Sinaga, Judith Tagal Gallena (2023) Does the Auditor’s Ethics Matter for Audit Quality? An Empirical Study in Local CPA Firms in Jakarta, Indonesia. In: 10th International Scholars' Conference: Full Paper Proceedings. AUP Research Office, Philippines, pp. 639-650.

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Abstract

Competent external auditors audit financial statements, which is important for any institution. Audit quality is a main concern in every audit. External auditors are obliged to express an opinion on the fairness of the audited financial statements. Ethical behavior is observed when an audit is conducted on a client, and the outcome affects the audit quality. The study aims to explore how auditors’ ethics affect audit quality. The participants in this study are 40 auditors who worked at local Certified Public Accountant (CPA) firms in Jakarta, Indonesia. Questionnaires were distributed, collected, and analyzed. For data analysis, this study used descriptive statistics, correlation, and simple linear regression. The findings revealed a moderately positive relationship (r = .040, p = 0.01) between the auditor’s ethics and audit quality. Moreover, regression results imply that auditor’s ethics significantly influenced the audit quality. According to the equation, audit quality = 21.065 + (0.394) (auditor’s ethics). The results imply that ethics is important in the audit process at local CPA firms. Thus, auditors are advised to observe the ethical way of auditing financial statements. For further research, there is a need to increase the number of samples and consider the ethical behavior of those auditors connected to the Big Four CPA firms. Additionally, other variables that may affect audit quality, such as key audit matters and block-chain technology, can be considered.

Item Type: Book Section
Subjects: 600 – Teknologi (Ilmu Terapan) > 650 Manajemen dan hubungan masyarakat > 657 Akuntansi
Divisions: Fakultas Ekonomi > Akuntansi
Depositing User: Mr Raymond Maulany
Date Deposited: 25 Sep 2024 03:46
Last Modified: 25 Sep 2024 03:46
URI: https://repository.unai.edu/id/eprint/777

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