Influence of the Competency, Independency, Accountability and Audit Firm Size on Audit Quality
DOI:
https://doi.org/10.26740/jaj.v11n1.p44-52Keywords:
Audit quality, Accountability, Audit Firm Size, Competency, IndependencyAbstract
Audited financial statement was an assurance for users of financial statement for the reliability of the information they use for making business decisions. Therefore, this study was intended to empirically examine the effect of competence, independence, accountability, and size of public accounting firms on audit quality. the hypothesis to was tested Structural Equation Modeling (SEM), which makes it possible to measure latent variables and hypothesis testing simultaneously. The result showed that competence had a positive impact on audit quality. Meanwhile, independency, accountability and audit firm size do not support the hypothesis.
References
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Lavin, D. (1976). Perceptions of the Independence of the Auditor. The Accounting Review, 51(1), 41-50.
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OConnell, V. (2007). Reflections on Stewardship Reporting. Accounting Horizons, 21(2), 215227. doi:10.2308/acch.2007.21.2.215
Robbins, S. P. (2009). Organizational behavior, 13th Edt: Prentice-Hall.
Sawan, N., & Alsaqqa, I. (2013). Audit firm size and quality: Does audit firm size influence audit quality in the Libyan oil industry? African Journal of Business Management, 7(3), 213-226.
Tan, H.-T., & Kao, A. (1999). Accountability effects on auditors' performance: The influence of knowledge, problem-solving ability, and task complexity. Journal of Accounting Research, 37(1), 209-223. doi.org/10.2307/2491404
Bungin, P. D. H. B., & Sos, S. (2010). Quantitative research methodology: Kencana.
Contrafatto, M. (2014). Stewardship Theory: Approaches and Perspectives. Accountability and Social Accounting for Social and Non-Profit Organizations, 177196.
doi:10.1108/s1041-706020140000017007
DeZoort, T., Harrison, P., & Taylor, M. (2006). Accountability and auditors materiality judgments: The effects of differential pressure strength on conservatism, variability, and effort. Accounting, Organizations and Society, 31(4-5), 373390. doi:10.1016/j.aos.2005.09.001
Goldman, A., & Barlev, B. (1974). The auditor-firm conflict of interests: Its implications for independence. The Accounting Review, 49(4), 707-718.
IAI. (2001). Auditing Standard Section 220: Independence. Professional Standards for Public Accountants. IIA-EAC. Jakarta. Salemba-Empat.
Indonesia, M. P. N. R. (2002). Regulation of the Minister of National Education of the Republic of Indonesia Number 045 / U / 2002 concerning the Core Curriculum of Higher Education. Jakarta, Indonesia: Ministry of National Education Republic of Indonesia.
Krishnan, J., & Schauer, P. C. (2000). The Differentiation of Quality among Auditors: Evidence from the NotforProfit Sector. AUDITING: A Journal of Practice & Theory, 19(2), 925. doi:10.2308/aud.2000.19.2.9
Kusharyanti. (2003). Research Findings Regarding Audit Quality and Possible Future Research Topics. Journal of Accounting and Management, 25-60.
Lavin, D. (1976). Perceptions of the Independence of the Auditor. The Accounting Review, 51(1), 41-50.
Mayangsari. (2003). The Effect of Audit Expertise and Independence on Audit Opinions: A Quasi-Experiment. Indonesian Accounting Research Journal.
OConnell, V. (2007). Reflections on Stewardship Reporting. Accounting Horizons, 21(2), 215227. doi:10.2308/acch.2007.21.2.215
Robbins, S. P. (2009). Organizational behavior, 13th Edt: Prentice-Hall.
Sawan, N., & Alsaqqa, I. (2013). Audit firm size and quality: Does audit firm size influence audit quality in the Libyan oil industry? African Journal of Business Management, 7(3), 213-226.
Tan, H.-T., & Kao, A. (1999). Accountability effects on auditors' performance: The influence of knowledge, problem-solving ability, and task complexity. Journal of Accounting Research, 37(1), 209-223. doi.org/10.2307/2491404
Published
2019-10-31
How to Cite
Rahmawati, A., Agustia, D., & Bernawati, Y. (2019). Influence of the Competency, Independency, Accountability and Audit Firm Size on Audit Quality. AKRUAL: Jurnal Akuntansi, 11(1), 44–52. https://doi.org/10.26740/jaj.v11n1.p44-52
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