The Impact of Ethic and Competence on Audit Quality: Accountability as Moderating Variable

https://doi.org/10.35912/simo.v5i2.3335
Published: Oct 9, 2024

Abstract:

Purpose: This study used accountability as a moderating variable to examine the impact of ethics and competence on audit quality.
Methodology: The data used in this study were derived from a questionnaire survey distributed to respondents from October to December 2023. The respondents for this study were Badan Pemeriksa Keuangan (BPK) head office auditors at State Financial Auditor III. The respondents were selected using purposive sampling criteria. The final sample comprised 69 respondents. This study used the structural equation Modelling (SEM) approach with Smart Partial Least Square (PLS) software to analyze the data.
Results: The findings show that ethics and competence positively affect audit quality. Accountability as a moderating variable strengthens the impact of ethics on audit quality. However, accountability does not influence the effect of competence on audit quality.
Conclusions: This research concludes that the ethics and competence of BPK’s auditors positively affect the quality of audit reports. In other words, better compliance with the code of ethics and continuous improvement of competence will improve the quality of audit reports.
Limitations: This research used a method of distributing questionnaires to several respondents online so that the questions from respondents regarding the questionnaires could not be confirmed directly. In addition, this study uses only two audit attributes as determinants of audit quality.
Contribution: This research will provide an understanding of BPK stakeholders regarding the importance of ethics and competence for BPK auditors. Additionally, it is expected that they will not attempt to influence BPK auditors to commit ethical violations. Furthermore, this research is meritorious for BPK to investigate the factors that can encourage the accountability of auditors’ attitudes to improve audit quality.

Keywords:
1. Accountability
2. Audit Quality
3. Competence
4. Ethic
Authors:
1 . Robby Saputra
2 . Amrie Firmansyah
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How to Cite
Saputra, R., & Firmansyah, A. . (2024). The Impact of Ethic and Competence on Audit Quality: Accountability as Moderating Variable. Studi Ilmu Manajemen Dan Organisasi, 5(2), 181–198. https://doi.org/10.35912/simo.v5i2.3335
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Issue & Section
Vol. 5 No. 2 (2024): Oktober
Articles
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References

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    Abdullah, I. (2016). Pengaruh Akuntabilitas, Objektivitas Terhadap Kualitas Audit Dengan Etika Auditor Sebagai Variabel Moderasi Study Kasus Pada Kantor Akuntan Publik Di Kota Medan. Human Falah: Jurnal Ekonomi Dan Bisnis Islam, 3(1), 93-112.

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    Mardiati, D., & Pratiwi, K. J. (2019). Profesionalisme Auditor Terhadap Kualitas Audit. Jurnal Sekuritas, 2(3), 20-33.

    Marlina, K. A. T., Manuaba, I. M. P., & Anggiriawan, P. B. (2023). Pengaruh Kompetensi, Independensi, Akuntabilitas Dan Objektivitas Auditor Terhadap Kualitas Audit Pada Kantor Akuntan Publik Di Bali. Jurnal Riset Akuntansi Warmadewa, 4(2), 19-24.

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    Omodero, C. O. (2019). Genesis Of Accountability And Its Impact On Accounting. International Journal Of Financial, Accounting, And Management, 1(1), 47-55.

    Pinto, M., Rosidi, R., & Baridwan, Z. (2020). Effect Of Competence, Independence, Time Pressure And Professionalism On Audit Quality (Inspeção Geral Do Estado In Timor Leste). International Journal Of Multicultural And Multireligious Understanding, 7(8), 658-667.

    Pradnyayani, G. A. A. I., & Wirama, D. G. (2023). Kompetensi Dan Tekanan Anggaran Waktu Pada Kualitas Audit Bpk Dengan Etika Auditor Sebagai Pemoderasi.

    Raharjo, C. P. (2022). The Effect Of Work Experience, Competency, And Core Compliance On Audit Quality (Empirical Study On Auditors Of Papua Provincial Bpk Representatives). Retrieved From File:///C:/Users/Aryag/Downloads/509-Article%20text-3706-1-10-20220721.Pdf

    Rahma, T. M., Linuhung, T. S., Rahmadisa, N., Azizah, L., Kurniawan, A., Wijaya, C. N., & Aulya, R. R. (2022). Bpk Ri Audit Quality In Ethical Perspective. Jurnal Akuntansi, Keuangan, Dan Manajemen, 3(2), 177-194.

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    Sambo, E. M., Marwah, Y., & Baso, A. F. A. (2016). Effect Of Auditor Ethics, Knowledge And Dysfunctional Behavior Audit Office Of The Quality Of Public Accountants In Makassar. Journal Of Education And Vocational Research, 7(1), 48-53.

    Sangadah, L. (2022). Pengaruh Akuntabilitas Auditor, Independensi Auditor, Dan Profesionalisme Auditor Terhadap Kualitas Audit. Owner: Riset Dan Jurnal Akuntansi, 6(2), 1137-1143.

    Satria, M. R. (2020). Effect Of Auditor's Experience And Ethics On Audit Quality In Public Accountant Offices In Bandung City. Jees: Journal Of Economic Empowerment Strategy, 3(1), 18-24.

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    Yulianti, Y., Chandrarin, G., & Supanto, F. (2022). Effect Of Ethics And Professionalism on Audit Quality: A Moderating Role Of Dysfunctional Audit Behavior. Problems And Perspectives In Management, 20(3), 529-539.

    Zahmatkesh, S., & Rezazadeh, J. (2017). The Effect Of Auditor Features On Audit Quality. Tékhne, 15(2), 79-87.

    Zam, R. Y. Z., Kalangi, L., & Weku, P. (2021). Pengaruh Kompetensi, Etika, Dan Independensi Auditor Terhadap Kualitas Audit Pada Perwakilan Bpkp Provinsi Sulawesi Utara. Jurnal Emba: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 9(4), 462-474.

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  2. Abdullah, I. (2016). Pengaruh Akuntabilitas, Objektivitas Terhadap Kualitas Audit Dengan Etika Auditor Sebagai Variabel Moderasi Study Kasus Pada Kantor Akuntan Publik Di Kota Medan. Human Falah: Jurnal Ekonomi Dan Bisnis Islam, 3(1), 93-112.
  3. Adedeji, A. O. (2022). Analysis Of Good Governance As An Earmark Of Distinctive Federalism In Nigeria Federation. Journal Of Governance And Accountability Studies, 2(2), 147-158.
  4. Aleksovska, M. (2021). Accountable For What? The Effect Of Accountability Standard Specification On Decision-Making Behavior In The Public Sector. Public Performance & Management Review, 44(4), 707-734.
  5. Algam, G. S. (2018). Hermeneutika Gadamerian Untuk Memahami Kualitas Audit (Pemeriksaan Keuangan) Bpk Ri. Jurnal Akuntansi Aktual, 5(1), 31-45.
  6. Andriany, D. (2019). Pengaruh Faktor-Faktor Individual Terhadap Kualitas Audit (Studi Kasus Pada Auditor Bpk Ri Perwakilan Provinsi Maluku). Jurnal Maneksi (Management Ekonomi Dan Akuntansi), 8(2), 185-194.
  7. Angelia, M., Br Ginting, D. M., Hutagalung, D. K., & Hayati, K. (2020). Pengaruh Pengetahuan, Akuntabilitas, Dan Profesionalisme Terhadap Kualitas Hasil Kerja Auditor (BPKP) Sumatera Utara. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (Mea), 4(3), 1205-1221.
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  9. Darmawan, D., Sinambela, E. A., & Mauliyah, N. I. (2016). The Effect Of Competence, Independence And Workload On Audit Quality. Jares (Journal Of Academic Research And Sciences), 1(2), 5-5.
  10. Dewi, R. N., Maulana, I., & Muhadzib, M. (2019). The Influence Of Auditor Independence, Work Experience, Work Satisfaction, And Auditor Competency Against Audit Quality. Indonesian Management And Accounting Research, 16(2), 46-65.
  11. F. Hair Jr, J., Sarstedt, M., Hopkins, L., & G. Kuppelwieser, V. (2014). Partial Least Squares Structural Equation Modeling (Pls-Sem) An Emerging Tool In Business Research. European Business Review, 26(2), 106-121.
  12. Firmansyah, F., Sarwani, S., & Safrida, L. (2020). Pengaruh Kompetensi, Objektivitas, Etika, Integritas, Dan Time Budget Pressure Terhadap Kualitas Pemeriksaan Pada Bpk Perwakilan Kalimantan Timur. Organum: Jurnal Saintifik Manajemen Dan Akuntansi, 3(2), 109-121.
  13. Flayyih, H. H., Abass, Z., Noorullah, A. S., & Jari, A. S. (2020). The Affecting Factors On The Quality Of The Audit Before And After The Collapse Of The Us Energy Company Enron: A Literature Review. Ishtar Journal Of Economics And Business Studies (Ijebs), 1(1), 1-7.
  14. Heliantono, H., Gunawan, I. D., Khomsiyah, K., & Arsjah, R. J. (2020). Moral Development As The Influencer Of Fraud Detection. International Journal Of Financial, Accounting, And Management, 2(1), 1-11.
  15. Hikmayah, N., & Aswar, K. (2019). The Impact Of Factors On The Audit Quality In Indonesia: The Moderating Effect Of Professional Commitments. International Journal Of Academic Research In Accounting, Finance And Management Sciences, 9(4), 285-293.
  16. Juliyanti, W. (2023). Akuntabilitas Publik Dan Pengungkapan Laporan Keuangan Pemerintah Daerah (Lkpd) Di Indonesia. Reviu Akuntansi, Manajemen, Dan Bisnis, 3(1), 1-17. Doi:10.35912/Rambis.V3i1.2006
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  18. Krishna, K., & Nadya, F. (2020). The Effect Of Independence, Integrity, Professionalism, And Professional Skepticism On The Accuracy Of Giving Audit Opinion (The Case Of Audit Board Of The Republic Of Indonesia). Advances In Economics, Business And Management Research, 127, 5-10.
  19. Listya, A., & Siregar, M. I. (2020). Audit Rotation And Audit Fee Determination Policy On Audit Quality With Lowballing Audit Practice As The Intervening Variable. Jurnal Akuntansi, Keuangan, Dan Manajemen, 2(1), 71-82.
  20. Lubna, I., Arifin, M. A., & Nurmala, N. (2024). Analisis Audit Tenure, Ukuran Perusahaan, Dan Audit Deiay Terhadap Kuaiitas Audit Pada Perusahaan Subsektor Pertambangan Batubara Yang Terdaftar Di Bei. Reviu Akuntansi, Manajemen, Dan Bisnis, 4(1), 131-143. Doi:10.35912/Rambis.V4i1.3360
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  22. Mardiati, D., & Pratiwi, K. J. (2019). Profesionalisme Auditor Terhadap Kualitas Audit. Jurnal Sekuritas, 2(3), 20-33.
  23. Marlina, K. A. T., Manuaba, I. M. P., & Anggiriawan, P. B. (2023). Pengaruh Kompetensi, Independensi, Akuntabilitas Dan Objektivitas Auditor Terhadap Kualitas Audit Pada Kantor Akuntan Publik Di Bali. Jurnal Riset Akuntansi Warmadewa, 4(2), 19-24.
  24. Marsudi, A. S. (2020). Determinant Of Quality Audit In Sustainable Development Goals. Paper Presented At The The 2nd International Conference On Inclusive Business In The Changing World, Vol1 Icib.
  25. Nurwulan, L. L., & Fasha, N. C. N. (2018). Professional Commitment And Auditor Experiences On Auditors’s Behavior In An Audit Conflict Situation And Impact On The Implementation Of Auditors Profession Ethics. The International Journal Of Business Review (The Jobs Review), 1(1), 9-20.
  26. Omodero, C. O. (2019). Genesis Of Accountability And Its Impact On Accounting. International Journal Of Financial, Accounting, And Management, 1(1), 47-55.
  27. Pinto, M., Rosidi, R., & Baridwan, Z. (2020). Effect Of Competence, Independence, Time Pressure And Professionalism On Audit Quality (Inspeção Geral Do Estado In Timor Leste). International Journal Of Multicultural And Multireligious Understanding, 7(8), 658-667.
  28. Pradnyayani, G. A. A. I., & Wirama, D. G. (2023). Kompetensi Dan Tekanan Anggaran Waktu Pada Kualitas Audit Bpk Dengan Etika Auditor Sebagai Pemoderasi.
  29. Raharjo, C. P. (2022). The Effect Of Work Experience, Competency, And Core Compliance On Audit Quality (Empirical Study On Auditors Of Papua Provincial Bpk Representatives). Retrieved From File:///C:/Users/Aryag/Downloads/509-Article%20text-3706-1-10-20220721.Pdf
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  31. Ramadhan, I. D., & Mudzakar, M. K. (2022). The Influence Of Abnormal Audit Fees, Independence, And Competence On Audit Quality. International Journal Of Financial, Accounting, And Management, 4(1), 1-15.
  32. Rosadi, Y. M. R., & Barus, I. S. L. (2022). The Effect Of Time Budget Pressure And Auditor’s Competency On Audit Quality. International Journal Of Financial, Accounting, And Management, 4(3), 241-254.
  33. Sabirin, S., Azimi, A., & Wahyudi, H. (2023). Pengaruh Etika Profesi Dan Fee Audit Terhadap Kualitas Audit. Aktiva: Journal Of Accountancy And Management, 1(1), 30-42.
  34. Sambo, E. M., Marwah, Y., & Baso, A. F. A. (2016). Effect Of Auditor Ethics, Knowledge And Dysfunctional Behavior Audit Office Of The Quality Of Public Accountants In Makassar. Journal Of Education And Vocational Research, 7(1), 48-53.
  35. Sangadah, L. (2022). Pengaruh Akuntabilitas Auditor, Independensi Auditor, Dan Profesionalisme Auditor Terhadap Kualitas Audit. Owner: Riset Dan Jurnal Akuntansi, 6(2), 1137-1143.
  36. Satria, M. R. (2020). Effect Of Auditor's Experience And Ethics On Audit Quality In Public Accountant Offices In Bandung City. Jees: Journal Of Economic Empowerment Strategy, 3(1), 18-24.
  37. Sumardjo, M., & Aswar, K. (2022). The Quality Of Investigation Audit Influenced By Independence And Integrity. Information Management And Business Review, 14(2 (I)), 15-27.
  38. Tina, A. (2022). Pengaruh Kompetensi Auditor Terhadap Kualitas Audit Dengan Integritas Sebagai Variabel Moderasi Pada Kantor Akuntan Publik Kota Medan. Jurnal Akuntansi Kompetif, 5(3), 243-251.
  39. Yulianti, Y., Chandrarin, G., & Supanto, F. (2022). Effect Of Ethics And Professionalism on Audit Quality: A Moderating Role Of Dysfunctional Audit Behavior. Problems And Perspectives In Management, 20(3), 529-539.
  40. Zahmatkesh, S., & Rezazadeh, J. (2017). The Effect Of Auditor Features On Audit Quality. Tékhne, 15(2), 79-87.
  41. Zam, R. Y. Z., Kalangi, L., & Weku, P. (2021). Pengaruh Kompetensi, Etika, Dan Independensi Auditor Terhadap Kualitas Audit Pada Perwakilan Bpkp Provinsi Sulawesi Utara. Jurnal Emba: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 9(4), 462-474.