Examining the role of professional audit standards and auditor independence in enhancing government financial audit quality

Abstract

This study aims to examine the influence of Professional Audit Standards and Auditor Independence on Government Financial Audit Quality within a Regional Government Inspectorate in Indonesia. Employing a quantitative approach, data were collected through a structured questionnaire distributed to 30 auditees selected via purposive sampling. Multiple linear regression analysis was used to test the hypotheses. The results indicate that Professional Audit Standards have a positive but statistically insignificant effect on Audit Quality. In contrast, Auditor Independence has a positive and significant effect on Audit Quality. Furthermore, both variables jointly exert a significant influence on Audit Quality, explaining 44.2% of its variance. The findings highlight that while formal compliance with professional standards is necessary, auditor independence plays a more critical role in ensuring objective and high-quality audit outcomes. The study recommends that the Regional Government Inspectorate continuously strengthen the implementation of professional standards through regular training and enhance auditor independence by mitigating conflicts of interest and external pressures.