The Effect of Competence, Independence, and Professional Skills on Audit Quality with Auditor Ethics as A Moderation

Abstract

This study aims to analyze the influence of auditor competence, independence, and professional proficiency on audit quality, with auditor ethics as a moderating variable. The background of this study is based on the importance of audit quality in increasing public trust in financial statements and minimizing the risk of information asymmetry. Although several previous studies have discussed the factors that influence audit quality, studies that integrate the role of auditor ethics as a moderator in the Indonesian context are still limited. This study uses a quantitative approach with a survey method. The study population is auditors working in Public Accounting Firms (KAP) in Indonesia. The sampling technique uses a purposive sampling method, with the criteria of auditors having at least one year of experience in financial statement audits. A total of 194 questionnaires were collected using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method with the assistance of SmartPLS software. The results show that auditor competence, independence, and professional proficiency have a positive and significant effect on audit quality. In addition, auditor ethics is proven to significantly moderate the relationship between the three independent variables and audit quality, with the effect strengthening the existing positive relationship.