Implementing Public Accountant Professional Standards to Improve Audit Quality in Public Accountant Firms in East Java, Indonesia

The purpose of this research is to adopt public accounting professional standards in Malang and Surabaya, East Java, Indonesia, in order to improve audit quality. A total of 150 junior and senior auditors, supervisors, managers, and partners from public accounting companies in Malang and Surabaya, Indonesia, were included in the sample. The study's findings revealed that the competency of the auditors performing audits on behalf of the customer had an impact on the audit quality. Recommendations for improving audit quality based on public accountants' professional standards should be maximized and implemented to public accountants' audits on the client side so that auditor quality improves and more assignments are completed.

Pengaruh Human Capital Dan Gender Terhadap Kualitas Auditor Pada Kantor Akuntan Publik Di Medan

Penelitian ini mengkaji tentang kualitas auditor dalam mengeluarkan opini terhadap laporan keuangan. Hasil opini yang dikeluarkan auditor dapat mempengaruhi nilai suatu perusahaan. Penelitian ini bertujuan untuk menguji hubungan Human Capital dan Gender terhadap kualitas auditor pada Kantor Akuntan Publik (KAP) di Medan. Populasi dalam penelitian ini adalah auditor yang bekerja pada Kantor Akuntan Publik (KAP) di Medan. Dengan teknik pengumpulan data melalui keusioner diperoleh 36 sampel. Data yang diperoleh merupakan data primer pada kantor Akuntan Publik (KAP) di Medan. Variabel penelitian ini terdiri dari Kualitas Auditor sebagai variabel terikat dan Human Capital dan Gender sebagai variabel bebas. Teknik analisis data yang digunakan dalam penelitian ini adalah SMART Partial Least Square (PLS). Hasil penelitian ini menunjukan bahwa variabel Human Capital secara partial tidak berpengaruh dan signifikan terhadap Kualitas Auditor. Variabel Gender secara partial berpengaruh dan signifikan terhadap Kualitas Auditor. Sedangkan secara simultan, Variabel Human Capital dan Gender terhadap Kualitas Auditor. Kesimpulan penelitian ini adalah secara partial variabel Gender berpengaruh terhadap Kualitas Auditor sedangkan variabel Human Capital tidak berpengaruh dan signifikan. Variabel Human Capital dan Gender tidak berpengaruh secara simultan terhadap kualitas auditor pada Kantor Akuntan Publik (KAP) di Medan.Kata Kunci: Human Capital, Gender, Auditor Quality

Pengaruh Kualitas Auditor dan Good Corporate Governance terhadap Manajemen Laba pada Perusahaan Publik Sektor Manufaktur yang Terdaftar di Bursa Efek Indonesia

This research aims to examine the influence of auditor quality and good corporate governance on earnings management in a public company in the manufacturing sector listed on the Indonesia Stock Exchange. The sample of this study was collected by using a non-probability sampling method consisting of 153 observations. To analyze the data, a multiple linear regression analysis was employed. The results showed that auditor quality, managerial ownership, institutional ownership, independent commissioner, and audit committee have no significant influences on earnings management. Therefore, further studies need to seek other variables to improve the regression model. Penelitian ini bertujuan untuk menguji pengaruh dari kualitas auditor dan good corporate governance terhadap manajemen laba pada perusahaan publik sektor manufaktur yang terdaftar di Bursa Efek Indonesia. Sampel ini dikumpulkan dengan menggunakan metode non-probability sampling yang terdiri dari 153 pengamatan. Untuk menganalisis data digunakan analisis regresi linier berganda. Hasil penelitian menunjukan bahwa kualitas auditor, kepemilikan manajerial, kepemilikan institusional, komisaris independen dan komite audit tidak memiliki pengaruh terhadap manajemen laba. Oleh karena itu, untuk penelitian selanjutnya perlu mencari variabel lain untuk memperbaiki model regresi tersebut.

The Effect of Auditor Quality, Liquidity, Profitability, and Solvency on Going Concern Audit Opinions on Property and Real Estate Companies Listed on IDX in 2016-2020

This is document gives formatting instructions for authors preparing papers for publication in the Recent Science Journals. The authors must follow the instructions given in the document for the papers to be published. You can use this document as both an instruction set and as a template into which you can type your own text. In this study, it is about assessing how the influencer or impact of an auditor's quality, liquidity, profitability, and solvency either partially or partially or simultaneously or simultaneously, on the audit opinions of property and real estate companies that are already on the IDX list between 2016 and 2020 Changes in the audit report indicates that the auditor believes there is a possibility that the auditor may be able to leave the company. Various variables, both financial and non-financial, can affect the assessment of a company's capacity to continue its operations. This research involved 65 real estate building companies that can be listed on the IDX from 2016 to 2020, with a total of 195 units of analysis. Multiple linear regression analysis methods are used in the research procedure. Based on the findings, auditor quality, liquidity and profitability have little effect on the audit view of a property and real estate company listed on the IDX between 2016 and 2020. Between 2016 and 2020, the solvency variable has minimal impact. Immobility and a property company have been listed on the IDX. Variables such as the ability to audit, liquidity, profitability, and solvency have an impact on the audit opinion so that property and real estate companies can be listed on the IDX in 2016-2020.

Analysts’ cash flow forecasts informativeness, financial distress and auditor quality

Purpose The purpose of this study is to examine the sophistication (accuracy, bias, informativeness for changes in accruals) and market pricing of analysts’ cash flow forecasts for Eurozone listed firms and the effects of financial distress and auditor quality. Design/methodology/approach Accuracy/bias is investigated using analysts’ cash flow forecast errors. The naïve extrapolation model is used to examine the forecasts’ informativeness for working capital changes. A total return model is used to examine value-relevance. This study controls for the forecast horizon, using the Altman z-score and a BigN/industry specialization auditor indicator to proxy for distress and auditor quality, respectively. Findings Analysts efficiently adjust earnings forecasts for depreciation during cash flow forecast formation but fail to efficiently incorporate working capital changes. Findings indicate cash flow forecasts’ accuracy improves for distressed firms and firms of high auditor quality, attributed to analyst conservatism and accounting choices and more accurate earnings forecasts, respectively. Cash flow forecasts’ value-relevance increases for distressed firms, particularly those of high auditor quality and timely forecasts. Originality/value To the best of the authors’ knowledge, this study is the first to examine analysts’ cash flow forecasts taking into consideration financial distress and auditor quality, controlling for the analyst forecast horizon.

How auditor locality affects audit report timeliness

Purpose Despite extensive research on the determinates of audit report timeliness, there is limited empirical evidence on the effect of auditor locality on audit report timeliness. Therefore, this study aims to examine the relationship between auditor locality and audit report timeliness. Furthermore, this study investigates the moderating roles of audit committee, corporate governance and auditor quality in this relationship. Design/methodology/approach In this study, the information of 157 companies listed on the Tehran Stock Exchange during the period 2013–2019 has been collected. Moreover, multivariate linear regressions were used to test the hypotheses. Findings Findings show that in general, there is no significant relationship between auditor locality and audit report timeliness. However, empirical evidence suggests that in companies with specialized audit committees, strong corporate governance and high-quality auditors, auditor locality improves audit report timeliness. Originality/value Overall, the results indicate that there are some circumstances in which auditor locality affects the audit report timeliness. Specifically, the association of auditor locality and audit report timeliness is conditional to audit committee, corporate governance and auditor quality.

Dressing for the Occasion? Audit Quality in the Presence of Competition for New Clients

This paper investigates the impact of increased audit market competition on audit quality and auditor choice. I develop a model comprising two auditors who compete for a new client by choosing the audit quality for their respective existing clients and using the audited report as a signal. I identify factors that influence auditor quality decisions as well as the behavior of clients, who potentially misstate their reports. Auditors are tempted to alter audit quality because they are eager to appear desirable from a new client's perspective. Interestingly, while recipients of the audited report adjust their conjectures about audit quality, there are conditions under which auditors lower their audit quality to increase the likelihood of being hired. The analysis extends the existing literature by describing a new approach to modeling the auditors' motivation to signal reputation for certain behavior.

Determinants Of Fraudulent Financial Statement On Islamic Banks In The Perspective Of Crowe’s Fraud Pentagon Theory

This study aims. to.analyze the determinants of. Fraudulent. financial statements. such us external pressure, financial target, effective monitoring, external auditor quality, Profit Sharing Ratio, Director’s Employee Welfare Ratio, Non Islamic Income Ratio, change in director, dan CEO Duality in thee perspective crowe’s fraud pentagon. theory on Islamic Banking in Indonesia during 2015-2019. The sampling. method used was purposive. sampling and generated 62 units of analysis. The results show that Profit Sharing Ratio has a negative effect and Non Islamic Income Ratio have positive effect on fraudulent financial statements. Meanwhile the external pressure, financial targets, effective monitoring, external auditor quality, change in directors and CEO duality have no effect on fraudulent financial statements.

Earnings Management Through Real Activities: The Role Of Audit Quality And Ownership Structure

This study aims to examine the effect of audit quality and ownership structure on earnings management through real activities. The audit quality tested is the size of the public auditor's office and auditor independence. The ownership structure that has been examined for its impact on management management is institutional ownership, managerial ownership, and foreign ownership. Earnings management through real activities is measured by three methods, namely abnormal cash flow from operation (CFO), abnormal discretionary expense, and abnormal production cost. The sample of this research is manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2018. With the purposive sampling method, the final sample is 175 company-years. The results showed that auditor quality and ownership structure had no effect on earnings management as measured by abnormal CFO. Meanwhile, abnormal production cost is not proven to be influenced by ownership structure but is negatively affected by audit quality as measured by Auditor Firm size. Ownership structure and audit quality are proven to have an effect on earnings management, which is measured by abnormal discretionary expense.