Determinants of Audit Quality: An Analysis of Three Points of International Standards on Auditing (ISA) and The Identity of The Auditor As An Independent Accountant

Charis Subianto

2018

Abstract

International Standards on Auditing (ISA) emphasize several points, particularly those related to auditor behavior in audit assignment and the management of audit implementation. The discussion in this study examines three points emphasized in the ISA, i.e. risk-based audit, auditor professional skepticism, and auditor professional judgement, before undertaking a review of the identity of the auditor as an independent accountant, i.e. auditor independence. The purpose of this study is to provide empirical evidence for the existence of a significant influence of the ISA points and the identity of the public accountant on the audit quality generated by the auditor. This study was conducted by distributing questionnaires to all public accounting firms in Surabaya and Sidoarjo, which consisted of 46 firms. The population for this study was all the auditors working in public accounting firms in Surabaya and Sidoarjo, and the sample used was 158 auditors from 19 public accounting firms. Hypothesis testing was carried out by means of the Partial Least Square method with Warp PLS version 5.0. The results show that auditor professional skepticism and auditor professional judgement, as two important points of ISA, have a positive and significant effect on audit quality. Further, independence, as the identity of an auditor, has a positive and significant effect on audit quality, while audit risk, as another ISA point in terms of public management accounting, has a negative and insignificant effect on audit quality.

Paper Citation

in Harvard Style

Subianto C. (2018). Determinants of Audit Quality: An Analysis of Three Points of International Standards on Auditing (ISA) and The Identity of The Auditor As An Independent Accountant.In Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium, ISBN 978-989-758-339-1, pages 558-565. DOI: 10.5220/0007018105580565

in Bibtex Style

@conference{jcae symposium18,
author={Charis Subianto},
title={Determinants of Audit Quality: An Analysis of Three Points of International Standards on Auditing (ISA) and The Identity of The Auditor As An Independent Accountant},
booktitle={Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium,},
year={2018},
pages={558-565},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007018105580565},
isbn={978-989-758-339-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium,
TI - Determinants of Audit Quality: An Analysis of Three Points of International Standards on Auditing (ISA) and The Identity of The Auditor As An Independent Accountant
SN - 978-989-758-339-1
AU - Subianto C.
PY - 2018
SP - 558
EP - 565
DO - 10.5220/0007018105580565