THE INFLUENCE OF COMPETENCE AND INDEPENDENCE

TOWARDS AUDIT QUALITY

(Empirical Study at Public Accountant Firm in South Jakarta)

THESIS

Submitted to Faculty of Economics and Business as Partial Requirement for

Acquiring the Bachelor Degree of Economics

By:

Mohamed Mohamud Warsame

109082100028

DEPARTMENT OF ACCOUNTING

INTERNATIONAL CLASS PROGRAM

FACULTY OF ECONOMICS AND BUSINESS

SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY

JAKARTA

2015

vi

ABSTRACT

Audit quality can be affected by several factors, both internal factors and

external factors. The factors which have very important role in determining the

quality of audit are competence and independence.

This study aims to analyze and prove the empirical evidence of the

influence of auditors’ competence including experience and knowledge and

auditors’ independence including long association with client, the pressure from

client, peer review and non-audit services provided by Certified Public

Accountant Firm towards audit quality. The samples are 52 respondents taken

from auditors of Certified Accountant Firm in South Jakarta. As for answering the

research hypothesis, the author used multiple regression analysis after testing its

classical assumptions

Based on the T-test that has been calculated by the researcher, it shows

that the value of auditor competence = 7.921 > 2.405 while the value of auditor

independence = 6.006 > 2.405. It means that both the competence and

independence of auditors partially affect towards audit quality. Moreover, the F-

test result shows that F count > F table (169.589 > 3,190). It means that both the

competence and independence of auditors simultaneously affect towards audit

quality. Therefore, both the auditor and Certified Public Accounting Firm are

expected to improve their competence and independence. The more competence

and independence do the auditors have, the more quality of audit will be resulted.

Keywords: Auditor, Competence, Independence, Quality Audit.

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Brief of Figure

Figure 2.1 Conceptual Framework .......................................................................... 25

Figure 4.3 Chart Heteroscedasticity ........................................................................ 47

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Brief of Table

Table 3.1 Names of Certified Public Accountant Firm ......................................... 29

Table 3.2 Scores in each Statements in the Research Instruments ......................... 31

Table 3.3 Number of each kind of Statements ........................................................ 31

Table 4.1 Descriptive Statistic ................................................................................ 45

Table 4.2 Data Normality Test ................................................................................ 46

Table 4.4 Multicollinearity Test .............................................................................. 47

Table 4.5 Autocorrelation Test ............................................................................... 48

Table 4.6 Correlation Test ...................................................................................... 48

Table 4.7 Reliability Test ........................................................................................ 49

Table 4.8 Model Summary ...................................................................................... 50

Table 4.9 ANOVA .................................................................................................. 50

Table 4.10 Coefficient Multiple Regression ........................................................... 50

Table 4.11 Coefficient Partial Regression .............................................................. 52

Table 4.12 Simultaneous Test ................................................................................. 52

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BRIEF CONTENTS

Curriculum Vitae ................................................................................................. i

Preface ............................................................................................................ iii

Abstract ............................................................................................................ vi

Brief of Figure ...................................................................................................... vii

Brief of Table ......................................................................................................... viii

Brief Contents ........................................................................................................ ix

CHAPTER I INTRODUCTION

A. Background ....................................................................... 1

B. Problem Formulation ......................................................... 5

C. Purposes of Research ........................................................ 5

D. Benefits of Research .......................................................... 6

CHAPTER II THEORETICAL FRAMEWORK

A. Basic Theory ..................................................................... 8

1. Auditing ...................................................................... 8

2. Audit Quality .............................................................. 10

3. Competence ................................................................ 15

4. Independence .............................................................. 17

B. Conceptual Framework ..................................................... 22

C. Hypothesis ......................................................................... 26

CHAPTER III RESEARCH METHODOLOGY

A. Research Design ................................................................ 27

B. Determination Sample Method ......................................... 28

C. Data Collection Method .................................................... 30

D. Research Instrument .......................................................... 30

E. Types and Sources of Data ................................................ 32

F. Models and Techniques of Analysis Data ......................... 33

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CHAPTER IV ANALYSIS AND DISCUSSION

A. Research Object Description ............................................. 42

B. Result of Descriptive Text ................................................. 45

C. Classical Assumption Test Result ..................................... 45

D. Validity Test Result ........................................................... 48

E. Reliability Test Result ....................................................... 49

F. Regression Test Result ...................................................... 49

G. Hypothesis Test Result ...................................................... 51

H. Discussion ......................................................................... 53

CHAPTER V CLOSING

A. Conclusion ......................................................................... 55

B. Limitation .......................................................................... 56

C. Suggestion ......................................................................... 56

REFERENCES ...................................................................................................... 57

ATTACHMENTS ................................................................................................. 59

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CHAPTER 1

INTRODUCTION

A. Background

The business world is currently experiencing very rapid growth. Many

small businesses become large and even large enterprises become more

advanced. It is tight enough oversight needed to manage enterprises and to the

running of a business activity, so that the company can achieve its intended

purpose. But with strict supervision sometimes not even able to detect and

prevent potential fraud – dishonesty that occurs in the business world

particularly in the financial statement fraud, and will therefore need a service

that can detect and assess the reliability of the report dishonesty. In the

service of this problem is audit services, especially public accountant services

in audit assignment needed to evaluate and determine the reasonableness of a

company’s financial report.

The audit report users expect that the report has been audited by

independent public accountants of material misstatements, trustworthy

authorization to serve as the basis of decision and in accordance with

accounting principles applicable in Indonesia. Thus it needs an independent

professional services and objective (ie public accountant) to evaluate the

appropriateness of financial reports presented by management.

Many cases enterprises “fell” because business failures associated with

the failure of auditors; this threatens the credibility of financial reporting.

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This threat of further influence public perception, financial reports on wearer

especially Audit quality is important because a high quality audit will produce

a credible financial reporting as a basis for decision making.

De Angelo (1981) in Kusharyanti (2003:25) defines audit quality as the

probability that the auditor will discover and report a breach of the client’s

accounting system. Breach of audit findings related to measuring the quality

of knowledge and expertise auditors. While the reporting of violations of

hanging on to urge auditors to disclose violations. This impulse will depend

on the auditor’s independence held.

Terms auditing on Auditing Standards, covering three General

Standard: (SA Section 150, 2011)

1. Audit should be conducted by one or more persons who have the

expertise and technical training enough.

2. In all matters relating to the alliance, independence in mental

attitude should be maintained by the auditor.

3. In the implementation of the audit and compilation of the report,

the auditor must use professional skills carefully.

Matters set forth in this General Standard which will later be used as a

benchmark or parameters of the independent auditors, competent, and prudent

or not in this study.

The use of professional support as the public accountant auditor in

performing the audit work should be guided by the auditing standards

established by the Indonesian Institute of Certified Public Accountants

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(IAPI), which is a general standard, standard of field work and reporting

standards, where the general standard is a reflection of personal qualities that

should be possessed by an auditor who require auditors to have expertise and

sufficient technical training in performing audit procedures. While the

standard field work and reporting standards in the case of auditors organize

data collection and other activities undertaken for conducting the audit and

the auditor requires compiling a report on the audits of financial reports as a

whole.

Great trust of the financial statement audit owner and other services

provided by a public accountant produces. As for questions from the public

on the quality of audits produced by the greater public accountant after an

accountant’s many scandals involving public good in the country or outside

the country, phenomena that occur in the state spotlight from the community

that is such cases that hit the initial KAP (Certified Public Accountant Firm)

partner “HTM”, a fine approximately 100 million rupiah. Offenses committed

by partners KAP “HTM” is that it does not turn the audit risk in inflation

detect any gains made PT Kimia Farma, although it has carried out the audit

in accordance with EMS. One of the cases of PT Kimia Farma impact is

through the secretary of the treasury to issue the ruling circle of number

423/KMK.06/2002 Service Public Accountant, also joined the issue Bapepam

(Capital Market Executive Agency) rule number VIII.A.2 about

independence accountants providing audit services on capital markets.

4

Based on Bapepam investigation, stated that the KAP that audited the

financial statements of PT Kimia Farma has followed applicable audit

standards, but failed to detect the fraud. In addition, the KAP is also not

proven to help the management to commit fraud. In the context of the

cheating scandal, if that happens is the auditor was unable to detect financial

manipulation tricks, the core problem is that the KAP has not applying ethical

principles, namely the competence of the accounting profession and the

professional prudence that is, in terms of experience and knowledge, because

there is nothing left in the inspection and audit results which lead to less

quality, therefore it resulted in the presentation of false information to the

users of the financial information of PT Kimia Farma (Bapepam Report

Release : 2002).

The ability to discover fraud from the financial statements is determined

by the competence of auditors. KAP party shall be liable to a fine of 100

million ie, fines it is necessary and intended that no KAP is doing or a

material misstatement that could make the users of financial information over

the loss of material information. It is expected that something like this does

not happen again and the independent auditor can more carefully and more

closely in the conduct of the examination and auditing firm while maintaining

the principles and codes of professional conduct independent accountant.

The cases like these make the competence and independence of auditor

in CPA firm spotlight in recent years. Public accountant profession as an

independent party, known by the public must be able to produce a quality

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audit services, in this case namely the audit report. In connection with that

position, then the auditors are required to maintain the confidence that they

get from the client, the decision makers and the public.

Based on the above description, writer is interested in further research

on the influence of competence and independence of auditor in relation to

audit quality. Therefore, the author does research with the title “the influence

of competence and independence of auditor in certified public accountant

firm towards audit quality.”

B. Problem Formulation

As for the problems in this study will be examined based on the

background of the above can be formulated in the form of several research

questions:

1. Does the competence of auditor influence audit quality?

2. Does the independence of auditor influence audit quality?

3. Do the competence and independence of auditor influence audit

quality?

C. Purposes of Research

The purpose of the research is to get a number of relevant data and

information about the influence of competence and independence of auditor

towards audit quality in Certified Public Accountant Office. From the

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problems that have been identified above, the purpose of this research is

conducted as follows:

1. To find out how large the influence of competence towards audit

quality.

2. To find out how large the influence of independence towards audit

quality.

3. To find out how large the influence of competence and independence

towards audit quality.

D. Benefits of Research

1. Practical Use

a. For Writer

As a means for researcher to develop and apply the knowledge

acquired from the lecture halls in the work world.

b. For Public Accountant Profession

This can be used as input material for leader of Certified Public

Accountant Firm in order to maintain or improve the competence and

independence of auditors so that it can improve its audit quality.

This research can provide input material for auditors the in the

course of their work so that they can audit as well as possible. This

also can be an evaluation tool for them to improve their audit quality.

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c. For Costumers

This can be a reference and guidance for costumers in order to

assess the consistency of CPA Firm in maintaining audit quality that it

provides.

2. Theoretical Use

a. This research is expected to give conceptual contribution to the

similar researcher as well as other academic community in order to

develop the science to the development and advancement of

education.

b. This research will be useful as a source of information and references

for parties interested in the kind of topic.

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CHAPTER II

THEORETICAL FRAMEWORK

A. Basic Theory

1. Auditing

Definition of auditing mostly taken from ASOBAC (A Statement

Basic of Auditing Concepts) :

“Auditing is broadly defined as a systematic process of objectively

obtaining and evaluating evidence in respect of certain assertions about

economic actions and events, to ascertain the degree of correspondence

between those assertions and established criteria and reporting the results

to interested parties”.

According to Arens, et al (2010:4) defined:

“Auditing is defined as an accumulation and evaluation of evidence about

information to determine and report on the degree of correspondence

between the information and established criteria”.

From above definition it can be concluded that auditing is an

Inspection process that carried out systematically toward audit evidence

objectively regarding assertions about economic actions and events in a

corporate by a competent and independent, in order to be able to give an

opinion in the auditor's report that is produced at the end of the

examination.

According to those conclusions, then at least in auditing contains the

following elements:

a. An audit is a systematic approach: the audit follows a structured,

documented plan (audit plan).

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b. An audit is objectively conducted: an audit is an independent, objective

and expert examination and evaluation of evidence.

c. The auditor obtains and evaluates evidence. The auditor assesses the

reliability and sufficiency of the information contained in the

underlying accounting records and other source data.

d. The evidence obtained and evaluated by the auditor regards assertions

about economic actions and events. The bases of evidence gathering

objectives, the thing that the evidence must “prove” are the assertions

of management.

e. The auditor ascertains the degree of correspondence between assertions

and established criteria. The audit program tests most assertions by

examining the physical evidence of documents, confirmation, inquiry

and observation.

f. The goal, or objective, of the audit is communicating the results to

interested users. The audit is conducted with a view of expressing an

informed and credible opinion, in a written report.

An audit of the financial statements becomes something that is very

important for each company. In addition to an opinion whether the report

financial statements have been presented fairly in accordance with GAAP,

there are several reasons are needed for the audit of the financial

statements, are as follows:

a. If not audited, it is likely that the financial statements contain errors

both intentional and unintentional. Therefore unaudited financial

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statements less reliable reasonableness by those interested parties on the

consolidated financial statements.

b. If the financial statements have been audited and received unqualified

audit (reasonable without exceptions) of KAP, it is mean users can be

confident that the financial statements are free of material misstatement

and presenter in accordance with accounting principles which is

generally accepted in Indonesia.

c. In the beginning of 2001 the company whose total assets of Rp 25

billion or more must get their Audited Financial Statements into

Department of Trade and Industry.

d. Companies that already have existed in public must include their

Financial Statement Audit to Bapepam no later than ninety days after

the fiscal year.

The financial statements audited by a public accountant will be used

by the parties to make decision, this means that the audit should be done

by an ethical, experienced, and have expertise in this regard is by Certified

Public Accountants.

Thus profession of public accounting is a public confidence.

Therefore Public Accountant is required to perform their duties

professionally.

2. Audit Quality

Audit is a process to reduce disharmony information, contained

between managers and shareholders using outsiders to give effect to the

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financial statements. The users of financial statements, especially the

shareholders will take a decision based on the report made by the auditors

on the financial statements of a company endorsement.

This means that the auditor has an important role in the drafting of

the financial statements of the company letter. Therefore, audit quality is

an important thing must be maintained by the auditor in the audit process.

Goldman and Barlev (1974) in Meutia (2004) states that the auditor's

report contains the interests of three groups, namely: (1) manager of the

company that is being audited, (2) the shareholders of the company, (3) a

third party or external parties such as potential investors, creditors and

suppliers. Each of these interests is the source of interference that would

put pressure on auditors to generate reports that may not be in accordance

with professional standards. Furthermore, this will interfere with the

quality of the audit.

AAA Financial Accounting Standards Committee (2000) in

Christiawan (2003) states that: "Audit quality is determined by two things,

namely competence (skills) and independence, both of these directly affect

the quality and potentially affect each other. Furthermore, the user

perception of the quality of the audit of financial statements is a function

of their perceptions of auditor independence and expertise ".

De Angelo (1981) in Watkins (2004) defines audit quality as the

likelihood that the auditor will find and report violations of the accounting

system with the knowledge and expertise of the auditor. While reporting

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violations depend on the auditor urge to reveal violations. This impulse

will depend on the independence possessed by the auditor.

From the definition of audit quality above that the auditors are

required by interested parties with the company to provide a fairness

opinion on the financial report presented by the management company in

order to be able to perform their duties. There are three components that

must be owned by the auditor such as competence (expertise),

independence, and professional care. But in carrying out its functions,

auditors often have conflicts of interest with the company's management.

Management may want the results of operations or performance

looks successful depicted with higher data with the intent to get an award

(eg bonuses). To achieve these goals often exert pressure on company

management auidtor that audited financial statements were produced in

accordance with the wishes of the client.

Based on the description above, the auditor has a strategic position in

the eyes of management as well as in the eyes of users of financial

statements. In addition, users of financial statements put much faith in the

work of auditors in the audit of financial statements.

Great confidence of users of audited financial statements and auditor

services rendered requires the auditor to the quality of its audits.

To be able to meet the good quality of the audit, the auditor in their

profession as the examiner should be guided by the code of ethics

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accountants, professional standards and applicable financial accounting

standards in Indonesia.

Each audit should maintain integrity and objectivity in the

performance of their duties to act honestly, decisively, without pretension

so he can act fairly, without being influenced or request certain parties to

meet their personal interests (Darmawanti, Deni, Khomsiyah and Rika,

2005).

In addition, a public accountant should also be guided by Generally

Accepted Accounting Standards (SPAP) established by the Indonesian

Institute of Accountants (IAI), in which case it is generally accepted

auditing standards. Auditing standards consist of general standards,

standards of field work and reporting standards (SPAP, 2011):

a. General Standard.

1). Audits should be conducted by one or more who have expertise and

sufficient technical training as an auditor.

2). In all matters relating to the engagement, independence in mental

attitude must be maintained by the auditor.

3). In the conduct of the audit and the preparation of its report, the

auditor shall use professional skills carefully and thoroughly.

b. Field Work Standards.

1). The work should be planned well and if used assistants to be

supervised properly.

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2). Adequate understanding on the internal control structure must be

obtained to plan the audit and determine the nature, timing, and

extent of tests to be performed.

3). Sufficient competent audit evidence should be obtained through

inspection, observation, submissions, questions and confirmation as

a reasonable basis for an opinion regarding the financial statements

audited.

c. Reporting Standards.

1). The auditor's report must state whether the financial statements

have been prepared in accordance with accounting principles

generally accepted in Indonesia.

2). The auditor's report should indicate or declare if there are

inconsistencies in the application of accounting principles in the

preparation of the financial statements of the current period

compared to the application of accounting principles in the

previous period.

3). Informative disclosures in the financial statements should be

deemed sufficient, unless otherwise stated in the auditor's report

4). The auditor's report should contain a statement of opinion on the

financial statements as a whole on an assertion.

So based on the above description, the audit has a function as a

process to reduce disharmony information, contained between managers

and shareholders using external parties to give effect to the financial

15

statements. The users of financial statements, especially the shareholders

will take a decision based on a report drawn up by the auditor.

This means that the auditor has an important role in the ratification

of a company's financial statements. Therefore, the auditor must produce a

quality audit so as to reduce the dissonance that occurs between

management and owners. Indonesian Institute of Accountants (IAI) states

that the audit quality is if it meets the standards of auditing and quality

control standards.

Furthermore, according to De Angelo (1981) in Kusharyanti (2003:

25) defines audit quality as the possibility (probability) that the auditor

will find and report violations that exist in the client's accounting system.

The ability to find a material misstatement in the financial statements of

the company depends on the competence of the auditor's willingness to

report the findings while the misstatement depends on its independence.

3. Competence

The first general standard (SA 210 section in SPAP, 2011) states that

the audit should be conducted by one or more who have the adequate

expertise and technical training as auditors, while the third general

standard (SA 230 section in SPAP, 2011) mentions that in the audit and

preparation of the report, the auditor must use finesse with careful and

thorough professionalism (due professional care).

Lee and Stone (1995) in Elfarini (2007), defines competence as the

considerable expertise that can be explicitly used to conduct audits

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objectively. Another opinion is from Dreyfus (1986), defines competence

as a skill a person who acts in a sustainable manner in which its movement

through the learning process, of "knowing something" to "know how".

As for Bedard (1986) in Sri lastanti (2005: 88) defines the skill or

competence as someone who has the knowledge and procedural skills

demonstrated in extensive audit experience. Meanwhile, in the same

article, Shanteau (1987) define expertise as the people who have the skills

and ability at a high degree.

Based on the above it can be concluded that the competence of

auditors is that auditors with sufficient knowledge and experience and can

explicitly perform the audit objective, careful and thorough.

a. Knowledge

SPAP 2011 on General Standards explains that in conducting the

audit, the auditor should have expertise and sufficient knowledge

structure.

Knowledge is measured by how much education as such an

auditor because the auditor will have more knowledge (views) of the

field that they do in order to know the various issues in more depth, in

addition to the auditor will be easier to follow the development of

increasingly complex (Meinhard et.al , 1987 in Harhinto, 2004: 35).

b. Experience

Audit requires high expertise and professionalism. Expertise is

not only influenced by formal education but many other factors

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affecting among other is experience. According to Tubbs (1992) in

Barry (2003) experienced auditor has advantages in terms of: (1)

Detecting errors, (2) Understand errors accurately, (3) Finding the cause

of the error.

Libby and Frederick (1990) in Kusharyanti (2002: 5) found that

experienced auditors have a better understanding. They are also better

able to provide a plausible explanation of the errors in the financial

statements and can classify faults based on the audit objectives and the

structure from the underlying accounting system (Libby et al., 1985) in

Mayangsari (2003: 4). While Harhinto (2004) produced findings that

auditors experience is positively related to audit quality.

4. Independence

Independence means public accountant is not easily influenced.

Public accountant is not justified biased towards anyone. Public

accountants are obliged to be honest not only to the management and

owners of the company, but also to creditors and other parties who put

confidence in the work of public accountants (Christiawan, 2002).

Certified public accountants ethics code states that independence is

the attitude expected of a certified public accountant for not having a

personal interest in carrying out their duties, which is contrary to the

principles of integrity and objectivity.

Research on independence has pretty much conducted both

domestically and abroad. Lavin (1976) examined three factors that affect

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the independence of public accountants, namely: (1) Association of

financial and business relationship with the client, (2) furnishing of

services other than audit services to clients, and (3) the duration of the

relationship between public accountants with clients.

Shockley (1981) examined four factors that affect the independence,

namely (1) Competition among public accountants, (2) Provision of

consultancy services management to clients, (3) Firm Size, and (4) The

duration of the relationship audit

a. Older Relationship With Clients (Audit Tenure)

In Indonesia, the problem of audit tenure is set up in the

Ministry of Finance Decree 423 / KMK.06 / 2002 on public

accounting services. The minister's decision to limit the auditor's work

a maximum of 3 years for the same client, while for Public

Accounting Firm (KAP) may be up to 5 years.

This restriction intended auditor not to be so close to the clients

so as to prevent the occurrence of accounting scandals. As for the

explanation of differences in some of the research results of previous

studies stated as follows: "Assignment of audit that is too long is

likely to encourage public accountant loses its independence as a

public accountant is satisfied, less innovation, and less strict in

performing audit procedures. Instead the old audits may also increase

the possibility of independence for public accountants are familiar; the

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work can be implemented efficiently and are more resistant to

pressure the client "(Supriyono, 2006).

b. Pressure from clients

In performing its duties, the auditors often have conflicts of

interest with the company's management. Management might want the

operation or performance looks successful company, which is

reflected through higher earnings with a view to creating an award.

To achieve these objectives it is not uncommon to pressure the

company's management to the auditor that audited financial statements

were produced in accordance with the wishes of the client. In this

situation, the auditor is in a dilemma. On the one hand, if the auditor

to follow the client's wishes, it violates professional standards. But if

the auditor does not follow the client then the client may terminate the

assignment or change the auditors KAP.

In addition, competition among accounting firms (KAP) is

greater. KAP increased, while the growth of the company is not

comparable to the growth of the firm. Moreover, many companies

conduct mergers or acquisitions and due to the economic crisis in

Indonesia, many companies that went bankrupt. So therefore the firm

will be more difficult to get new clients that the firm was reluctant to

remove the existing clients.

The client's financial condition also affects the auditor's ability

to cope with pressure of clients (Knapp, 1985) in (Harhinto, 2004: 44).

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Clients who have a strong financial condition could provide a sizeable

audit fee and also can provide good facilities for auditor.Selain the

probability of occurrence of bankruptcy clients who have a good

financial condition is relatively small. In this situation the auditor

become complacent resulting in less rigorous in auditing.

Based on the above, the auditor has a strategic position not only

in the eyes of management but also in the eyes of the users of financial

statements. In addition, users of financial statements put much faith in

the work of auditors in the audit of financial statements.

To be able to meet the good quality of the audit the auditor in

their profession as examiner should be guided by the code of ethics,

professional standards and applicable financial accounting standards

in Indonesia. Each auditor must maintain the integrity and objectivity

in carrying out their duties to act honestly, decisively, without

pretension so that he can act fairly, without pressures or demand is

affected by certain parties to meet their personal interests.

c. Peer Review

The demands on the accounting profession to provide quality

services demanded transparency of information about jobs and

operating public accounting firm. Clarity of information about the

quality control system in accordance with professional standards is

one form of accountability to clients and the general public will be

rendered.

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Therefore, the work of public accountants and public accounting

firm operations need to be monitored and audited to assess the

feasibility of the design and quality control system for compliance

with quality standards which hinted that the resulting output can reach

high quality standards. Peer review as prepared by the auditor

monitoring mechanism could improve the quality of accounting and

auditing services.

Peer reviews perceived to provide good benefits for clients,

public accounting firm that reviewed and auditors involved in the peer

review team. The benefits derived from peer review, among others, to

reduce the risk of litigation, providing a positive experience, enhance

employee morale, and provide a competitive edge and more

convincing clients of the quality of services rendered.

d. Non-Audit Services

Services provided by the CPA Firm not only attestation services

but also non-attest services in the form of management consulting

services, tax services and accounting services such as financial

statements (Kusharyanti, 2002: 29).

The existence of two types of services provided by the firm

makes auditor independence against his client in question which will

affect the quality of the audit. The provision of services other than

auditing is a potential threat to auditor independence, because

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management can increase the pressure on auditors to be willing to

issue a report required by the management is an unqualified.

B. Conceptual Framework

One of the functions of public accounting is to produce information that

is accurate and reliable for decision-making. However, the conflict of interest

between the internal and external company, demanding a public accountant to

produce qualified audited report which can be used by these parties.

In addition, there are proliferation of financial scandals both domestic

and foreign, largely departed from financial statements that have been

published by the company. This has raised the question of how the quality of

the resulting audit by a public accountant in the audit client's financial

statements.

Various studies on the quality of audits that have been done resulted in

different findings regarding the determining factors of the quality of audit.

But in general concluded that to produce quality audit, a certified public

accountant who works in divulging the audit team is required to have

sufficient competence and independence.

Based on the logical thinking of those explanations, the framework is

developed for this study, namely:

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1. Effect of Auditor Competence towards Audit Quality

Competence of auditors is that auditors with sufficient knowledge and

experience and can explicitly perform the audit objective, careful and

thorough.

Audit quality is every possibility that the auditor at the time of

audit client's financial statements can be found violations that occur in

the client's accounting system and reported in the audited financial

statements, which the auditors in carrying out their duties guided by

generally accepted auditing standards and codes of conduct relevant

public accountant.

Therefore, it can be understood that an auditor who has sufficient

knowledge and experience has better understanding about the various

issues in more depth and easier to follow developments in an increasingly

complex environment audit clients.

Thus, it can be concluded that the higher competency of auditors,

the higher quality of the resulting audit.

2. Effect of Auditor Independence towards Audit Quality.

Independence is an attitude that is expected of a certified public

accountant for not having a personal interest in carrying out their duties,

which is contrary to the principles of integrity and objectivity.

Therefore it argued that to produce a quality audit requires

independence of auditor because if the auditor loses its independence, the

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audit report that is generated does not match with the reality that it cannot

be used as a basis for decision making.

3. Effect of Competence and Independence of Auditor towards Audit

Quality.

In performing the audit process, the auditor requires a good

knowledge and experience because with those two things, auditors

become better able to understand the financial condition and financial

statements of their clients.

Then with its independence, the auditor can report the violation of

the client's financial statements. Therefore, based on the logical

explanation above, the competence and independence influence the good

quality of audit process and its output.

25

Figure 2.1

CONCEPTUAL FRAMEWORK

KNOWLEDGE

EXPERIENCE

COMPETENCE (X1)

LONG-

RELATIONSHIP

WITH CLIENT

PRESSURE FROM

CLIENTS

PEER REVIEW

NON-AUDIT

SERVICES

INDEPENDENCE (X2)

AUDIT

QUALITY (Y)

26

C. Hypothesis

Based on the description that has been stated above, the research

hypothesis that is used by the author in this study are:

H01 : there is no partial influence of auditor’s competence towards audit

quality.

Ha1 : there is partial influence of auditor’s competence towards audit

quality.

H02 : there is no partial influence of auditor’s independence towards audit

quality.

Ha2 : there is partial influence of auditor’s independence towards audit

quality.

H03 : there is no simultaneous influence of auditor’s competence and

independence towards audit quality.

Ha3 : there is simultaneous influence of auditor’s competence and

independence towards audit quality.

27

CHAPTER III

RESEARCH METHODOLOGY

A. Research Design

This study was a survey research in the form of research explanation

and testing hypotheses which uses descriptive and exploratory methods

because the core of the discussion are auditor’s competence and

independence which are related to the audit quality of public accounting.

Thus, the researchers used a survey questionnaire because it is considered the

most appropriate technique to answer their questions.

This study uses two independent variables, namely the competence of

auditors (X1) and the independence of auditors (X2) while the dependent

variable is quality of audit (Y).

Auditor’s competence (XI) is the auditor with sufficient knowledge and

experience and can explicitly perform the audit objectively, carefully and

thoroughly. Auditor’s independence (X2) is the expected behavior of a public

accountant for not having a personal interest in carrying out their duties,

which is contrary to the principles of integrity and objectivity.

While the quality of the audit (Y) is any possibility when auditing

client's financial statements, auditor can find violations that occur in the

client's accounting system and reported in the audited financial statements,

which in carrying out these duties; the auditor is guided by auditing standards

and relevant code of ethics public accountants.

28

B. Determination Sample Method

1. Population

The population of this study is public accountants who worked at a

public accounting firm located in South Jakarta. This study takes the

object to the behavior of the external auditor who worked on the public

accounting firm located in South Jakarta.

Population is the generalization which consists of object and subject

of a certain quantity and characteristics applied by researchers to learn and

then drawn the conclusion. Population is subject or objects which have

certain qualities and characteristics are determined by researcher.

Thus, the population is not only people but also objects or other

natural objects. Population is also not only quantity but includes all of the

characteristics’ subject or object (Sugiyono, 2008:57).

2. Sample

Samples are selected using convenience sampling. It means that

sample units can be reached easily, anywhere and anytime. It is not

troublesome to measure and cooperative (Abdul Hamid, 2007: 30).

Sample is a subgroup of the elements of the population selected for

participation in the study (Maholtra, 2006:373).

Thus, the respondents that will be used as sample in this study are

selected senior auditors, supervisors and junior auditors who work at

public accounting firms in South Jakarta.

29

Table 3.1 Names of Certified Public Accountant Firm and the Amount of its

Auditors

NO CPA FIRM NAMES AMOUNT OF AUDITORS

1 KAP KANAKA PURADIREDJA,

SUHARTONO 6

2 KAP DRS. KARTOYO & REKAN 3

3 KAP KOSASIH, NURDIYAMAN,

TJAHJO & REKAN 10

4 KAP MAHLIZAR, JAILANI & REKAN 3

5 KAP MEIDINA, RATNA &

ADITYASIH 5

6 KAP DRS. MUCHARAM & AMRON 2

7 KAP DRA. MUGOWATI SUJONO

KAP MUHAEMIN 1

8 KAP NUGROHO & REKAN 5

9 KAP PIETER, UWAYS & REKAN 7

10 KAP. JUNAEDI, CHAERUL DAN

SUBAKTYO 3

11 KAP NOOR SALIM, NURSEHAN &

SINARAHARDJA 3

12 KAP DRS. BASRI HRDJOSUMARTO,

M.SI, AK & REKAN 2

13 KAP HERMAN, DODY,

TANUMIHARDJA & REKAN 2

TOTAL 52

30

C. Data Collection Method

Data collection methods used in the study as follows:

1. Literature Review

The research is conducted by collecting, reading, and studying

literature and reference books as well as relevant to the issues to be studied

in an effort to get clarity of concept formulation of the basic theory that is

useful in the discussion.

2. Field Research

Field research is research that is conducted by obtaining data

directly in the field via questionnaires.

D. Research Instrument

The concept in this study includes the concept of competence and

independence as an independent variable in which competence is projected

into 2 sub-variables: knowledge and experience while independence is

projected into 4 sub variables: pressure from clients, long-standing

relationships with clients, colleagues study of audit and non-audit services.

As the dependent variable is the quality of the audit.

This concept is measured by giving a score for each respondent's

answer. As each answer of the statement has been determined the score

31

Table 3.2 Scores in each statements in the research instruments

Kind of Statements Kind of Answers Score

Positive

Strongly Disagree (SD)

Disagree (D)

Neutral (N)

Agree (A)

Strongly Agree (SA)

1

2

3

4

5

Negative

Strongly Disagree (SD)

Disagree (D)

Neutral (N)

Agree (A)

Strongly Agree (SA)

5

4

3

2

1

The form of the statement is divided into positive and negative

statements. The following table presents the number of each type of statement

contained in the research instruments.

Table 3.3 Number of each kind of statements

Research Variable Research Sub

Variable

Kind of

Statements

Number of

Statements

Competence

1. Knowledge Positive 1,3,4,6

Negative 2,5

2. Experience Positive 7,8,10

Negative 9

Independence

3. Audit Tenure Positive 1,2

Negative 3

4. Pressure from

Clients

Positive 5

Negative 4,6,7,8,9

5. Peer Review Positive -

Negative 10,11

6. Non Audit Service Positive 12,

Negative

Audit Quality Positive 2,3,4,5,6

Negative 1

32

The questionnaire in this study is the question of competence,

independence and audit quality. Type of statement is closed, where

respondents only give tick mark (√) in the answer choices.

E. Types and Sources of Data

1. Data type

The type of data used in this study is the quantitative data in the form

of grades or scores on the answers given by the respondents to the

questions in the questionnaire.

2. Source of Data

Sources of data used in this study are:

a) Primary data

Primary data were obtained directly from the data source or a

place where research is conducted directly (Indriantoro and

Bambang Supomo, 2009: 65). The primary data in this study was

obtained through a questionnaire distributed to respondents.

b) Secondary Data

Secondary data sources of the study were obtained indirectly

through an intermediary medium (Indriantoro and Bambang

Supomo, 2009: 65). As an empirical study, the secondary data in this

research is obtained from articles, journals, and previous studies.

33

F. Models and Techniques of Analysis Data

1. Model of Analysis Data

Model of analysis data used in this study is Multiple Linear

Regression Analysis. Purbayu (2005) suggested that the multiple

correlations are the relationship of several independent variables with the

dependent variable.

If a dependent variable depends on more than one independent

variable, the relationship between the two variables is called multiple

regression analysis (Wahid Sulaiman, 2004: 80).

Multiple linear regression equation is as follows:

Y =α + β1X1 + β2X2 + e

Description:

Y : Audit Quality.

X1 : Auditor Competence.

X2 : Auditor Independence.

α : Constant.

β : Coefficient Regression.

e : Error.

34

2. Techniques of Analysis Data

a) Data Quality Testing

The Commitment of measuring and testing of a questionnaire or

hypothesis depends heavily on the quality of the data used in testing. The

research data will not be useful if the instrument which is used to collect

research data does not have reliability (level of reliability) and validity (the

degree of truth / validity high).

Testing the measurement of each show consistency and accuracy of

data collected. Testing the validity and reliability of the questionnaire in

this study is using SPSS (Statistical Product and Service Solutions).

1) Validity Test

Validity is a measurement that indicates the extent to which the

measuring instrument is able to measure what you want to measure

(Purbayu, 2005: 247). Validity testing is intended to measure how real

a test or instrument. Measurement is valid if it truly measures the

objectives.

Testing the validity of data in this research is conducted

statistically by calculating the correlation between each of these

questions with a total score using Pearson Product Moment

Correlation. Data declared valid if the score r-count which is the value

35

of Corrected Item-Total Correlation > r-table on significance 0.05

(5%).

2) Reliability Test

Reliability is a measure which shows consistency of the

measuring instrument in measuring the same phenomenon in other

occasions (Purbayu, 2005: 251). Reliability of a variable which is

formed from the list of questionnaire is good if it has Cronbach’s

Alpha value > 0,60.

3. Classical Assumptions Test

To obtain unbiased result atau Best Linear Unbiased Estimator /

BLUE, then the regression model must fulfill several assumptions which is

called classical assumptions. The classical assumptions, namely:

a) Normality test

Normality test aims to test whether the regression model, both

dependent and independent variables have a normal distribution or not

(Ghozali 2005: 110). Good regression model must have a normal data

distribution.

Data Normality test in this study uses SPSS for Windows

application for testing the sample data for each variable. In detecting

the normality of the data through the normal output curve graph pp

plot, a variable is called normal if the distribution picture in which the

data points are spread around the diagonal line and the spread of the

36

data points follow the direction of the diagonal line (Nugroho, 2005:

24 in Jimmy, 2007).

In addition to using the graph p-plot, testing normality of the

data was also performed using the histogram curve. Normality of data

when viewed by means of the curve can be determined based on the

histogram picture curve, i.e. when the shape of the curve has a slope

that tends to balance on either the left or right side and a bell-shaped

curve that is almost perfect.

b) Multicollinearity

This test is intended to detect symptoms of correlation between

the independent variable with the other independent variables.

Multicollinearity assumption states that the independent variable

must be free of symptoms of multicollinearity. Multicollinearity

symptom is a symptom correlation, between variables independent.

This phenomenon is demonstrated with significant correlations

between independent variables.

In the event of symptoms of multicollinearity, one of the steps to

improve the model is to eliminate variables from the regression

model, so it can be selected the best models (Purbayu, 2005: 238).

Wahid Sulaiman (2004: 89), multicollinearity means that there is a

perfect linear relationship among some or all of the independent

variables from the regression model.

37

Multicollinearity test can be conducted in two ways, namely by

looking at the VIF (Variance Inflation Factors) and the value of

tolerance. If VIF < 10 and tolerance values > 0.10 then no symptoms

of Multicollinearity (Ghozali, 2005: 92).

c) Heteroscedasticity

Heteroscedasticity test aims to test whether the regression

model occur unequal variance from one observation to other

observation residuals which remain, or called Homoscedasticity

(Ghozali, 2005: 105).

A good regression model is homoscedasticity, no

heteroscedasticity (Ghozali, 2005: 105). Heterocedastity assumption is

the assumption in regression where variance from residuals is not

equal for one observation to other observations.

In regression, one of the assumptions that must be met is that the

variance of the residuals from an observation to other observations is

not similar between the variance of the residuals. Symptoms of

unequal variances is called heterocedastity symptoms, whereas the

presence of residual symptoms similar to observations from divulging

other observations called homoscedasticity, one of the way to test this

is by seeing heteroscedasticity spread of residual variance (Purbayu,

2005: 242).

38

d) Autocorrelation Test

Autocorrelation is used for the sole purpose of knowing whether

there is a correlation between members of a set of observed data and

analyzed according to a (cross section). This test aims to see whether

there is a residual in an observation with other observation on the

model. In these research, researcher uses Durbin Watson test. A model

that can be expressed is not the case if probability value

autocorrelation symptoms Durbin Watson > 0.05 (Wibowo 2012:106).

4. Hypothesis Test

Hypothesis test in this research will be tested by using linear

regression analysis, the analysis used to determine the extent of the

influence of the competence and independence of auditors as independent

variables on audit quality as the dependent variable. To test hypotheses

about the competence and independence of the auditor simultaneously and

partially effect significantly on audit quality, hypothesis simultaneously

effect with the F test, and partially by t test.

a) Partial Test (t test)

T-test is used to determine the effect of each independent

variable on the dependent variable. T test is carried out by comparing

t-count with t-table. Determining the value of t-table is determined by

the significance level of 5% with degrees of freedom df = (n-k- 1)

where n is the number of respondents and k is the number of variables.

39

Testing criteria used are:

If t-count> t-table (n-k-1) then Ho is rejected

If t-count <t-table (n-k-1) then Ho is accepted

In addition, the t-test can also be seen from the probability value

(p value) compared with 0.05 (Level of significance α = 5%).

The test criterion used is

If the p value <0.05, then Ho is rejected

If the p value> 0.05 then Ho is accepted

To find out how much percentage contribution of the

independent variables X1, X2 partially on audit quality as the

dependent variable can be seen from the magnitude of the coefficient

of determination (r2). Where r2 explain how much the independent

variables used in this study could explain the dependent variable.

b) Simultaneous Test (F Test)

The F test is used to determine whether there is influence

simultaneously the independent variables to the dependent variable.

Proof is conducted by comparing the value of F with F table at the

95% confidence level and degrees of freedom (degree of freedom) df

= (nk-1) where n is the number of respondents and k is the number of

variables.

40

Testing criteria used are:

If F-count > F-table (n-k-1) then Ho is rejected

Meaning of statistical data that is used proves that all the

independent variables (X1 and X2) effect on the value of the variable

(Y).

If F-count < F-table (n-k-1) then Ho is accepted

Meaning of statistical data that is used proves that all the

independent variables (X1 and X2) do not affect the value of the

variable (Y).

In addition, the F test can also be seen from the probability value

(p value) compared with 0.05 (Level of significance α = 5%). The test

criteria used are:

If the p value <0.05, then Ho is rejected

If the p value> 0.05 then Ho is accepted

With a level of significance in this study using the alpha 5% or

0.05 F test results can then be calculated with SPSS ANOVA table.

Furthermore, to determine how large a percentage of the

contribution of the independent variables X1, X2 together on audit

quality as the dependent variable can be seen from the magnitude of

the coefficient of determination (r2). Where r2 explain how large

independent variables used in this study could explain the dependent

variable.

41

CHAPTER IV

ANALYSIS AND DISCUSSION

A. Research Object Description

Research object used in this study was Certified Public Accounting Firm

(KAP), a business entity that has received permission from the finance

minister or other authorized officials as a place for public accountants in

providing services. Meanwhile, an independent public accountant or auditor

is an accountant who has received clearance from the finance minister or the

competent authority to provide services.

Certified Public Accounting Firm main duty is to provide some services

named audit services. Explanations of these services are:

1. Audit Services

In his capacity as an independent auditor, public accounting firm

perform a general audit of the financial statements to give a statement

about the fairness of the financial statements.

2. Special Audit

Special audit can be a particular statement of audit performed using a

mutually agreed procedures, the audit of financial statements prepared on

a comprehensive basis and audit of financial information for a particular

purpose.

42

3. Attestation Services

Services related to the issuance of a report containing conclusions

about divulging state assertions (statements) written, is the responsibility

of the other party, held from inspection, review and mutually agreed

procedures.

4. Financial Statements Review

Financial Statements Review is a service that provides limited

confidence that there are no material modifications that should be

implemented for the financial statements in accordance with generally

accepted accounting principles on other comprehensive basis of

accounting.

5. Services Compilation of Financial Statements

Services to prepare financial statements based on financial records and

other information provided by management of a particular entity.

6. Consulting Services

These services include a variety of shapes and areas of competence in

accordance with a public accountant. For example, a general consulting

services to management, systems planning and implementation of

accounting systems, education and training, implementation of selection

and recruitment of personnel to provide other consulting services.

43

7. Tax Services

Services provided include general tax advisory services, tax planning,

review types of taxes, tax return filling and settlement of tax matters.

Organizational structure within the firm as follows:

a. Colleague or partner, the co-chairman who has the highest positions in

the firm. His job overall charge of the work handled by the firm.

b. Manager, the examiner supervisor, coordinator of senior auditors. His

job reviewing the audit program, reviewing working papers, audit

reports and management letter.

c. Senior auditor or coordinator of junior auditor, accountant planner who

is responsible for the implementation of inspection. His job is directing

and reviewing the work of junior accountants.

d. Junior auditor or auditor staff, those who implement the procedures

detailed inspection in accordance with the guidance of a senior

accountant. His job is to make the paper work.

This study was conducted on a public accountant by the number of

respondents was 52. It is revealed that competence factors include knowledge

and experience, independence factors that include long-standing relationships

with clients, the pressure of a client, peer review of auditors and non-audit

services and audit quality. The data were taken using a questionnaire

instrument that has been tested for validity and reliability.

50

From table 4.10 above, it can be obtained a multiple regression equation as

follows:

Y = (-4,924) + 0,412 X1 + 0,332 X2

Here are the explanations of the multiple regression equation which are

formed:

1. Auditor competence have t value of 7.921, the value of the coefficient B

is 0.412 and significant level of 0.000. This indicates that the coefficient of

the variable auditor competence (X1) has a positive effect (unidirectional) to

audit quality (Y), with a significant level of 0.000. This means that the higher

auditor competence, the higher quality of audit

2. Independence of auditors has t value of 6.006, with a coefficient B 0.332,

and a significant level of 0.000. This indicates that the coefficient of the

variable auditor independence (X2) has a positive effect (unidirectional) to

audit quality (Y) with a significant level of 0.000. This means that the higher

the auditor's independence, the higher quality of audit.

3. Constants of (-4.924) means that an auditor should have the competence

and independence if he/she wants to have a good quality of audit.

G. Hypothesis Test Result

1. t Test Results (Partial)

T-test is used to determine the effect of each independent variable on the

dependent variable, between the competence and independence on audit

53

The variable of independent is projected through the long-standing

relationships with clients, pressure from clients, peer review, audit and non-audit

services provided, having a significant impact on audit quality, namely with the

value of the regression coefficient of 0.332, which means that every unit increase

in the independent variable it will improve the quality of audits produced by the

auditor of 0,332 units.

From the research, it is known simultaneously that audit quality of auditors in

certified public accounting firm in South Jakarta can be determined by

competency and independency in the coefficient of determination R2 0.874 or

87.4% and the remaining 12.6% is determined by other factors beyond of this

research model.

These results can be concluded that in order to improve audit quality, it is

affected by two variables, namely competence and independence. This can be

understood as if the auditors have the competence; the result of audit will be

maximized, as supported by knowledge and experience even when the auditor has

independence it will not be affected by the client. Auditors will be free to perform

audit tasks. But if it does not have the competence and independence, especially if

it gets pressure from the client then audit quality is not optimal.

54

CHAPTER V

CLOSING

A. Conclusion

Based on the research that has been conducted which aims to find empirical

evidence about the relationship between competence and independence of auditors

towards audit quality in CPA Firm in South Jakarta. It can be concluded that:

1. There is partial influence between the variables of auditor’s competence

towards audit quality. It can be seen from the T-test that has been calculated

by the researcher, it shows that the value of T-count > T-table (7.921 > 2.405)

then H0 is rejected.

2. There is partial influence between the variables of auditor’s independence

towards audit quality. It can be seen from the T-test that has been calculated

by the researcher, it shows that the value of T-count > T-table (6.006 > 2.405)

then H0 is rejected.

3. There is simultaneous influence between auditor’s competence and auditor’s

independence towards audit quality. It is shown by the results of the F test

hypothesis (simultaneous) which showed that there is effect on audit quality

from both of them because F count > F table (169.589 > 3,190) then Ho is

rejected, it means that auditor competence and independence jointly affect the

quality of the audit.

55

B. Limitation

This study is limited to the research object auditors who work in Certified

Public Accounting Firm (CPA Firm) in South Jakarta. Thus are allowing the

differences in the results, discussion or conclusions for different research objects.

Measurement of audit quality will be better if other studies objects are added such

as leadership of the CPA Firm.

C. Suggestion

Based on the research that has been conducted, and then suggestions are

submitted, among others:

1. To improve the quality of audit, it is necessary to increase the competence

of auditors by giving training and opportunity to follow courses or an

increase in professional education.

2. Auditors are expected to increase their independence because

independence factors can affect the quality of audit. The auditors which

are in charge of their client are sought a truly independent, not under

pressure of clients, do not have embarrassment in performing audit tasks

completely objective and can produce a quality audit.

3. Respondents in further research should be expanded, not only from the

scope of the auditor's executives, but can also be from the head of the

Public Accounting Firm.

4. For further research, we should be able to consider adding other variables

that can affect the quality of audit.

56

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58

ATTACHMENTS

ATTACHMENT 1

NO CPA FIRM NAMES AMOUNT OF AUDITORS

1 KAP KANAKA PURADIREDJA,

SUHARTONO 6

2 KAP DRS. KARTOYO & REKAN 3

3 KAP KOSASIH, NURDIYAMAN,

TJAHJO & REKAN 10

4 KAP MAHLIZAR, JAILANI & REKAN 3

5 KAP MEIDINA, RATNA &

ADITYASIH 5

6 KAP DRS. MUCHARAM & AMRON 2

7 KAP DRA. MUGOWATI SUJONO

KAP MUHAEMIN 1

8 KAP NUGROHO & REKAN 5

9 KAP PIETER, UWAYS & REKAN 7

10 KAP. JUNAEDI, CHAERUL DAN

SUBAKTYO 3

11 KAP NOOR SALIM, NURSEHAN &

SINARAHARDJA 3

12 KAP DRS. BASRI HRDJOSUMARTO,

M.SI, AK & REKAN 2

13 KAP HERMAN, DODY,

TANUMIHARDJA & REKAN 2

TOTAL 52

59

ATTACHMENT 2

KUESIONER

Identitas Responden

Nama :

Tempat kerja :

Lama bekerja :

Jabatan :

Mohon bapak/ibu beri tanda silang (√) pada kolom (antara 1-5), sesuai

skala yang menurut bapak/ibu paling mendekati :

STS : Sangat Tidak Setuju

TS : Tidak Setuju

R : Ragu

S : Setuju

SS : Sangat Setuju

NO Pernyataan STS TS R S SS

Instrumen Kompetensi

1

Saya memahami dan melaksanakan jasa

professional saya sesuai dengan Standar

Akuntan Keuangan (SAK) dan Standar

Profesional Akuntan Publik (SPAP) yang

relevan.

2 saya tidak perlu memahami jenis industri

klien

3 saya perlu memahami kondisi perusahaan

klien.

4 saya membutuhkan pengetahuan yang

diperoleh dari tingkat pendidikan formal.

5

Selain pendidikan formal, untuk melakukan

audit, saya tidak membutuhkan

pengetahuan yang diperoleh dari kursus

60

dan pelatihan khususnya dibidang audit.

6 Keahlian khusus yang saya miliki dapat

mendukung proses audit yang saya lakukan

7

Semakin banyak jumlah klien yang saya

audit, menjadikan audit yang saya lakukan

semakin lebih baik.

8

Saya telah memiliki banyak pengalaman

dalam bidang audit dengan berbagai

macam klien sehingga audit yang saya

lakukan menjadi lebih baik

9

Walaupun sekarang jumlah klien saya

banyak, audit yang saya lakukan belum

tentu lebih baik dari sebelumnya

10

Saya pernah mengaudit perusahaan yang

go publik, sehingga saya dapat mengaudit

perusahaan yang belum go publik lebih

baik.

Instrumen Independensi

1

Auditor sebaiknya memiliki hubungan

dengan klien yang sama paling lama 3

tahun

2

Saya berupaya tetap bersifat independen

dalam melakukan audit walaupun telah

lama menjalin hubungan dengan klien

3

Tidak semua kesalahan klien yang saya

temukan saya laporkan karena lamanya

hubungan dengan klien tersebut.

4 Agar tidak kehilangan klien, kadang-

kadang saya harus bertindak tidak jujur.

5 Jika audit yang saya lakukan buruk, maka

saya dapat menerima sanksi dari klien.

6 Tidak semua kesalahan klien saya laporkan

karena saya mendapat peringatan klien.

7

Saya tidak berani melaporkan kesalahan

klien karena klien dapat mengganti posisi

saya dengan auditor lain.

8

Jika audit fee dari satu klien merupakan

sebagian besar dari total pendapatan suatu

kantor akuntan maka hal ini dapat merusak

independensi akuntan publik.

9

Fasilitas yang saya terima dari klien

menjadikan saya sungkan terhadap klien

sehingga kurang bebas dalam melakukan

audit.

61

10

Saya tidak membutuhkan telaah dari rekan

auditor untuk menilai prosedur audit saya

karena kurang dirasa manfaatnya.

11

Saya bersikap jujur untuk menghindari

penilaian kurang dari rekan seprofesi

(sesama auditor) dalam tim.

12

Selain memberikan jasa audit, suatu kantor

akuntan dapat pula memberikan jasa-jasa

lainnya kepada klien yang sama.

Instrumen Kualitas Audit

1

Besarnya kompensasi yang saya terima

akan mempengaruhi saya dalam

melaporkan kesalahan klien.

2

Pemahaman terhadap sistem informasi

akuntansi klien dapat menjadikan

pelaporan audit saya menjadi lebih baik.

3

Saya mempunyai komitmen yang kuat

untuk menyelesaikan audit dalam waktu

yang tepat.

4 Saya menjadikan SPAP sebagai pedoman

dalam melaksanakan pekerjaan laporan.

5 Saya tidak mudah percaya terhadap

pernyataan klien selama melakukan audit.

6

Saya selalu berusaha berhati-hati dalam

pengambilan keputusan selama melakukan

audit.

Terima kasih atas kesediaan bapak/ibu untuk mengisi kuesioner ini. Saya

pastikan bahwa hasil kuesioner ini hanya digunakan untuk keperluan akademik.

62

CPA FIRM in South Jakarta

Questionnaire for Auditor

Respondent Identity :

Name :

Place of work :

Old work :

Title :

Mr / Mrs are requested to give a response that is appropriate to the

following questions by selecting scores available by way of crossing (x). If

according to Mr / Mrs no right answers on question, then the answer can be given

to the closest option. Scores can answer given to the closest option. Score the

answer is as follows:

Score 1: Strongly Disagree (SD)

Score 2: Disagree (D)

Score 3: Neutral (N)

Score 4: Agree (A)

Score 5: Strongly Agree (SA)

NO QUESTION SD D N A SA

Instrument of Competence

1

I understand the Accounting Standards

Finance (SAK) and The Professional

Standard Public Accountant (SPAP).

2 I do not need to understand the types of

industrial clients

3 I need to understand the conditions of

clients company.

63

4 I need knowledge obtained from the level

formal education.

5

In addition to formal education, for conduct

an audit, I do not require knowledge

obtained from the course and training

particularly in audit.

6 My special expertise can support the audit

process

7 The more clients I audit, the better audit I

can conduct.

8

I have had many experiences in audit with

a wide range of clients so that I can do a

better audit.

9

Although the current number of clients is

many, my audit did not necessarily better

than previous.

10

I have ever audited go public company so

that I can conduct better audit for common

company.

Instrument of Independence

1 Auditors should have a relationship with

the same client later than 3 years

2

I tried to remain independent in performing

the audit although it has been long

established relationships with clients.

3 Not all errors that I found are reported

because good relations with clients.

4 In order not to lose a client, I sometimes

have to act dishonestly.

5 If the audit that I did is bad, then I will get

the sanction from the client.

6 I do not report my clients’ entire faults

because I have got a warning from them

7 I do not dare to report clients’ mistakes

because they can easily change my position

8

If an audit fee from one client is a large

part of the total income of an accounting

firm then this could undermine the

independence of the public accountant.

9

Facilities that I received from clients make

me hesitate to them so there is a less

freedom in conducting the audit.

10 I do not need peer review from my fellow

to assess my audit procedures because it

64

perceives less benefits

11

I am being honest to avoid less assessment

from my colleagues (fellow auditors)

within the team.

12

In addition to providing audit services, an

accounting firm may also provide other

services to the same client.

Instrument of Audit Quality

1

The amount of compensation that I receive

will affect me in reporting my clients’

errors.

2

Understanding the system of client

accounting information can make better

audit reporting

3 I have a strong commitment to complete

the audit in a timely manner.

4 I made the SPAP as a guide in carrying out

the work report

5 I could not easily believe the client

representation during auditing

6 I always tried to be careful in decision

making for doing audit.

Thank you for your willingness to fill out this questionnaire. I ensure the

confidentiality of the answers and it is only used for academic interest.

65

ATTACHMENT 3

LIST OF VALUES OF VARIABLES X AND Y IN

CERTIFIED PUBLIC ACCOUNTANT FIRM

NO Respondent

Variable Y

(Audit

Quality)

Variable X1

(Auditor

Competence)

Variable X2

(Auditor

Independence)

1 A1 24 35 43

2 A2 23 35 40

3 A3 23 33 41

4 A4 26 37 47

5 A5 21 33 39

6 A6 21 31 38

7 A7 24 36 43

8 A8 23 35 44

9 A9 23 36 42

10 A10 24 33 45

11 A11 27 40 47

12 A12 22 31 41

13 A13 21 32 41

14 A14 27 38 46

15 A15 24 35 46

16 A16 24 32 43

17 A17 23 33 43

18 A18 24 36 44

19 A19 24 36 44

20 A20 25 36 44

21 A21 26 36 47

22 A22 22 31 40

23 A23 23 32 42

24 A24 22 31 42

25 A25 22 33 43

26 A26 24 36 44

27 A27 23 33 41

28 A28 27 40 48

29 A29 21 32 39

30 A30 23 34 45

31 A31 25 35 46

32 A32 21 30 40

33 A33 23 34 44

66

34 A34 26 38 48

35 A35 23 33 44

36 A36 20 29 39

37 A37 28 39 47

38 A38 24 36 42

39 A39 23 34 41

40 A40 25 38 43

41 A41 22 33 44

42 A42 20 30 41

43 A43 22 32 43

44 A44 24 33 44

45 A45 24 35 45

46 A46 24 34 43

47 A47 23 34 43

48 A48 26 37 45

49 A49 21 31 42

50 A50 27 39 46

51 A51 22 32 41

52 A52 25 32 47

72

ATTACHMENT 5

F TABLE

Percentage Point of F Distribution for Probability = 0,05 1 161 199 216 225 230

2 18.51 19.00 19.16 19.25 19.30

3 10.13 9.55 9.28 9.12 9.01

4 7.71 6.94 6.59 6.39 6.26

5 6.61 5.79 5.41 5.19 5.05

6 5.99 5.14 4.76 4.53 4.39

7 5.59 4.74 4.35 4.12 3.97

8 5.32 4.46 4.07 3.84 3.69

9 5.12 4.26 3.86 3.63 3.48

10 4.96 4.10 3.71 3.48 3.33

11 4.84 3.98 3.59 3.36 3.20

12 4.75 3.89 3.49 3.26 3.11

13 4.67 3.81 3.41 3.18 3.03

14 4.60 3.74 3.34 3.11 2.96

15 4.54 3.68 3.29 3.06 2.90

16 4.49 3.63 3.24 3.01 2.85

17 4.45 3.59 3.20 2.96 2.81

18 4.41 3.55 3.16 2.93 2.77

19 4.38 3.52 3.13 2.90 2.74

20 4.35 3.49 3.10 2.87 2.71

21 4.32 3.47 3.07 2.84 2.68

22 4.30 3.44 3.05 2.82 2.66

23 4.28 3.42 3.03 2.80 2.64

24 4.26 3.40 3.01 2.78 2.62

25 4.24 3.39 2.99 2.76 2.60

26 4.23 3.37 2.98 2.74 2.59

27 4.21 3.35 2.96 2.73 2.57

28 4.20 3.34 2.95 2.71 2.56

29 4.18 3.33 2.93 2.70 2.55

30 4.17 3.32 2.92 2.69 2.53

31 4.16 3.30 2.91 2.68 2.52

32 4.15 3.29 2.90 2.67 2.51

33 4.14 3.28 2.89 2.66 2.50

34 4.13 3.28 2.88 2.65 2.49

35 4.12 3.27 2.87 2.64 2.49

36 4.11 3.26 2.87 2.63 2.48

37 4.11 3.25 2.86 2.63 2.47

38 4.10 3.24 2.85 2.62 2.46

39 4.09 3.24 2.85 2.61 2.46

40 4.08 3.23 2.84 2.61 2.45

41 4.08 3.23 2.83 2.60 2.44

42 4.07 3.22 2.83 2.59 2.44

43 4.07 3.21 2.82 2.59 2.43

44 4.06 3.21 2.82 2.58 2.43

45 4.06 3.20 2.81 2.58 2.42

46 4.05 3.20 2.81 2.57 2.42

47 4.05 3.20 2.80 2.57 2.41

48 4.04 3.19 2.80 2.57 2.41

49 4.04 3.19 2.79 2.56 2.40

50 4.03 3.18 2.79 2.56 2.40

51 4.03 3.18 2.79 2.55 2.40

52 4.03 3.18 2.78 2.55 2.39

53 4.02 3.17 2.78 2.55 2.39

54 4.02 3.17 2.78 2.54 2.39

55 4.02 3.16 2.77 2.54 2.38

56 4.01 3.16 2.77 2.54 2.38

57 4.01 3.16 2.77 2.53 2.38

58 4.01 3.16 2.76 2.53 2.37

59 4.00 3.15 2.76 2.53 2.37

73

R TABLE

1 0,9877 0,9969 0,9995 0,9999 1,0000

2 0,9000 0,9500 0,9800 0,9900 0,9990

3 0,8054 0,8783 0,9343 0,9587 0,9911

4 0,7293 0,8114 0,8822 0,9172 0,9741

5 0,6694 0,7545 0,8329 0,8745 0,9509

6 0,6215 0,7067 0,7887 0,8343 0,9249

7 0,5822 0,6664 0,7498 0,7977 0,8983

8 0,5494 0,6319 0,7155 0,7646 0,8721

9 0,5214 0,6021 0,6851 0,7348 0,8470

10 0,4973 0,5760 0,6581 0,7079 0,8233

11 0,4762 0,5529 0,6339 0,6835 0,8010

12 0,4575 0,5324 0,6120 0,6614 0,7800

13 0,4409 0,5140 0,5923 0,6411 0,7604

14 0,4259 0,4973 0,5742 0,6226 0,7419

15 0,4124 0,4821 0,5577 0,6055 0,7247

16 0,4000 0,4683 0,5425 0,5897 0,7084

17 0,3887 0,4555 0,5285 0,5751 0,6932

18 0,3783 0,4438 0,5155 0,5614 0,6788

19 0,3687 0,4329 0,5034 0,5487 0,6652

20 0,3598 0,4227 0,4921 0,5368 0,6524

21 0,3515 0,4132 0,4815 0,5256 0,6402

22 0,3438 0,4044 0,4716 0,5151 0,6287

23 0,3365 0,3961 0,4622 0,5052 0,6178

24 0,3297 0,3882 0,4534 0,4958 0,6074

25 0,3233 0,3809 0,4451 0,4869 0,5974

26 0,3172 0,3739 0,4372 0,4785 0,5880

27 0,3115 0,3673 0,4297 0,4705 0,5790

28 0,3061 0,3610 0,4226 0,4629 0,5703

29 0,3009 0,3550 0,4158 0,4556 0,5620

30 0,2960 0,3494 0,4093 0,4487 0,5541

31 0,2913 0,3440 0,4032 0,4421 0,5465

32 0,2869 0,3388 0,3972 0,4357 0,5392

33 0,2826 0,3338 0,3916 0,4296 0,5322

34 0,2785 0,3291 0,3862 0,4238 0,5254

74

35 0,2746 0,3246 0,3810 0,4182 0,5189

36 0,2709 0,3202 0,3760 0,4128 0,5126

37 0,2673 0,3160 0,3712 0,4076 0,5066

38 0,2638 0,3120 0,3665 0,4026 0,5007

39 0,2605 0,3081 0,3621 0,3978 0,4950

40 0,2573 0,3044 0,3578 0,3932 0,4896

41 0,2542 0,3008 0,3536 0,3887 0,4843

42 0,2512 0,2973 0,3496 0,3843 0,4791

43 0,2483 0,2940 0,3457 0,3801 0,4742

44 0,2455 0,2907 0,3420 0,3761 0,4694

45 0,2429 0,2876 0,3384 0,3721 0,4647

46 0,2403 0,2845 0,3348 0,3683 0,4601

47 0,2377 0,2816 0,3314 0,3646 0,4557

48 0,2353 0,2787 0,3281 0,3610 0,4514

49 0,2329 0,2759 0,3249 0,3575 0,4473

50 0,2306 0,2732 0,3218 0,3542 0,4432

51 0,2284 0,2706 0,3188 0,3509 0,4393

52 0,2262 0,2681 0,3158 0,3477 0,4354

53 0,2241 0,2656 0,3129 0,3445 0,4317

75

t TABLE

Pr df

0.025 0.01 0.005 0.001

0.050 0.02 0.010 0.002

1 12.70620 31.82052 63.65674 318.30884

2 4.30265 6.96456 9.92484 22.32712

3 3.18245 4.54070 5.84091 10.21453

4 2.77645 3.74695 4.60409 7.17318

5 2.57058 3.36493 4.03214 5.89343

6 2.44691 3.14267 3.70743 5.20763

7 2.36462 2.99795 3.49948 4.78529

8 2.30600 2.89646 3.35539 4.50079

9 2.26216 2.82144 3.24984 4.29681

10 2.22814 2.76377 3.16927 4.14370

11 2.20099 2.71808 3.10581 4.02470

12 2.17881 2.68100 3.05454 3.92963

13 2.16037 2.65031 3.01228 3.85198

14 2.14479 2.62449 2.97684 3.78739

15 2.13145 2.60248 2.94671 3.73283

16 2.11991 2.58349 2.92078 3.68615

17 2.10982 2.56693 2.89823 3.64577

18 2.10092 2.55238 2.87844 3.61048

19 2.09302 2.53948 2.86093 3.57940

20 2.08596 2.52798 2.84534 3.55181

21 2.07961 2.51765 2.83136 3.52715

22 2.07387 2.50832 2.81876 3.50499

23 2.06866 2.49987 2.80734 3.48496

24 2.06390 2.49216 2.79694 3.46678

25 2.05954 2.48511 2.78744 3.45019

26 2.05553 2.47863 2.77871 3.43500

27 2.05183 2.47266 2.77068 3.42103

28 2.04841 2.46714 2.76326 3.40816

29 2.04523 2.46202 2.75639 3.39624

30 2.04227 2.45726 2.75000 3.38518

31 2.03951 2.45282 2.74404 3.37490

32 2.03693 2.44868 2.73848 3.36531

33 2.03452 2.44479 2.73328 3.35634

34 2.03224 2.44115 2.72839 3.34793

35 2.03011 2.43772 2.72381 3.34005

36 2.02809 2.43449 2.71948 3.33262

37 2.02619 2.43145 2.71541 3.32563

38 2.02439 2.42857 2.71156 3.31903

39 2.02269 2.42584 2.70791 3.31279

40 2.02108 2.42326 2.70446 3.30688

41 2.01954 2.42080 2.70118 3.30127

42 2.01808 2.41847 2.69807 3.29595

43 2.01669 2.41625 2.69510 3.29089

44 2.01537 2.41413 2.69228 3.28607

45 2.01410 2.41212 2.68959 3.28148

46 2.01290 2.41019 2.68701 3.27710

47 2.01174 2.40835 2.68456 3.27291

48 2.01063 2.40658 2.68220 3.26891

49 2.00958 2.40489 2.67995 3.26508

50 2.00856 2.40327 2.67779 3.26141

51 2.00758 2.40172 2.67572 3.25789

52 2.00665 2.40022 2.67373 3.25451

53 2.00575 2.39879 2.67182 3.25127

54 2.00488 2.39741 2.66998 3.24815

55 2.00404 2.39608 2.66822 3.24515