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Journal articles on the topic 'Individual auditor'
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1
Chen, Jeff Zeyun, Mei-Hui Chen, Chen-Lung Chin, and Gerald J. Lobo. "Do Firms That Have a Common Signing Auditor Exhibit Higher Earnings Comparability?" Accounting Review 95, no. 3 (August 1, 2019): 115–43. http://dx.doi.org/10.2308/accr-52522.
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ABSTRACT We hypothesize that if individual auditors possess unique audit styles that they consistently apply to different audit engagements, then client firms with a common signing auditor will exhibit higher earnings comparability. Using a large sample of Chinese firms, we find that client firms report more comparable earnings when they are audited by the same individual auditor than when they are audited by (1) different audit firms, (2) the same audit firm, but different audit offices, and (3) the same audit office, but different individual auditors. The individual auditor style effect is stronger for larger audit firms, senior signing auditors, and signing auditors with more stable teamwork experience. We also document that having a common signing auditor is associated with lower analyst earnings forecast error and dispersion for client firms. This study contributes to the literature by showing that individual auditors have a significant impact on client firms' earnings comparability.
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Gul, Ferdinand A., Donghui Wu, and Zhifeng Yang. "Do Individual Auditors Affect Audit Quality? Evidence from Archival Data." Accounting Review 88, no. 6 (June 1, 2013): 1993–2023. http://dx.doi.org/10.2308/accr-50536.
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ABSTRACT: We examine whether and how individual auditors affect audit outcomes using a large set of archival Chinese data. We analyze approximately 800 individual auditors and find that they exhibit significant variation in audit quality. The effects that individual auditors have on audit quality are both economically and statistically significant, and are pronounced in both large and small audit firms. We also find that the individual auditor effects on audit quality can be partially explained by auditor characteristics, such as educational background, Big N audit firm experience, rank in the audit firm, and political affiliation. Our findings highlight the importance of scrutinizing and understanding audit quality at the individual auditor level. Data Availability: Data used in this study are publicly available from the sources described herein.
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Chi, Hsin-Yi, and Chen-Lung Chin. "Firm versus Partner Measures of Auditor Industry Expertise and Effects on Auditor Quality." AUDITING: A Journal of Practice & Theory 30, no. 2 (May 1, 2011): 201–29. http://dx.doi.org/10.2308/ajpt-50004.
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SUMMARY This paper first examines whether the Big 4 audit quality is associated with auditor industry expertise, measured as both individual partner- and audit firm-level leadership. We focus on a sample of listed firms in Taiwan, where audit reports must be audited and signed by the two signing auditors as well as by an audit firm. For accruals analyses, we find that differential discretionary accruals due to industry expertise are driven by a combination of firm and partner expertise. For audit opinion analyses, we find that differential likelihood of a modified audit opinion (hereafter, MAO) is primarily attributable to signing auditor specialists. We also find that firm-level specialists alone are not associated with a higher likelihood of issuing a MAO. However, firm-level specialists, in combination with signing auditor specialists, can add something over and above the effects of the signing auditor specialists alone. Second, we further examine whether there is differential audit quality between signing auditors (i.e., lead and concurring auditors). We find that clients of lead signing auditor specialists, either alone or in conjunction with concurring auditor specialists, have smaller accruals and are more likely to receive a MAO compared to those of nonspecialists. However, concurring auditor specialists alone are not associated with higher audit quality, in terms of either smaller accruals or a higher MAO likelihood. Thus, we conclude that industry expertise is not homogeneous across individual auditors within the same audit firm in Taiwan. Data Availability: Data are available from the sources identified in the text.
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Aobdia, Daniel. "The Impact of the PCAOB Individual Engagement Inspection Process—Preliminary Evidence." Accounting Review 93, no. 4 (October 1, 2017): 53–80. http://dx.doi.org/10.2308/accr-51948.
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ABSTRACT This study investigates the impact on auditors' and clients' activities of Public Company Accounting Oversight Board (PCAOB) inspections of individual engagements. I find that both auditors and clients react to a Part I Finding, which identifies audit deficiencies on their inspected engagements. Audit firm effort increases on inspected engagements and non-inspected engagements of offices or partners that receive a Part I Finding, suggesting direct, as well as spillover, effects of the PCAOB inspections. The client is also more likely to switch auditors. However, auditor effort and financial reporting quality subsequently decline for inspected engagements that did not receive a Part I Finding. In these cases, clients are less likely to switch auditors. Additional analyses show that the auditor reaction depends on whether the auditor is an industry specialist, the client reaction depends on the size of the auditor, and effects on financial reporting quality depend on whether the deficiency is a firm-wide issue. Overall, these results suggest that both audit firms and clients care about the PCAOB individual engagement inspection process and, in several instances, gravitate toward the level set by the Part I Finding bar. JEL Classifications: M42; M48.
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Abdul, Yusrin, Jullie J. Sondakh, and Jantje Tinangon. "Pengaruh Faktor-Faktor Individual Terhadap Perilaku Etis Auditor Pada Inspektorat Provinsi Gorontalo." JURNAL RISET AKUNTANSI DAN AUDITING "GOODWILL" 10, no. 2 (August 30, 2019): 123. http://dx.doi.org/10.35800/jjs.v10i2.25605.
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Abstract. This study aims to know and analyze the effects of individual factors namely internal locus of control, intellectual intelligence, emotional intelligence, and spiritual intelligence on the ethical behavior of the Gorontalo Provincial Inspectorate auditors. This is a quantitative research. The population in this study was all staff of the Gorontalo Provincial Inspectorate. Samples are auditors having certification of the Auditor's Functional Position (JFA). This study included 44 respondents. Data were collected by questionnaires. Data were analysed by multiple regression and SPSS program. The results of the study showed that an internal locus of control affects increasing auditor ethical behavior. Intellectual intelligence (IQ) increases auditor ethical behavior. Emotional Intelligence (EQ) increases auditor ethical behavior. Spiritual Intelligence (SQ) does not increase the auditor's ethical behavior.Keywords: Internal Locus of Control, Intellectual Intelligence, Emotional Intelligence and Spiritual Intelligence on the Ethical BehaviorAbstrak. Penelitian ini bertujuan untuk mengatahui dan menganalisis pengaruh faktor-faktor individual yakni locus of control internal, kecerdasan intelektual, kecerdasan emosional dan kecerdasan spiritual terhadap perilaku etis auditor Inspektorat Provinsi Gorontalo. Jenis penelitian ini adalah penelitian kuantitatif. Populasi dalam penelitian ini adalah seluruh pegawai Inspektorat Provinsi Gorontalo dengan sampel penelitian yakni auditor memiliki sertifikasi Jabatan Fungsional Auditor (JFA) yang berjumlah 44 responden. Metode pengumpulan data menggunakan kuesioner dengan menggunakan analisis data regresi berganda dengan bantuan SPSS. Hasil penelitian menunjukkan Locus of Control Internal berpengaruh dalam meningkatkan perilaku etis auditor. Kecerdasan Intelektual (IQ) berpengaruh dalam meningkatkan perilaku etis auditor. Kecerdasan Emosional (EQ) berpengaruh dalam meningkatkan perilaku etis auditor. Kecerdasan Spiritual (SQ) tidak berpengaruh dalam meningkatkan perilaku etis auditor.Kata kunci : Locus of Control Internal, Kecerdasan Intelektual, Kecerdasan Emosional, Kecerdasan Spiritual, Perilaku Etis
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Maradona, Agus Fredy. "Do Individual Risk Attitudes, Experience, and Organizational Culture Influence the Conservatism of Indonesian Auditors?" Jurnal Ilmiah Akuntansi dan Bisnis 15, no. 1 (January 20, 2020): 1. http://dx.doi.org/10.24843/jiab.2020.v15.i01.p01.
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This study examines the effects of individual risk attitudes, professional experiences, and organizational cultures on auditor conservatism in Indonesia. On the basis of a factorial survey involving 153 auditors in three major cities in Indonesia (Jakarta, Surabaya, and Denpasar), this study finds strong evidence that, compared with others, auditors with a lower tendency to take risks and those who have less professional experience tend to be more conservative when performing audit tasks. Nonetheless, this study does not find evidence of the influence of organizational culture on auditor conservatism. Overall, the findings of this study could be of interest to professional associations, regulatory bodies, and other policymakers in Indonesia and other countries as they attempt to constrain aggressive reporting through high-quality independent audits by public accountants in their jurisdictions.
Keywords: Auditor conservatism, risk attitude, experience, organisational culture, auditing standards
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Hay, David, and David Davis. "The Voluntary Choice of an Auditor of Any Level of Quality." AUDITING: A Journal of Practice & Theory 23, no. 2 (September 1, 2004): 37–53. http://dx.doi.org/10.2308/aud.2004.23.2.37.
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We examine the choice of auditor by 380 incorporated societies in New Zealand. Incorporated societies may choose whether to be audited, and are free to choose an auditor of “any level of quality.” We measure audit quality levels, in order of increasing quality, as: (1) whether the entity chooses to be audited, (2) whether the auditor is a qualified or unqualified accountant, (3) whether the qualified accountant is an individual or a chartered accountancy firm, (4) whether the audit firm is large, and (5) whether the large audit firm is a member of the Big 5. We test whether variables representing demand for auditing by incorporated societies are associated with mechanisms that indicate auditor quality to users. We find that larger entities, and entities with higher salaries as a proportion of revenues and higher debt as a proportion of assets are more likely to be audited; they are also more likely to choose chartered accountancy firms and to choose larger audit firms. Entities with a higher proportion of their revenue from members are more likely to choose Big 5 auditors. These results are consistent with DeAngelo's (1981) and Watts and Zimmerman's (1986) explanations for professional auditing institutes, audit firm size, and audit firm reputation as surrogates for auditor quality.
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Feng, Nancy Chun. "Individual auditor characteristics and audit quality: evidence from nonprofits in the US." Journal of Public Budgeting, Accounting & Financial Management 32, no. 4 (July 27, 2020): 551–75. http://dx.doi.org/10.1108/jpbafm-10-2019-0157.
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PurposeUsing a sample of US nonprofit organizations, where the identity of the auditor in charge of the audit is revealed, I investigate whether individual auditor characteristics (gender, engagement size and tenure) are associated with audit quality.Design/methodology/approachTo investigate how individual audit partner characteristics affect audit quality, I follow Petrovits et al. (2011) and Fitzgerald et al. (2018) who investigate client characteristics and partner tenure as determinants of ICDs in nonprofits. I add three characteristics of the auditor in charge – gender, engagement size and tenure – to their models. In additional analyses, I use subsamples partitioned by client risk and audit firm size, and find that individual auditor characteristics generally play a more significant role in the issuance of ICDs and QAOs for riskier clients than for less risky clients.FindingsMy results show that female auditors are more likely to report internal control deficiencies and issue qualified audit opinions (QAOs) to nonprofits. I also find that auditors with more Single Audit engagements within the same year are less likely to report ICDs. In addition, auditor tenure is negatively associated with the likelihood of issuing an ICD report, suggesting that auditors become complacent as the length of the auditor–client relationship lengthens or, alternatively, that they are better able to assist their clients in correcting ICDs and in maintaining stronger internal control environments as they gain client-specific knowledge over time. Additional analysis suggests tenure and engagement load results are sensitive to the sample specification employed.Research limitations/implicationsOne caveat of this study is that self-selection bias may be present when a client chooses an audit firm, the audit firm selects a client, and the audit firm assigns a partner to the engagement. Future study with more advanced econometric models is needed to mitigate self-selection bias. Another limitation is that my sample consists of nonprofit organizations and may not be generalizable to for-profit firms. Another caveat of this study is that the tenure variable is truncated compared to prior literature (e.g. Fitzgerald et al., 2018). Also given the rarity of audit quality measures in the nonprofit setting, internal control deficiencies and qualified opinions are used as proxies for audit quality because they reflect both the quality of audit work and the quality of organizations' internal control and financial reporting. Future studies with data including additional audit quality measures could shed more light on the topic.Originality/valueThis study contributes to the literature in several ways. First, this study offers a more comprehensive examination on the impact that a broader set of individual auditor characteristics on audit quality in the nonprofit setting, compared to Fitzgerald et al.'s (2018) study. Second, the findings should be of interest to policymakers who recently mandated engagement partner disclosures from US audit firms (PCAOB, 2015b). Finally, another distinctive feature of this study is that I examine the impact of individual auditor characteristics on audit quality in a setting where Big 4 audit firms are not dominant.
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Commerford, Benjamin P., Richard C. Hatfield, Richard W. Houston, and Curtis Mullis. "Auditor Information Foraging Behavior." Accounting Review 92, no. 4 (October 1, 2016): 145–60. http://dx.doi.org/10.2308/accr-51628.
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ABSTRACT In this study, we examine how information foraging by auditors affects audit evidence collection in two distinct contexts, and show how a small change to audit methodology mitigates the potentially harmful effects of foraging. Information Foraging Theory explains how, while navigating an information environment, individuals learn to acquire information through personally experiencing the costs incurred and the values obtained from information. Consistent with the theory, we find that auditors react to the immediately felt costs of information collection (e.g., time and effort) at the expense of a more global consideration of information value (i.e., auditors collect lower-quality audit evidence). However, foraging behavior is moderated by removing the personal cost to the individual auditor (identifying audit evidence for another member of the audit team to collect), further demonstrating that these personally felt costs influence auditor choices in a way that reduces the quality of information collected. We contribute to the literature by demonstrating how information foraging can influence evidence quality and, thus, audit quality, and how a slight alteration of audit methodology can mitigate this behavior.
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Qi, Baolei, Bin Li, and Gaoliang Tian. "What Do We Know About The Variance Of Audit Quality? An Empirical Study From The Perspective Of Individual Auditor." Journal of Applied Business Research (JABR) 31, no. 1 (December 15, 2014): 71. http://dx.doi.org/10.19030/jabr.v31i1.8991.
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In this paper, we analyze the variance in audit quality among a broad cross-section of listed firms in Chinese stock market from 1999 to 2012. The purpose of the analysis is to identify the importance of audit firm, audit client, and engagement auditor effects on the variance in audit quality. Using discretionary accruals and financial restatement to surrogate audit quality and based on simultaneous ANOVA method, we find that engagement auditor can add about 19% of incremental explanatory power to the variance in audit quality. As expected, audit firm effects and audit client effects also have significant influence on audit quality, which can add about 2% and 16% of incremental explanatory power to the variance in audit quality. In addition, we find that, relative to engagement auditors with short audit experience, engagement auditors with longer audit experience have no significant incremental power in explaining variance in audit quality. The analysis enriches previous studies by investigating audit clients role and engagement auditors role in determining audit quality. Our study highlights the importance of understanding audit quality from the perspective of individual auditor.
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Wang, Ying-Chieh, Hua Wei Huang, Jeng-Ren Chiou, and Yu Chieh Huang. "The effects of industry expertise on cost of debt: an individual auditor-level analysis." Asian Review of Accounting 25, no. 3 (September 11, 2017): 322–34. http://dx.doi.org/10.1108/ara-08-2014-0092.
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Purpose The purpose of this paper is to examine the association between the cost of debt (COD) and auditor industry expertise using Taiwanese data. Since previous studies (Li et al., 2010) have only examined the relation between industry specialization and COD at the audit firm level in western countries, the authors further examine the association between industry specialization and COD at the individual auditor level in an Asian context. Design/methodology/approach The authors use the interest rate on the firm’s debt as a proxy variable for the COD (Francis, Khurana and Pereira, 2005). The authors adopt three different methods to measure industry specialization, which consist of the auditors’ market share in terms of client sales and number of clients, and client assets. Findings The results indicate that the clients of industry specialists at individual auditor levels have a lower COD. Originality/value First, the authors extend the research of Li et al. (2010) and find that the clients of individual auditor industry specialists also have a lower COD. Second, the authors also believe the evidence on the effects of industry expertise at the individual auditor level may have policy implications for regulators and public investors. Finally, in contrast to works carried out in the US market, the authors provide empirical evidence for the relation between industry specialization and COD in an Asian market.
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Herda, David N., and James J. Lavelle. "How the Auditor-Client Relationship Affects the Extent of Value-Added Service Provided to the Client." Current Issues in Auditing 7, no. 1 (December 1, 2012): P9—P14. http://dx.doi.org/10.2308/ciia-50343.
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SUMMARY This article summarizes our recent study, “Auditor Commitment to Privately Held Clients and its Effect on Value-Added Audit Service” (Herda and Lavelle 2013), which examines how the relationship between individual auditors and their clients affects the extent of value-added services that clients receive. Based on a survey of 204 auditors at two public accounting firms, we find that the auditor-client relationship, measured in terms of the auditor's commitment to the client (i.e., client commitment), develops in response to auditor perceptions of fair treatment and support received from the client. Higher levels of client commitment lead to more value-added services (e.g., management letter comments). The results indicate that auditors' perceptions of client fairness are essential in building strong auditor-client relationships. Stronger relationships yield greater levels of service that go beyond the core audit requirements.
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Herda, David N., and James J. Lavelle. "How Client Identification and Client Commitment Uniquely Influence Auditor Objectivity." Current Issues in Auditing 9, no. 2 (September 1, 2015): P36—P41. http://dx.doi.org/10.2308/ciia-51279.
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SUMMARY This article summarizes our recent study, “Client Identification and Client Commitment in a Privately Held Client Setting: Unique Constructs with Opposite Effects on Auditor Objectivity” (Herda and Lavelle 2015), which examines how individual auditors' identification with, and commitment to, privately held audit clients affects their objectivity. Based on a survey of 102 external auditors, we find that client identification is distinct from client commitment. This distinction is important because identification as a construct is easily and often confused with commitment, and the terms are often used interchangeably. Client identification entails auditors perceiving themselves as one with the client. In contrast, client commitment reflects a responsibility for and dedication to the client, but the auditor and client remain separate psychological entities. Consistent with prior research, we find that client identification impairs auditor objectivity. Conversely, we find that client commitment enhances auditor objectivity.
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Shu, Pei-Gi, Tsung-Kang Chen, Wen-Jye Hung, and Tsui-Lin Chiang. "Economic Dependence and Reputation Concern for the Audit Firm, Audit Groups, and Individual Auditors — The Case of Taiwan." Review of Pacific Basin Financial Markets and Policies 16, no. 02 (May 20, 2013): 1350012. http://dx.doi.org/10.1142/s0219091513500124.
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Using a sample of 3,274 firm-year data from an internationally renowned accounting firm, we investigate the effects of auditor–client relationship on auditor quality (measured by absolute discretionary accruals (ABSDA)) from the perspectives of audit firm, audit group, and individual auditor, respectively. Our empirical results show that after taking account of the client size effect, the client's fee contribution to audit firm and to audit group is positively related to the client firm's ABSDA. The finding that audit firms and audit groups allow their important clients a higher level of ABSDA supports the economic-dependence hypothesis. Moreover, the economic dependence effect is more saliently found prior to the enactment of 2002 Sarbanes–Oxley Act. Furthermore, the other finding that senior individual auditors require their clients a lower level of ABSDA holds the reputation-concern hypothesis. A synopsis of the overall findings indicates that the argument of economic dependence prevails in the analysis of the audit firm and audit group, while the reputation concern prevails in the analysis of the individual auditor.
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Stephan Hayes, Rick, and Richard Baker. "A participant observation study of the resolution of audit engagement challenges in government tax compliance audits." Qualitative Research in Accounting & Management 11, no. 4 (November 11, 2014): 416–39. http://dx.doi.org/10.1108/qram-02-2013-0003.
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Purpose – The aim of this paper is to extend the prior auditing literature by examining audit engagement challenges arising during government tax compliance audits. The prior auditing literature has examined how audit engagement challenges have been resolved through auditor/auditee negotiations. Design/methodology/approach – The empirical evidence for the paper was gathered during a participant observation study conducted by the primary researcher over a period of six years while working as an auditor for the Alcohol and Tobacco Tax and Trade Bureau (TTB) of the US Department of Treasury. Findings – This paper discusses various challenges faced by government auditors and how these challenges were resolved. The path to resolution was not always clearly marked. Resolution depended a great deal on the individual auditor’s judgment, interpretation of the Code of Federal Regulations (CFRs), and the willingness of the auditee to change the methods and techniques they use in operating and reporting wine operations. Materiality was determined by compliance with the regulation criteria [CFRs and the US Code (USC)] – any non-compliance was considered to be material. Resolution of many of the challenges resulted in an increased payments of excise taxes or penalties by the auditee entities. In other cases, the audit agency allowed the auditees to agree to change or amend their practices to correct a violation or a lack of compliance with US federal government regulations. As such, while the difference in the role and status of the government tax compliance auditor as compared with the independent external auditor did not necessarily lead to a different set of audit procedures, the pattern of communications between the auditor and the auditee in a government tax compliance audit were quite different from an external audit of financial statements. The government tax compliance environment is often complex, but the auditor may draw on a number of sources of knowledge and communication: CFRs, USC, Generally Accepted Government Auditing Standards, national audit planning, national experts, winery management, local peers, local government supervision, legal counsel and other auditors. Originality/value – The primary contribution of the paper lies in the fact that little or no prior research in auditing has been conducted using participant observation as a research methodology. The use of participant observation provides new perspectives on the resolution of audit engagement challenges and auditor/auditee communication and negotiation.
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Sun, Jerry, Steven F. Cahan, and Jing Xu. "Individual Auditor Conservatism After CSRC Sanctions." Journal of Business Ethics 136, no. 1 (December 21, 2014): 133–46. http://dx.doi.org/10.1007/s10551-014-2514-z.
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Herda, David N., and James J. Lavelle. "Client Identification and Client Commitment in a Privately Held Client Setting: Unique Constructs with Opposite Effects on Auditor Objectivity." Accounting Horizons 29, no. 3 (March 1, 2015): 577–601. http://dx.doi.org/10.2308/acch-51091.
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SYNOPSIS In this paper, we examine individual auditors' identification with, and commitment to, privately held clients, and their effects on auditor objectivity. Client identification reflects the extent to which an auditor's self-concept and self-definition are derived from a perceived oneness with the client. In contrast, client commitment reflects a responsibility for and a dedication to the client, but the auditor and client remain separate psychological entities. Drawing from the unique perspectives of social identity theory and social exchange theory, we hypothesize and find that client identification is distinct from client commitment. Further, we hypothesize and find that client identification and client commitment have different effects on auditor objectivity. Specifically, client identification is negatively related to auditor objectivity, whereas client commitment is positively related. The findings of this study apply predominantly to the audit of private companies where clients are more likely to exert influence over auditors and auditors may be less likely to withstand client pressures. Data Availability: Please contact the first author.
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Rennie, Morina D., Lori S. Kopp, and W. Morley Lemon. "Exploring Trust and the Auditor-Client Relationship: Factors Influencing the Auditor’s Trust of a Client Representative." AUDITING: A Journal of Practice & Theory 29, no. 1 (May 1, 2010): 279–93. http://dx.doi.org/10.2308/aud.2010.29.1.279.
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SUMMARY: This research examines financial statement auditors’ trust of members of client management in the context of a disagreement. In this descriptive field study involving 48 partners and 23 managers of Canadian offices of international accounting firms, we explore factors that can influence an auditor’s trust of client management. We find that a client representative’s openness of communication and demonstration of concern during an auditor-client disagreement are positively associated with the trust that an auditor feels for that individual. We also find that aspects of the auditor-client relationship are associated with auditor trust. Responses to general questions about trust and auditing indicate that our auditors believe it is important to trust their clients and that they attempt to ensure that trust does not impede professional skepticism, primarily through a rigorous audit process and the adoption of an independent attitude.
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Chen, Shimin, Sunny Y. J. Sun, and Donghui Wu. "Client Importance, Institutional Improvements, and Audit Quality in China: An Office and Individual Auditor Level Analysis." Accounting Review 85, no. 1 (January 1, 2010): 127–58. http://dx.doi.org/10.2308/accr.2010.85.1.127.
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ABSTRACT: This study examines how the legal and regulatory changes in China affect the relationship between client economic importance and audit quality. At the individual auditor level, we find that the propensity to issue modified audit opinions (MAOs) is negatively correlated with client importance from 1995 to 2000. However, from 2001 to 2004, when the institutional environment became more investor-friendly, the propensity to issue MAOs is positively associated with client importance. These findings are corroborated by an analysis of regulatory sanctions. Although client importance measured at the office level is also negatively related to the propensity for MAOs from 1995 to 2000 without controlling for the auditor-level client importance, this result is sensitive to model specification and sample composition. Our results suggest that (1) institutional improvements prompt auditors to prioritize the costs of compromising quality over the economic benefits gained from important clients; and (2) the impact of client importance on audit decisions appears to be different at the individual auditor and office levels.
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Bianchi, Pietro A., Diana Falsetta, Miguel Minutti-Meza, and Eric Weisbrod. "Joint Audit Engagements and Client Tax Avoidance: Evidence from the Italian Statutory Audit Regime." Journal of the American Taxation Association 41, no. 1 (June 1, 2018): 31–58. http://dx.doi.org/10.2308/atax-52151.
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ABSTRACT Under the Italian statutory audit regime, three individual accountants are jointly appointed to audit each client's annual financial statements and sign off on the tax return. These individuals can belong to the same or different accounting firms and through multiple and repeated collaborations they form a professional network. We use network measures of centrality to capture individuals' ability to acquire and apply tax expertise across clients. We demonstrate that clients engaging better-connected individual auditors have comparatively lower effective tax rates. Our results are robust to controlling for a number of client, individual, and accounting firm characteristics, as well as for alternative network connections between clients. We also use instrumental variables, individual fixed effects, and matching to mitigate the effect of endogenous pairing of clients and auditors. Our findings demonstrate that in a joint audit environment, individual auditor professional networks have consequences for tax outcomes. Data Availability: Data are obtainable from the public sources cited in the text and are available upon request.
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Sudibyo, Yvonne Agustine. "PENGARUH HUMAN CAPITAL TERHADAP KINERJA AUDITOR (STUDI EMPIRIS PADA KANTOR AKUNTAN PUBLIK DI JAKARTA)." Media Riset Akuntansi, Auditing dan Informasi 14, no. 2 (August 21, 2017): 15. http://dx.doi.org/10.25105/mraai.v14i2.2054.
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<p>The purpose of this research were to analyze individual capability, individual<br />motivation, leadership factor, organizational climate will influence the public<br />accountants’ performances in CPA Firm at DKI Jakarta. Data were collected by<br />distributing questionnaires to external auditors working at CPA Firm and only 127<br />respondents returned and used in this research. The result of this research showed that<br />individual capability, individual motivation and workgroup effectiveness have no<br />influence on auditor performane, but significant influence from leadership and<br />organizational climate. Future research should consider the experience of auditor in<br />demographic respondent and used sample CPA from other big cities.</p>
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Pennington, Robin, Jennifer K. Schafer, and Robert Pinsker. "Do Auditor Advocacy Attitudes Impede Audit Objectivity?" Journal of Accounting, Auditing & Finance 32, no. 1 (July 26, 2016): 136–51. http://dx.doi.org/10.1177/0148558x16641862.
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Biased evaluation of evidence exists when an auditor either over-emphasizes evidence that supports management assertions or over-emphasizes evidence against management assertions. This study examines if an auditor’s advocacy attitudes lead to bias in information search for audit evidence. We measure the range of advocacy attitudes of individual auditors and hypothesize that auditors at either end of the advocacy spectrum may impede the objectivity of evidence gathered. Results from 60 Big 4 auditors indicate that advocacy attitudes affect both initial judgments and consequent search strategies of auditors. When initial judgments are client-favorable, all auditors exhibit search strategies focused on finding evidence to take a more conservative position; however, when initial judgments represent an unfavorable client position, auditors with lower advocacy attitudes exhibit a stronger tendency to search for additional evidence against a client-favorable position, consistent with a confirmation bias. Conversely, auditors with more neutral attitudes plan a more objective search effectively mitigating the bias. Aggregate findings establish an important link between bias and information search that may manifest itself in auditor training procedures and be of interest to auditing regulators.
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Koch, Christopher, and Steven E. Salterio. "The Effects of Auditor Affinity for Client and Perceived Client Pressure on Auditor Proposed Adjustments." Accounting Review 92, no. 5 (February 1, 2017): 117–42. http://dx.doi.org/10.2308/accr-51703.
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ABSTRACT This paper examines how auditors' judgments about accounting policies may differ when experiencing different levels of affinity for client management and facing different levels of pressure from client management. The theory of motivated reasoning is employed to analyze the effects of these two factors that should lead individual auditors to adopt as a directional goal the acceptance of client management's aggressive accounting. Accordingly, we predict and find that auditors experiencing greater client affinity and facing explicit client pressure suggest lower adjustments to clients' aggressive accounting, consistent with motivated reasoning's goal-related predictions. But our study goes further and investigates also how auditors react when motivated reasoning theory's “reasonableness constraint” is potentially violated by auditors who perceive excessive client pressure. We predict and find, consistent with the individual auditor's “reasonable constraint” being triggered in at least some auditors, that perception of client pressure intensity leads those auditors to propose larger adjustments to client accounting. To support our findings, we re-analyze the data from a prior motivated reasoning audit experiment, replicate that study's reported directional goal results employing methods used in this study and, in addition, find similar results to those found in this study for increased client pressure intensity on auditor judgment.
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Li, Liuchuang, Baolei Qi, Gaoliang Tian, and Guochang Zhang. "The Contagion Effect of Low-Quality Audits at the Level of Individual Auditors." Accounting Review 92, no. 1 (February 1, 2016): 137–63. http://dx.doi.org/10.2308/accr-51407.
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ABSTRACT This study examines the relation between the audit failures of individual auditors and the quality of other audits performed by these same auditors. Employing a Chinese setting where audit reports reveal the identities of engagement auditors, we find that auditors who have performed failed audits also deliver lower-quality audits on other audit engagements, with this “contagion” effect spreading both over time and to other audits performed by these same auditors in the same year. However, we find little evidence that an audit failure also casts doubt on the quality of audits performed by “non-failed” auditors who are same-office colleagues of a “failed” auditor. We further discover that the contagion effect is attenuated for female auditors, auditors holding a master's degree, and auditors with more auditing experience. Our results underscore the usefulness of disclosing the identity and personal characteristics of individual auditors to investors and regulators.
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Hatchard, John. "THE ROLE, INDEPENDENCE AND ACCOUNTABILITY OF THE AUDITOR GENERAL: A COMPARATIVE CONSTITUTIONAL ANALYSIS." Denning Law Journal 30, no. 2 (August 8, 2019): 51–77. http://dx.doi.org/10.5750/dlj.v30i2.1698.
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The Auditor General plays a key role in the constitutional framework that is designed to support good governance. This article critically reviews the constitutional position of the Auditor General. It assesses the extent to which, in practice, office-holders enjoy the necessary individual and institutional independence and security of tenure to enable them to carry out their constitutional mandate, especially in the face of efforts by some political leaders and senior public officials (‘politically exposed persons’ (PEPs)) to abuse their position through acts of corruption and misuse of public office. It also explores the effectiveness of the support and accountability mechanisms for Auditors General. In doing so, the article reviews the position of the Auditor General in the constitutions of a number of Anglophone African states.
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Putri, Fanani Sari. "Pengaruh Terpaan Berita Suap Pemeriksa di Detik. Com terhadap Sikap Pemeriksa Pada Badan Pemeriksa Keuangan Republik Indonesia Perwakilan Provinsi Sumatera Utara." JURNAL SIMBOLIKA: Research and Learning in Communication Study 5, no. 1 (April 28, 2019): 86. http://dx.doi.org/10.31289/simbollika.v5i1.2259.
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The objective of the research was to analyze the influence of news reporting about the case of bribery to the investigator of BPK RI (The Audit Board of the Republic of Indonesia) on Detik.com on the attitude of the auditors at BPK RI in North Sumatera Province, and to analyze the influence of individual as well as social factors on the auditors’ attitude in carrying out the ethical code of auditing. It employed quantitative approach with correlational method using SPSS. Total Sampling technique was applied to collect the samples; indicating that the whole population was taken as the samples, namely 98 respondents. The result of the research showed that there was positive impact and significant correlation. The results of the research demonstrated that the news reporting by its frequency, duration, credibility, content and design about the bribery case of an auditor of BPK RI influenced the attitude of the auditors in carrying out auditing procedures and there were individual and social factors as the control variables which increased the correlation and influenced the attitude of the auditor.
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Tanyi, Paul, K. Raghunandan, and Abhijit Barua. "Audit Report Lags after Voluntary and Involuntary Auditor Changes." Accounting Horizons 24, no. 4 (December 1, 2010): 671–88. http://dx.doi.org/10.2308/acch.2010.24.4.671.
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SYNOPSIS: We find that the audit report lag is significantly higher for former Andersen clients (that did not follow their Andersen partner to the new audit firm) than for clients voluntarily changing auditors from another Big 5 predecessor for the fiscal year ended December 31, 2002 (the first year with the new auditor for ex-Andersen clients). The differences in audit reporting lags between the two groups are not significant for fiscal years ended December 31, 2000 (the last year before Andersen’s Enron related problems surfaced), or 2003 (the second year with the successor auditor). We also find that clients with voluntary (i.e., non-Andersen) auditor changes have only marginally higher audit reporting lags compared to clients without auditor changes. Our results, focusing on a cost component of involuntary auditor changes, thus provide relevant empirical evidence for debates surrounding mandatory auditor rotation. We also find that ex-Andersen clients that followed the Andersen partner to the new audit firm had shorter audit report lags than ex-Andersen clients that did not follow their Andersen partner. Our findings highlight the importance of individual relationships in the auditing process, and suggest new avenues for future research.
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Sahla, Widya Ais, and Emy Iryanie. "Perception of Locus of Control, Level of Education, Machiavellianism and Ethical Reasoning Against Auditor Behavior in Audit Conflict Situations." AKRUAL: Jurnal Akuntansi 10, no. 1 (October 29, 2018): 15. http://dx.doi.org/10.26740/jaj.v10n1.p15-26.
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This study aims to examine individual factors such as locus of control (LOC), level of education, Machiavellianism and ethical reasoning that may influence the behavior of auditors in conflict situations. The survey was conducted by using questionnaires to auditors working at Public Accounting Firm in South Kalimantan. The analysis technique used is with multiple regressions. The results show that individual factors such as locus of control (LOC), level of education, Machiavellianism and ethical reasoning have been shown to significantly affect auditor behavior in conflict situations.
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Eldridge, Susan, Wikil Kwak, Roopa Venkatesh, Yong Shi, and Gang Kou. "Predicting Auditor Changes With Financial Distress Variables: Discriminant Analysis And Problems With Data Mining Approaches." Journal of Applied Business Research (JABR) 28, no. 6 (October 25, 2012): 1357. http://dx.doi.org/10.19030/jabr.v28i6.7349.
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Our study extends previous research that uses financial distress factors in predicting auditor changes by evaluating the effectiveness of the traditional discriminant analysis model, not used in previous auditor change studies, and by highlighting the importance of evaluating the likelihood that data mining approach classification results occurred by chance. Significance of individual predictor variables, as well as of the full set of 13 financial variables, can be tested using discriminant analysis. Kwak et al. (2011) document overall classification accuracy rates ranging from 61 to 63.5 percent for the four data mining models they compared but did not address whether these rates occurred by chance. Using Kwak et al.s (2011) data set of firms changing auditors in 2007 or 2008 and matching non-auditor change firms, our discriminant analysis test results show overall accuracy rates of less than 56 percent and true positive rates over 85 percent, but these rates are influenced by a disproportionate number of non-auditor change firms being classified as auditor change firms. Individual predictor variables that are important in the discriminant equation based on standardized canonical coefficients include losses (LOSS) and no payment of dividends (DIV) in the year prior to the auditor change, retained earnings as a percent of total assets (RE/TA), and earnings before interest and taxes as a percent of total assets (EBIT/TA). The Kappa statistic and AUC metrics for all 13 data mining algorithms we used indicate that classifications using these algorithms are no better than random classifications.
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Jeffrey, Cynthia, William Dilla, and Nancy Weatherholt. "The Impact of Ethical Development and Cultural Constructs on Auditor Judgments: A Study of Auditors in Taiwan." Business Ethics Quarterly 14, no. 3 (July 2004): 553–79. http://dx.doi.org/10.5840/beq200414322.
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Abstract:This research examines in a collectivist culture the influence of cognitive moral development, attitudes toward rule-directed behavior, and the perceived importance of codes of conduct and professional standards on auditor judgments about ethical dilemmas. Taiwanese audit professionals were asked to respond to two ethical dilemmas. The first dilemma concerns a situation in which the auditor is asked to acquiesce to a controller’s request to conceal an irregularity. The probability that the auditor’s acquiescence is discovered (i.e., the threat of a sanction) was manipulated in this scenario. The second dilemma involves a case in which the auditor has information that a write-down of obsolete inventory will have a material effect on the earnings of a corporation, and must consider whether or not to inform an individual who is heavily invested in the corporation. The individual’s ingroup status (i.e., whether the individual was a relative or friend of the auditor) was manipulated in this scenario.Auditors were more likely to agree with violations of ethical standards in the first scenario (concealing a client employee’s irregularity) than in the second (revealing confidential information to parties outside the client). In the first scenario, auditors with lower levels of cognitive moral development were less likely to agree with violations of ethical standards when the threat of a sanction was present, while the judgments of those with higher levels of cognitive moral development were not affected by the presence of sanctions. Contrary to expectations, auditors were more likely to agree with violations of ethical standards when the individual involved was a close friend, rather than a relative. In general, as the perceived importance of rules increased, the propensity to violate the Code of Conduct decreased.
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Diaz, Jamie, Gregory W. Martin, and Wayne B. Thomas. "Financial Reporting Quality and Auditor Locality Contagion." AUDITING: A Journal of Practice & Theory 36, no. 4 (February 1, 2017): 71–87. http://dx.doi.org/10.2308/ajpt-51694.
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SUMMARY Research in information economics seeks to understand how the actions of one individual affect the decisions of related individuals. We examine this issue in the context of information contagion between audit offices in the same locality. Specifically, we investigate whether contagion among Big N audit offices in the same metropolitan statistical area (MSA) causes their client firms' financial reporting quality to correlate. We document a relation between overstatement of earnings for one firm (as evidenced by a subsequent restatement) and higher abnormal accruals for another firm in that same year, where both firms' auditors are located in the same MSA. The correlation in reporting quality is consistent with contagion in practices between auditors. We also find evidence that auditor competition is one channel through which information contagion occurs. The between-audit office contagion we document is incremental to within-audit office contagion documented by prior research. Our evidence is important in understanding additional factors related to the quality of auditing and financial reporting and thus should be relevant to audit committees, regulators attempting to improve audit quality, and stakeholders in general.
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He, Haohao. "A Discussion of the Individual Auditor Who Have Been Punished and Audit Quality." Research in Economics and Management 3, no. 1 (March 13, 2018): 68. http://dx.doi.org/10.22158/rem.v3n1p68.
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<p><em>High quality independent audit can enhance the reliability of financial statement information, reduce the cost of principal-agent and improve the efficiency of market resource allocation. In China, the audit report should be signed and sealed by </em><em>auditor</em><em>. This means that audit liability can be traced directly to signed </em><em>auditor</em><em> individuals</em><em>, it is even more important to carry out the research on individual audit behavior and audit quality of signed auditor. The research contribution of this paper is to expand the relevant research on auditor discipline, and to deduce from “prior research” through theory. It is found that the low-quality audit behavior is a special case caused by the chartered accountant</em><em>’</em><em>s personal characteristics.</em></p>
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Daugherty, Brian, and Daniel G. Neely. "Koss Corporation Case: Trouble in Brew City." Issues in Accounting Education 26, no. 3 (August 1, 2011): 547–68. http://dx.doi.org/10.2308/iace-50004.
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ABSTRACT This instructional case provides auditing students an opportunity to examine an interesting real-life embezzlement and financial statement fraud occurring at a publicly traded company in the post-Sarbanes-Oxley (SOX) era. The case focuses on independent auditors' and senior management's reporting responsibilities related to internal control over financial reporting involving smaller public companies (nonaccelerated filers). While all public companies are subject to external auditor and management attestation on the effectiveness of internal control over financial reporting following SOX, the Securities and Exchange Commission (SEC) granted nonaccelerated filers numerous extensions for the effective date of required auditor attestation. In 2010, President Obama signed legislation to permanently exempt nonaccelerated filers from auditor attestation. The case also highlights inherent risk assessments by the independent auditor when one individual holds multiple C-level titles (Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, etc.) within the organization concurrent with membership on the board of directors, and requires students to recommend internal control policies and procedures designed to prevent or detect the embezzlement.
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Reheul, Anne-Mie, Tom Van Caneghem, Machteld Van den Bogaerd, and Sandra Verbruggen. "Auditor gender, experience and reporting in nonprofit organizations." Managerial Auditing Journal 32, no. 6 (June 5, 2017): 550–77. http://dx.doi.org/10.1108/maj-01-2016-1296.
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Purpose The purpose of this study is to investigate the association between individual auditor characteristics (gender, experience and sector expertise) and audit opinions in Belgian non-profit organizations (NPOs). The purpose is to identify auditor characteristics that imply a better assurance of financial statement (FS) quality. FS quality is essential to enhance financial accountability toward the resource providers of NPOs and the public at large. Design/methodology/approach Multinomial regressions are conducted on a data set of Belgian NPOs. Propensity score matching is used to control for potential self-selection bias. Findings Auditors with sector expertise are found to provide better assurance than their non-sector-expert counterparts. The former are more likely to disclose FS errors and uncertainties in their audit report. Originality/value This study contributes to the auditing literature by focusing on an understudied audit market, namely, the non-profit audit market. The number of non-profit studies that investigate determinant of audit quality is very scarce, and none of them explores the determinants of audit opinions. Moreover, these studies ignore individual auditor characteristics as determinants of audit quality. The findings of this study provide meaningful information for several actors in the NP field and for audit firms.
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Herda, David N., and James J. Lavelle. "Auditor Commitment to Privately Held Clients and its Effect on Value-Added Audit Service." AUDITING: A Journal of Practice & Theory 32, no. 1 (September 1, 2012): 113–37. http://dx.doi.org/10.2308/ajpt-50309.
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SUMMARY This study examines auditor commitment to clients and how it affects the level of value-added audit service (e.g., management letter comments) provided to the clients. Our research model is based on social exchange theory. Using a sample of 204 auditors at two public accounting firms that principally serve privately held clients, we find that perceived fair treatment by the client predicts perceived support from the client, and perceived support predicts auditor commitment to the client. We find that client commitment is positively associated with the extent of value-added audit service provided to the client. The results highlight the important role that perceptions of client fairness play in engendering social exchange relationships between individual auditors and clients. Higher-quality relationships lead to higher levels of service that go beyond the basic requirements of the audit itself.
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Suprapto, Fitria Magdalena, and Wawan Cahyo Nugroho. "Pengaruh Kompleksitas Tugas Terhadap Kualitas Audit Dengan Disfungsional Auditor Sebagai Variabel Moderasi." Akuntabilitas 13, no. 2 (November 9, 2020): 151–64. http://dx.doi.org/10.15408/akt.v13i2.17364.
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The auditor is the most important part of the assessor component of an organization’s financial statements. People who need financial information as a basis for making decisions expect the independence of public accountants in assessing financial statements so that in order to maintain reputation, auditors are always required to be careful in maintaining audit quality. This study aims to examine the effect of task complexity on audit quality with auditor dysfunctionality as a moderating variable. The research sample used auditors who work in KAP located in Surabaya with the sampling technique using purposive sampling method. The source of research is the primary which comes from the collection of survey on respondents to obtain individual opinion. There are 66 questionnaires that meet the criteria to be sampled. Hypothesis testing uses linear regression and moderated regression analysis. The results showed that task complexity had an effect on audit quality. Dysfunctional auditors are not able to moderate the complexity of the task on audit quality
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Mintoyuwono, Danang. "ANALISA PERAN MODERASI AUDIT TENURE DALAM HUBUNGAN ANTARA ORIENTASI KESALAHAN INDIVIDU DAN IKLIM KESALAHAN ORGANISASI TERHADAP PENANGANAN KESALAHAN PADA AUDITOR INSPEKTORAT KEMENTERIAN DI INDONESIA." Equity 18, no. 2 (June 19, 2019): 193. http://dx.doi.org/10.34209/equ.v18i2.468.
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The auditor’s error handling strategy as auditor behavior after detecting an auditee’s error has significant impact on repeat error finding especially unintentional errors. The purpose of this study was to investigate factor determining error management as auditor error handling strategy from organizational and individual aspect also investigate moderation role of audit tenure. 103 government auditor involve in this study as respondent collecting via convenience sampling, with linear regression and interaction moderated regression as data analysis method. Result of this study shows both organizations’ error climate and person’s individual error orientation has positive significant impact on error management as auditor error handling strategy otherwise moderation of audit tenure have no empirical evidence. Thus error management is conducting by auditor in an open climate organization with greater person’s individualerror orientation.
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Farmer, Timothy A. "Testing the Effect of Risk Attitude on Auditor Judgments Using Multiattribute Utility Theory." Journal of Accounting, Auditing & Finance 8, no. 1 (January 1993): 91–110. http://dx.doi.org/10.1177/0148558x9300800106.
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The scaling constant of multiattribute utility functions derived for each of 15 practicing auditors was used to measure risk attitude for the subjects. The risk preference or risk aversion indicated by this metric allowed categorization of the auditors to test for an effect of risk attitude on audit judgments. The sample showed both risk aversion and risk preference among the auditors. The correlations among auditor evaluations of hypothetical internal control compliance test results were generally high and were different for audit seniors than for audit managers. Risk attitude was not found to explain the differences across rank nor the individual differences in consensus.
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Saadah, Naili, and Samroh Samroh. "Love of Money, Religiosity, and Gender: How do These Affect the Ethical Perceptions of Public Accountants?" Accounting Analysis Journal 10, no. 1 (March 15, 2021): 71–77. http://dx.doi.org/10.15294/aaj.v10i1.44736.
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Ethics has always been an interesting issue to discuss in any discussion related to the professionalism of the world of accounting and auditing. Public scepticism towards the accounting profession is quite reasonable since there are not a few auditors and public accountants involved with financial scandals. Money for an individual is like a double-edged knife, on the one hand, it is a need, but it can also be a root of greed, no exception for an auditor. Therefore, this study aims to determine the effect of love of money on the ethical perceptions of public auditors. Whether there is an influence of the love of money on the ethical perceptions of public auditors and how does this affect it when faced with one’s religiosity and gender. Using the object of the research of auditors who are members of the public accounting firm in Semarang city, this research succeeded in collecting a sample of 43 auditors with the criteria of having had at least three years of experience as an auditor. The results prove that love of money has a direct effect on the ethical perceptions of public auditors. However, when the feeling of love of money is faced with religiosity and gender, it does not significantly influence auditors’ ethical perceptions. Therefore, it can be concluded that love of money is one’s attitude in general which is reflected in the behaviour of an auditor so that one’s love of money can directly influence an auditor’s ethical perception.
Keywords: Love of Money; Religiosity; Gender; Ethical Perceptions
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Alexeyeva, Irina. "Individual auditor competences and the pricing of audit services." International Journal of Accounting, Auditing and Performance Evaluation 15, no. 2 (2019): 191. http://dx.doi.org/10.1504/ijaape.2019.099147.
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Alexeyeva, Irina. "Individual auditor competences and the pricing of audit services." International Journal of Accounting, Auditing and Performance Evaluation 15, no. 2 (2019): 191. http://dx.doi.org/10.1504/ijaape.2019.10020405.
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Mogi, Aileen Janet, and Sifrid Pangemanan. "PENGARUH GAYA KEPEMIMPINAN, LOCUS OF CONTROL TERHADAP KINERJA INTERNAL AUDITOR (PENELITIAN PADA PT. BANK SULUT DAN PT. BNI, TBK)." ACCOUNTABILITY 2, no. 1 (August 13, 2013): 93. http://dx.doi.org/10.32400/ja.2347.2.1.2013.93-103.
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In facing the environment change, a company should level up the effectiveness of management control to achieve the final goal between the individual and the organization. That is why a leader should be able to motivate the subordinates so the goal can be achieved. Besides leadership style, locus of control also affects the internal auditor performance. Internal Auditor performance is one of the important indicators to reach the banking company success that is the reason why the researcher is interested with the title of this final task.This research is aimed to know the influence of leadership style and locus of control on the internal auditor performance. This research was done at 2 ( two) banking companies, those are PT. Bank SULUT and PT. BNI, Tbk. In this research the independent variable ( X ) are the leadership style ( X1 ) and locus of control ( X ) ; meanwhile the dependent variable ( Y ) is performance ( Y ) . The data collection method used is through survey and questioner with a list of questions. It would be answered by the respondents and those are the internal auditors. The technique used in data analysis to test the hypothesis was done by using the double linear regression analysis and processed through SPSS program Version 19.0. The result shows that the leadership style partially does not have an effect on the performance of internal auditor but the locus of control has an effect on the internal auditor performance. But simultaneously, the leadership style and locus of control influence the performance of internal auditor.2Key words: Leadership style, Locus of control, and The Performance of Internal Auditor.
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Wibowo, Ery. "PENGARUH GENDER, PEMAHAMAN KODE ETIK PROFESI AKUNTAN TERHADAP AUDITOR JUDGMENT." MAKSIMUM 1, no. 1 (October 25, 2013): 14. http://dx.doi.org/10.26714/mki.1.1.2010.14-23.
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Ada berbagai variasi faktor individual yang mempengaruhi audit judgment dalam melaksanakan review selama proses pelaksanaan audit (Solomon dan Shields,1995), dan pengaruh faktor individual ini berubah-ubah sesuai dengan kompleksitas tugas, Tan and Kao (1999), dan Libby (1995). Dalam penelitian lain, Pflugrath Gary (2007) dibuktikan bahwa pemahaman kode etik juga mempengaruhi audit judgment. Sementara itu dalam penelitian ini ingin membuktikan bahwa ada perbedaan pemahaman kode etik profesi antara auditor laki-laki dan perempuan, yang akan mempengaruhi audit judgment Jenis penelitian yang digunakan adalah penelitian lapangan (field research), yaitu penelitian yang dilakukan dengan mengumpulkan data melalui survei di lapangan. survei dimaksudkan untuk memperoleh gambaran tentang faktor-faktor individu seperti pemahaman kode etik profesi akuntan dan gender yang mempengaruhi auditor judgment. Desain penelitian bersifat penjelasan (explanatory research) yaitu menjelaskan hubungan kausalitas antara variabel independen dan variabel dependen. Populasi dalam penelitian ini adalah auditor yang bekerja pada Kantor Akuntan Publik (KAP) yang ada di kota Semarang. Auditor junior ini adalah auditor yang bekerja di KAP tidak lebih dari tiga tahun dengan alasan untuk karyawan-karyawan baru yang memulai karirnya sebagai auditor pemula atau auditor junior akan bertugas pada setiap jenjang kerja selama 2-3 tahun sebelum mencapai kedudukan sebagai rekan (Arens dan loebbecke, 1996). Kata Kunci : auditor judgment, kode etik profesi, gender.
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Mindarti, Ceacilia Sri. "Pengaruh Karakteristik Individu Terhadap Kinerja Auditor." Jurnal Ekonomi dan Bisnis 18, no. 3 (June 18, 2016): 59. http://dx.doi.org/10.24914/jeb.v18i3.286.
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<p><em>This study aims to analyze the influence of individual characteristics of auditors in terms of locus of control and organizational commitment to the performance of auditors. The theories that be used in this study are attribution theory and goal setting theory. Auditors in a public accounting firm in Indonesia with a minimum term of one year are selected as samples in this study. The research data were collected by questionnaires, which were processed using regression analysis. The results showed that individual characteristics which are locus of control and organizational commitment were influenced the performance of auditors. The results will contribute to the development of the auditing literature, especially regarding to the influence of individual characteristics on the auditor’s performance as well as performance of auditors.</em></p>
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Marques, Ana, and Ana Pinto. "Procurement Practices and the Municipality Auditing Market." Journal of Accounting, Auditing & Finance 34, no. 4 (March 13, 2018): 524–45. http://dx.doi.org/10.1177/0148558x18761294.
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In this study, we perform a comprehensive analysis of municipal auditing, exploring its several steps: procurement, decision on selection criteria, selection, render and payment of services, and opinion provided. Our setting is Portugal, where external auditing of municipalities’ accounts has recently been introduced. Our dataset is unique, resulting from merging new survey data with data that are not publicly available. We find that the majority of municipalities acquire auditing services through direct selection and choose their auditors based upon the lowest price selection criterion. However, municipalities which employ a more sophisticated procurement process, where political competition is lower and where citizens’ interest is higher, employ the lowest price selection criterion less frequently. The auditor selected is usually a firm (instead of an individual Certified Public Accounting [CPA]) but never one of the Big 4 companies. The audit fee paid for the auditing services is higher when the level of citizens’ interest increases, and lower when the municipality has an internal auditing office. Finally, when the auditor issues a qualified opinion, the auditor fee is also higher.
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Chen, Wei, Amna Saeed Khalifa, and Ken T. Trotman. "Facilitating Brainstorming: Impact of Task Representation on Auditors' Identification of Potential Frauds." AUDITING: A Journal of Practice & Theory 34, no. 3 (November 1, 2014): 1–22. http://dx.doi.org/10.2308/ajpt-50986.
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SUMMARY Individual auditor brainstorming is an important input to group brainstorming. In a setting where multiple potential frauds exist, we examine the effect of brainstorming task representation (simultaneous versus sequential unpacking of potential frauds) on individual auditors' identification of potential frauds and fraud risk assessments. Results from an experiment with experienced auditors show that the sequential unpacking of the brainstorming task into risk categories (potential frauds identified for each category individually) leads to a greater quantity and quality of potential frauds identified by auditors compared to the simultaneous unpacking (potential frauds identified for the categories together). Additional analysis suggests that the positive effect of sequential unpacking on the quality of frauds identified persists when auditors subsequently receive frauds identified by other team members. We also find a potential negative effect of sequential unpacking as it reduces auditors' fraud risk assessments thus potentially reducing the level of professional skepticism. Data Availability: Contact the authors.
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Hardies, Kris. "Auditor independence impairment: bonding between clients and individual engagement partners." Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad 49, no. 4 (October 15, 2019): 427–51. http://dx.doi.org/10.1080/02102412.2019.1667177.
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Arieftiara, Dianwicaksih, and Pujiono Pujiono. "THE EFFECT OF ENVIRONMENT ANDAUDITOR INDIVIDUAL FACTORS ON AUDITOR JUDGMENT." Journal of Economics, Business, and Accountancy | Ventura 16, no. 3 (October 10, 2013): 527. http://dx.doi.org/10.14414/jebav.v16i3.217.
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Brown, Veena L., Jodi L. Gissel, and Daniel Gordon Neely. "Audit quality indicators: perceptions of junior-level auditors." Managerial Auditing Journal 31, no. 8/9 (September 5, 2016): 949–80. http://dx.doi.org/10.1108/maj-01-2016-1300.
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Purpose In an effort to develop an audit quality (AQ) framework specific to the US audit market, the Public Company Accounting Oversight Board (PCAOB) recently issued a concept release proposing 28 audit quality indicators (AQIs) along three dimensions: audit professionals, audit process and audit results. Using AQIs initially proposed by the PCAOB, as well as AQIs suggested by prior literature, the authors solicit perceptions from junior-level (senior and staff) auditors to investigate the current state of practice along many of the AQIs relating to audit professionals and audit process. Design/methodology/approach In the study, 78 junior-level auditors responded to the survey. Findings An analysis of the responses suggests auditors engage in activities and audit firms promote conditions that at times improve, and at other times, reduce audit quality. The authors find that individual auditors’ perceptions differ across experience level, gender and audit firm size for certain AQIs. Practical implications The study is useful to the PCAOB because it provides insights to help assess the value of potential AQIs in differentiating AQ. The study is also useful to other regulators because it describes audit staff and seniors’ perceptions of apparent firm and auditor compliance with accounting and auditing standards. Practitioners should find this information useful in helping to identify possible root causes of audit deficiencies, a challenge put forth to firms by the PCAOB. Originality/value This study provides academia with evidence on AQ from practicing auditors, which informs existing and future research along. The study complements existing work by showing how individual auditor characteristics (experience and gender) at the junior levels may impact AQ in practice
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Supriatna, Nono. "PENGARUH HUMAN CAPITAL TERHADAP KINERJA AUDITOR PADA KAP YANG ADA DI BANDUNG." Jurnal Riset Akuntansi dan Keuangan 1, no. 2 (April 29, 2017): 88. http://dx.doi.org/10.17509/jrak.v1i2.6644.
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This study is based on the importance of accountant professionalism as human capital in accounting firm as a service company. This research is intended to study the effect of human capital on the performance of auditors in KAP in Bandung by proposing research hypothesis that, human capital have positive effect on auditor performance, either partially or simultaneously. Several dimensions as sub-variables that form human caputals to be studied are represented by individual capability, individual motivation, leadership, the organizational climate, and workgroup effectiveness factors. The auditor's performance is measured by three factors that make the performance are (1) individual factors, (2) psychological factors, and (3) organizational factors. The study was conducted at an accounting firm located in Bandung. From the number of population taken random sample consisting of senior accountant and junior accountant as respondent. Data collection technique used is by using questionnaire. In accordance with the measurement scale, the data that have been collected tested the validity of Rank Spearman correlation formula and reliability with Alpha Cronbach. Data that have been tested and declared valid and reliable are then analyzed by correlation and regression analysis. Based on the results of correlation and regression analysis to test the hypothesis obtained findings of research results that human capital simultaneously have a fairly close relationship with its performance. While from multiple regression analysis it is known that each dimension gives various contribution to auditor performance and significant at p = 0,05, so from result of significance test, either partially or simultaneously can be concluded to accept research hypothesis, that is human capital have positive effect to auditor performance