The The influence of competence, independence, and professionalism of government internal auditors on audit quality at the representative offices of the financial and development supervisory agency (BPKP)

https://doi.org/10.35912/jomabs.v1i2.2102
Published: Apr 23, 2024

Abstract:

Purpose: This study aims to determine The Influence of Competence, Independence, and Professionalism of Government Internal Auditors on Audit Quality at the Representative Offices of the Financial and Development Supervisory Agency (BPKP) of South Sulawesi Province.

Research methodology: A quantitative approach was employed using questionnaires distributed to internal auditors. From a population of 143 auditors, 40 respondents were selected. Data were analyzed using descriptive statistics, classical assumption tests, multiple regression analysis, t-tests, and F-tests.

Results: The findings show that competence and professionalism have positive and significant effects on audit quality, while independence has a positive but insignificant effect on audit quality. Competence, independence, and professionalism collectively have a significant impact on audit quality.

Conclusions: Audit quality is strongly influenced by the competence and professionalism of internal auditors, while independence contributes positively but not significantly. Ensuring high competence and professionalism enhances the credibility and reliability of government audit.

Limitations: The study was limited to one BPKP representative office with a relatively small sample size, which may restrict the generalizability of the findings to other BPKP offices.

Contribution: This research provides empirical evidence for improving audit quality by strengthening the competence and professionalism of internal auditors, offering valuable insights for audit institutions and policymakers to enhance government accountability.

Keywords:
1. Audit Quality
2. Competence
3. Independence
4. Professionalism
Authors:
1 . Nisrinatul Nadhifa
University Hasanuddin, South Sulawesi, Indonesia
2 . Haliah Haliah
University Hasanuddin, South Sulawesi, Indonesia
3 . Nirwana Nirwana
University Hasanuddin, South Sulawesi, Indonesia
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Nadhifa, N., Haliah, H., & Nirwana, N. (2024). The The influence of competence, independence, and professionalism of government internal auditors on audit quality at the representative offices of the financial and development supervisory agency (BPKP) . Journal of Multidisciplinary Academic Business Studies, 1(2), 155–166. https://doi.org/10.35912/jomabs.v1i2.2102
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Issue & Section
Vol. 1 No. 2 (2024): February
Articles
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References

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    Bako, P. M. (2024). Audit committee attributes, audit quality and performance of oil and gas companies. International Journal of Financial, Accounting, and Management (IJFAM), 5(4), 511-522. doi:https://doi.org/10.35912/ijfam.v5i4.1634

    Boynton, & C, W. (1992). textsModern auditing.

    Erin, O. A., Bamigboye, O. A., & Oyewo, B. (2022). Sustainable development goals (SDG) reporting: an analysis of disclosure. Journal of Accounting in Emerging Economies, 12(5), 761-789. doi:https://doi.org/10.1108/JAEE-02-2020-0037

    Guénin-Paracini, H., Malsch, B., & Paillé, A. M. (2014). Fear and risk in the audit process. Accounting, Organizations and Society, 39(4), 264-288. doi:https://doi.org/10.1016/j.aos.2014.02.001

    Guenin-Paracini, H., Malsch, B., & Tremblay, M.-S. (2015). On the operational reality of auditors' independence: Lessons from the field. Auditing: A Journal of Practice & Theory, 34(2), 201-236. doi:https://doi.org/10.2308/ajpt-50905

    Haryanto, A. D., Tinangon, J. J., & Walandouw, S. K. (2024). Analysis of the utilization of inspectorate audit report provincial and regency/city inspectorates by BPK representative of North Sulawesi Province. The Contrarian: Finance, Accounting, and Business Research, 3(2), 167-179. doi:https://doi.org/10.58784/cfabr.164

    Herawaty, V., Andrian, P. D., & Oktaviani, A. A. (2022). Peningkatan Kompetensi Dasar Akuntansi Kelompok UMKM (Kompeten) di Bekasi. Yumary: Jurnal Pengabdian kepada Masyarakat, 2(2), 109-118. doi:https://doi.org/10.35912/yumary.v2i2.937

    Kirana, A. L. (2012). Pengaruh Profesionalisme Auditor Terhadap Pertimbangan Tingkat Materialitas Laporan Keuangan (Pada Kantor Akuntan Publik Komisariat Wilayah Bandung). Universitas Komputer Indonesia.

    Mandasari, R., & Rikumahu, B. (2024). The impact of capital structure, investment growth, and liquidity on financial performance of automotive companies and its components on the Indonesia Stock Exchange (2018-2022). Review of Multidisciplinary Academic and Practice Studies, 1(2), 151-164. doi:https://doi.org/10.35912/rmaps.v1i2.131

    Mekhritdinovich, U. A. (2024). Theoretical aspects of developing the professional competence of future pre-conscription military education teachers. Journal of Multidisciplinary Academic and Practice Studies, 3(3), 595-602. doi:https://doi.org/10.35912/jomaps.v3i3.3166

    Munawaroh, S. (2019). Pengaruh independensi dan motivasi terhadap kualitas audit pada Kantor Inspektorat Kabupaten Berau. JEMMA (Journal of Economic, Management and Accounting), 2(1), 27-35. doi:https://doi.org/10.35914/jemma.v2i1.140

    Nuraisiah, R., Haerani, A., & Fazri, E. (2023). The Effect of Integrity, Independence, Competence, Work Experience and Work Pressure on Audit Quality: Empirical Study at the Inspectorate of Pandeglang Regency. JURNAL SYNTAX IMPERATIF: Jurnal Ilmu Sosial dan Pendidikan, 4(4), 482-495. doi:https://doi.org/10.36418/syntax-imperatif.v4i4.279

    Pakaya, L., Mattulada, A., Din, M., Ikbal, M., & Kahar, A. (2024). The Role of Competence, Independence and Due Professional Care of Government Internal Supervisory Apparatus on Improving Audit Quality through Prevention of Regional Financial Fraud (Study on Regency/City/Provincial Inspectorates in Gorontalo Province). Asian Journal of Management, Entrepreneurship and Social Science, 4(04), 1311-1340. doi:https://doi.org/10.63922/ajmesc.v4i04.1163

    Plant, K., Barac, K., & Sarens, G. (2019). Preparing work-ready graduates – skills development lessons learnt from internal audit practice. Journal of Accounting Education, 48, 33-47. doi:https://doi.org/10.1016/j.jaccedu.2019.06.001

    Rajgopal, S., Srinivasan, S., & Zheng, X. (2021). Measuring audit quality. Review of Accounting Studies, 26(2), 559-619. doi:https://doi.org/10.1007/s11142-020-09570-9

    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. doi:https://doi.org/10.35912/ijfam.v4i1.234

    Rivaldo, Y., & Nabella, S. D. (2023). Employee performance: Education, training, experience and work discipline. Calitatea, 24(193), 182-188. doi:https://DOI:10.47750/QAS/24.193.20

    Sima, A. E., & Erwin, K. (2024). The Influence of Experience, Competence, Motivation, Professional Skepticism of Auditors on the Quality of BPKP Supervision (Study at BPKP North Sumatra Province). International Journal of Current Science Research and Review, 7(06), 3846-3859. doi:https://doi.org/10.47191/ijcsrr/V7-i6-34

    Suastuti, E., Hasanah, U., Djulaeka, D., Murni, M., & Cahyani, I. (2022). Corruption Prevention Through Accountability Mechanism Of State Financial Management In Handling Covid-19 Pandemic. Paper presented at the SHS Web of Conferences.

    Sukrisno, A. (2004). Auditing (Pemeriksaan Akuntan) oleh Kantor Akuntan Publik. Edisi Ketiga Penerbit Fakultas Ekonomi Universitas Trisakti.

    Sulaiman, N. A. (2023). External audit quality: its meaning, representations and potential conflict in practice. Accounting, Auditing & Accountability Journal, 36(5), 1417-1440. doi:https://doi.org/10.1108/AAAJ-02-2020-4443

    Tepalagul, N., & Lin, L. (2015). Auditor independence and audit quality: A literature review. Journal of accounting, auditing & finance, 30(1), 101-121. doi:https://doi.org/10.1177/0148558X14544505

    Thalib, M. A. (2023). Reflection of Local Cultural Values behind Loss Accounting Practices by Ilabulo Sellers. doi:https://doi.org/10.35912/ijamis.v1i2.1674

    Utami, A. P., Haliah, H., & Nirwana, N. (2022). Pengaruh Akuntabilitas Dan Independensi Terhadap Kualitas Audit Pada Kantor Akuntan Publik (KAP) Di Kota Makassar. Ar-Rihlah: Jurnal Keuangan dan Perbankan Syariah, 2(2), 134-148. doi:https://doi.org/10.35194/arps.v2i2.2639

    Yousefi Nejad, M., Sarwar Khan, A., & Othman, J. (2024). A panel data analysis of the effect of audit quality on financial statement fraud. Asian Journal of Accounting Research, 9(4), 422-445. doi:https://doi.org/10.1108/AJAR-04-2023-0112

  1. Andri, M., Putra, R. C., Saputra, K. R., & Gunawan, S. Y. (2020). Audit Quality Perspectives in Indonesia. Jurnal Pendidikan Akuntansi & Keuangan, 8(2), 141-154. doi:https://doi.org/10.17509/jpak.v8i2.24341
  2. Bako, P. M. (2024). Audit committee attributes, audit quality and performance of oil and gas companies. International Journal of Financial, Accounting, and Management (IJFAM), 5(4), 511-522. doi:https://doi.org/10.35912/ijfam.v5i4.1634
  3. Boynton, & C, W. (1992). textsModern auditing.
  4. Erin, O. A., Bamigboye, O. A., & Oyewo, B. (2022). Sustainable development goals (SDG) reporting: an analysis of disclosure. Journal of Accounting in Emerging Economies, 12(5), 761-789. doi:https://doi.org/10.1108/JAEE-02-2020-0037
  5. Guénin-Paracini, H., Malsch, B., & Paillé, A. M. (2014). Fear and risk in the audit process. Accounting, Organizations and Society, 39(4), 264-288. doi:https://doi.org/10.1016/j.aos.2014.02.001
  6. Guenin-Paracini, H., Malsch, B., & Tremblay, M.-S. (2015). On the operational reality of auditors' independence: Lessons from the field. Auditing: A Journal of Practice & Theory, 34(2), 201-236. doi:https://doi.org/10.2308/ajpt-50905
  7. Haryanto, A. D., Tinangon, J. J., & Walandouw, S. K. (2024). Analysis of the utilization of inspectorate audit report provincial and regency/city inspectorates by BPK representative of North Sulawesi Province. The Contrarian: Finance, Accounting, and Business Research, 3(2), 167-179. doi:https://doi.org/10.58784/cfabr.164
  8. Herawaty, V., Andrian, P. D., & Oktaviani, A. A. (2022). Peningkatan Kompetensi Dasar Akuntansi Kelompok UMKM (Kompeten) di Bekasi. Yumary: Jurnal Pengabdian kepada Masyarakat, 2(2), 109-118. doi:https://doi.org/10.35912/yumary.v2i2.937
  9. Kirana, A. L. (2012). Pengaruh Profesionalisme Auditor Terhadap Pertimbangan Tingkat Materialitas Laporan Keuangan (Pada Kantor Akuntan Publik Komisariat Wilayah Bandung). Universitas Komputer Indonesia.
  10. Mandasari, R., & Rikumahu, B. (2024). The impact of capital structure, investment growth, and liquidity on financial performance of automotive companies and its components on the Indonesia Stock Exchange (2018-2022). Review of Multidisciplinary Academic and Practice Studies, 1(2), 151-164. doi:https://doi.org/10.35912/rmaps.v1i2.131
  11. Mekhritdinovich, U. A. (2024). Theoretical aspects of developing the professional competence of future pre-conscription military education teachers. Journal of Multidisciplinary Academic and Practice Studies, 3(3), 595-602. doi:https://doi.org/10.35912/jomaps.v3i3.3166
  12. Munawaroh, S. (2019). Pengaruh independensi dan motivasi terhadap kualitas audit pada Kantor Inspektorat Kabupaten Berau. JEMMA (Journal of Economic, Management and Accounting), 2(1), 27-35. doi:https://doi.org/10.35914/jemma.v2i1.140
  13. Nuraisiah, R., Haerani, A., & Fazri, E. (2023). The Effect of Integrity, Independence, Competence, Work Experience and Work Pressure on Audit Quality: Empirical Study at the Inspectorate of Pandeglang Regency. JURNAL SYNTAX IMPERATIF: Jurnal Ilmu Sosial dan Pendidikan, 4(4), 482-495. doi:https://doi.org/10.36418/syntax-imperatif.v4i4.279
  14. Pakaya, L., Mattulada, A., Din, M., Ikbal, M., & Kahar, A. (2024). The Role of Competence, Independence and Due Professional Care of Government Internal Supervisory Apparatus on Improving Audit Quality through Prevention of Regional Financial Fraud (Study on Regency/City/Provincial Inspectorates in Gorontalo Province). Asian Journal of Management, Entrepreneurship and Social Science, 4(04), 1311-1340. doi:https://doi.org/10.63922/ajmesc.v4i04.1163
  15. Plant, K., Barac, K., & Sarens, G. (2019). Preparing work-ready graduates – skills development lessons learnt from internal audit practice. Journal of Accounting Education, 48, 33-47. doi:https://doi.org/10.1016/j.jaccedu.2019.06.001
  16. Rajgopal, S., Srinivasan, S., & Zheng, X. (2021). Measuring audit quality. Review of Accounting Studies, 26(2), 559-619. doi:https://doi.org/10.1007/s11142-020-09570-9
  17. 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. doi:https://doi.org/10.35912/ijfam.v4i1.234
  18. Rivaldo, Y., & Nabella, S. D. (2023). Employee performance: Education, training, experience and work discipline. Calitatea, 24(193), 182-188. doi:https://DOI:10.47750/QAS/24.193.20
  19. Sima, A. E., & Erwin, K. (2024). The Influence of Experience, Competence, Motivation, Professional Skepticism of Auditors on the Quality of BPKP Supervision (Study at BPKP North Sumatra Province). International Journal of Current Science Research and Review, 7(06), 3846-3859. doi:https://doi.org/10.47191/ijcsrr/V7-i6-34
  20. Suastuti, E., Hasanah, U., Djulaeka, D., Murni, M., & Cahyani, I. (2022). Corruption Prevention Through Accountability Mechanism Of State Financial Management In Handling Covid-19 Pandemic. Paper presented at the SHS Web of Conferences.
  21. Sukrisno, A. (2004). Auditing (Pemeriksaan Akuntan) oleh Kantor Akuntan Publik. Edisi Ketiga Penerbit Fakultas Ekonomi Universitas Trisakti.
  22. Sulaiman, N. A. (2023). External audit quality: its meaning, representations and potential conflict in practice. Accounting, Auditing & Accountability Journal, 36(5), 1417-1440. doi:https://doi.org/10.1108/AAAJ-02-2020-4443
  23. Tepalagul, N., & Lin, L. (2015). Auditor independence and audit quality: A literature review. Journal of accounting, auditing & finance, 30(1), 101-121. doi:https://doi.org/10.1177/0148558X14544505
  24. Thalib, M. A. (2023). Reflection of Local Cultural Values behind Loss Accounting Practices by Ilabulo Sellers. doi:https://doi.org/10.35912/ijamis.v1i2.1674
  25. Utami, A. P., Haliah, H., & Nirwana, N. (2022). Pengaruh Akuntabilitas Dan Independensi Terhadap Kualitas Audit Pada Kantor Akuntan Publik (KAP) Di Kota Makassar. Ar-Rihlah: Jurnal Keuangan dan Perbankan Syariah, 2(2), 134-148. doi:https://doi.org/10.35194/arps.v2i2.2639
  26. Yousefi Nejad, M., Sarwar Khan, A., & Othman, J. (2024). A panel data analysis of the effect of audit quality on financial statement fraud. Asian Journal of Accounting Research, 9(4), 422-445. doi:https://doi.org/10.1108/AJAR-04-2023-0112