The influence of abnormal audit fees, independence, and competence on audit quality

https://doi.org/10.35912/ijfam.v4i1.234
Published: Jun 9, 2022

Abstract:

Purpose: The purpose of this study is to determine whether abnormal audit fees, independence, and competence affect the audit quality according to 9 Public Accounting Firms in Bandung. The factors tested in this study are abnormal audit fee, independence, and competence as the independent variables while auditing quality is the dependent variable.

Research Methodology: The sampling method used in this study is nonprobability sampling. The reason for choosing the method is the consideration that the selected data sample meets the criteria being tested. The sample selection criteria in this study are auditors in 9 Bandung Public Accounting Firms. In this study, the analysis method was partially (t-test) with a significance of 5%. The data was analyzed by using Version 20 of the Social Science Statistics Package (SPSS).

Results: The research results partially and simultaneously indicate that abnormal audit fees, independence, and competence affect audit quality according to the respondent from 9 Public Accounting Firms in Bandung at 52,1%.

Limitations: This study only focuses on the effect of abnormal audit fees, independence, and competence on audit quality in only 9 Public Accounting Firms in Bandung.

Contribution: The results of the study provide education about audit quality that companies use for the services of auditors and inform future researchers.

Keywords:
1. Abnormal audit fees
2. Auditing
3. Audit quality
4. Competence
5. Independent
Authors:
1 . Iqbal Deandre Ramadhan
Departement of Accounting, Faculty of Economics, Widyatama University
2 . Mochamad Kohar Mudzakar
Departement of Accounting, Faculty of Economics, Widyatama University
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How to Cite
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. https://doi.org/10.35912/ijfam.v4i1.234
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Issue & Section
Vol. 4 No. 1 (2022): June
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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  1. Agoes, S. (2012). Auditing: Petunjuk Praktis Pemeriksaan Akuntan oleh Akuntan Publik 1. Salemba empat.
  2. Alim, M. N., Hapsari, T., & Purwanti, L. (2012). Pengaruh kompetensi dan independensi terhadap Kualitas Audit dengan etika Auditor sebagai variabel moderasi, Simposium Nasional Akuntansi X, Unhas, Makassar, 26-28 Juli 2007, 74-75.
  3. Annaisabiru, A. (2020). Profesi Akuntansi dan Etika Profesi Akuntansi. Retrieved from Ruangguru: https://blog.ruangguru.com/profesi-akuntansi-dan-etika-profesi-akuntansi
  4. Arens, A. A., Radal, E. J., & Beasley, M. S. (2011). Jasa Audit dan Assurance Pendekatan Terpadu (Adaptasi Indonesia), Buku 1. Jakarta: Salemba Empat.
  5. Asthana, S. C., & Boone, J. P. (2012). Abnormal audit fee and audit quality. Auditing: A Journal of Practice & Theory, 31(1), 1-22.
  6. Bakar, N. B. A., Rahman, A. R. A., & Rashid, H. M. A. (2005). Factors influencing auditor independence: Malaysian loan officers' perceptions. Managerial Auditing Journal, 20(8), 804-822.
  7. Bastian, I. (2007). Audit sektor publik. Jakarta: Salemba Empat.
  8. Bennett, G. B., & Hatfield, R, C. (2013). The accounting review: The effect of the social mismatch between staff auditor and client management on the collection of Audit evidence. The Accounting Review, 88(1), 31-50.
  9. Bing, Jueming (Jimmy), Chu Xin Huang, Anqi (Linda) Li. Xinyi (Lydia) Zhu. (2014). “Audit Quality Research Report. A report prepared by the 2013-14 Summer Interns in the Research”. School of Accounting and Business Information Systems. 21 January 2014
  10. Cho, J. H., C., Kim, J. B., & Zang, Y. (2010). Do abnormally high audit fees impair audit quality? Auditing: A Journal of Practice and Theory, 29(2), 115-140.
  11. Committe, A. F. (2000). Commentary: SEC Auditor Independence requirements. Accounting Horizon, 15(4), 373-386.
  12. Djamil, N. (2005). Faktor-faktor yang mempengaruhi kualitas audit pada sektor publik dan beberapa karakteristik untuk meningkatkannya. Jurnal STIE Nasional Banjarmasin.
  13. Fitrawansyah. (2014). Fraud dan Auditing. Mitra Wacana Media.
  14. Geiger, M. A., & Raghunandan, K. (2011). Going concern opinions in the new legal environment. Accounting Horizons, 16(1), 17-26.
  15. Ghozali, I. (2016). Aplikasi analisis multivariete dengan Program IBM SPSS 23. Semarang: Badan Penerbit-Undip.
  16. Lennox, C. (2000). Do companies successfully engage in opinion shopping. Journal of Accounting and Economics, 29(3), 321-337.
  17. Mulyadi. (2011). Sistem akuntansi (Vol. 4). Jakarta: Salemba Empat.
  18. Nataline. (2007). Pengaruh batasan waktu audit, pengetahuan akuntansi dan auditing, bonus dan pengalaman terhadap kualitas audit pada lantor akuntan publik di Semarang. Skripsi. Semarang: Fakultas Ekonomi Negeri Semarang.
  19. Nurmayanti. (2020). Begini awal mula kasus SNP Finance yang rugikan 14 Bank. Retrieved from https://www.liputan6.com/bisnis/read/3653257/begini-awal-mula-kasus-snp-finance-yang-rugikan-14-bank
  20. Nuryaman, & Veronica, C. (2015). Metodelogi penelitian akuntansi dan bisnis teori dan praktek. Bogor: Ghalia Indonesia.
  21. Rai, G. A. (2008). Audit kinerja pada sektor publik. Jakarta: Salemba Empat.
  22. Simanjuntak, P. (2008). Pengaruh time budget pressure dan resiko kesalahan terhadap penurunan kualitas audit (Reduced Audit Qaulity) (Studi Empiris pada auditor KAP di Jakarta), (Doctoral dissertation, Program Sarjana Universitas Diponegoro).
  23. Singgih, E. M., & Bawono, I. R. (2010). Pengaruh independensi,pengalaman, due professional care, dan akuntabilitas terhadap kualiatas audit (Studi pada KAP Big Four di Indonesia). Simposium Nasional Akuntansi XIII Purwokerto, 31.
  24. Sujarweni, V. W. (2015). Metodologi Penelitian Bisnis & Ekonomi. Yogyakarta: Pustaka Baru Press.
  25. Trisnaningsih, S. (2004). Motivasi sebagai "Moderating Variabel" dalam Hubungan antara Komitmen dengan Kepuasan Kerja, Jurnal Maksi, 4, 16-24.
  26. Tuanakotta, T. M. (2013). Berfikir Kritis dalam Auditing. Jakarta: Salemba Empat.
  27. Watkins, A. L., Hillison, W., & Morecroft, S. E. (2004). Audit Quality: A synthesis of theory and empirical evidence. Journal of Accounting Literature, 23, 153-193.