Determinants of Internal Audit Quality and External Audit Fees
DOI:
https://doi.org/10.30741/assets.v8i1.1223Keywords:
Competency, Fee Audit, Internal Audit , Internal Audit Quality, ObjectivityAbstract
Internal audit a part of good corporate governance, one of its functions is to ensure that internal control runs well, apart from that, the existence of internal audit also expected to provide value added to the company. Quality internal audit plays a very important role in supporting the success and sustainability of a company. This research aims to examine the determinants of internal audit quality and further examine the role of internal audit quality on external audit fees. Primary data is used in this research, the collection method is through distributing questionnaires. Purposive sampling criteria were used in this research as a sample selection technique.and obtained a total of 43 samples. Data Analysis Method using Confirmatory Factor Analysis with PLS3. The object is the internal audit of companies that are members of the Japfa Group. The research results show that competence and objectivity are determinants of internal audit quality. Furthermore, internal audit quality has significant effect on external audit fees.
Downloads
References
Abbott, L., Parker, S., & Peters, G. F. (2012). Audit Fee Reductions from Internal Audit-Provided Assistance: The Incremental Impact of Internal Audit Characteristics. Contemporary Accounting Research, 29(1).
Ahmad, B. O. (2018). The Effect of Internal Audit on Organizational Performance: An Empirical Exploration of Selected Jordanian Banks. Research Journal of Finance and Accounting, 9(14).
Al‐Twaijry, A. A. M., Brierley, J. A., & Gwilliam, D. R. (2004). An examination of the relationship between internal and external audit in the Saudi Arabian corporate sector. Managerial Auditing Journal, 19(7).
Ariyanto, D. C., & Soedarsa, H. G. (2022). Pengaruh Independensi, Pengalaman Kerja, Objektivitas, Dan Audit Fee Terhadap Kualitas Audit. Sinomika Journal, 1(3).
Bae, G. S., Choi, S. U., Lamoreaux, P. T., & Lee, J. E. (2020). Auditors’ Fee Premiums and Low Quality Internal Controls. Contemporary Accounting Research, 38(1).
Chrisman, J. J. (2019). Stewardship Theory: Realism, Relevance, and Family Firm Governance. Sage Journal, 43(6).
Ebimobowei, A., & Binaebi, B. (2013). An Examination of the Effectiveness of Auditing of Local Government Financial Reports in Bayelsa State, Nigeria. Current Research Journal of Social Sciences, 5(2).
Hapsari, M. W., & Laksito, H. (2013). Pengaruh Reputasi Auditor dan Spesialisasi Industri Auditor Terhadap Audit Report Lag (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2016 dan 2017). Diponegoro Journal of Accounting, 8(2).
Haryanto, A. S., & Hidayah, N. (2023). The Effect of Internal Auditor’s Competence and Internal Control Effectiveness On Financial Statement Quality. Journal of Social Science, 4(1).
Hazami-Ammar, S. (2019). Some evidence on the impact of internal audit on external audit fees. Journal Corporate Accounting & Finance.
Hernandez, M. (2012). Toward an Understanding of the Psychology of Stewardship. Academy of Management Review, 37(2).
Meliana Triya Anggiani, & Yasa, I. N. P. (2023). Pengaruh Objektivitas, Independensi, Pengetahuan dan Pengalaman Kerja terhadap Kualitas Audit. Jurnal Ilmiah Akuntansi Dan Humanika, 13(2).
Rakhmat, F. D., Fadhilah, N., & Sirajuddin, B. (2019). PENGARUH KOMPETENSI INTERNAL AUDITOR, OBJEKTIVITAS INTERNAL AUDITOR DAN KEBERANIAN MORAL TERHADAP EFEKTIVITAS AUDIT INTERNAL DENGAN DUKUNGAN MANAJEMEN SENIOR SEBAGAI VARIABEL MODERASI. Balance - Jurnal Akuntansi Dan Bisnis, 4(1).
Reding, K. R. (2013). Internal Auditing: Assurance & Advisory Services.
Reynolds, J. K., Deis, D. R., & Francis, J. R. (2004). Professional Service Fees and Auditor Objectivity. AUDITING: A Journal of Practice & Theory, 22(1).
Setiowati, D. P., Kuntadi, C., & Pramukty, R. (2023). PENGARUH KOMPETENSI INTERNAL, OBJEKTIVITAS, DAN INDEPENDENSI TERHADAP EFEKTIVITAS AUDIT INTERNAL. Jurnal Economina, 2(7).
Shahimi, S., Dato’ Mahzan, N., & Zulkifli, N. (2016). Value Added Services of Internal Auditors: An Exploratory Study on Consulting Role in Malaysian Environment. International Journal of Management Excellence, 7(1), 720–735.
Singh, K. S. D., Ravindran, S., Ganesan, Y., Abbasi, G. A., & Haron, H. (2021). Antecedents and Internal Audit Quality Implications of Internal Audit Effectiveness. Int. Journal of Business Science and Applied Management, 16(2).
Suraida, I. (2005). Pengaruh Etika, Kompetensi, Pengalama Audit dan Risiko Audit Terhadap Skeptisme Profesional Auditor dan KetepatanPemebian Opini Akuntan Publik. Sosiohumaniora, 7(3).
Tandiontong, M. (2016). Kualitas Audit dan Pengukurannya. Bandung: Alfabeta.
Zain, M. M., Zaman, M., & Mohamed, Z. (2015). The Effect of Internal Audit Function Quality and Internal Audit Contribution to External Audit on Audit Fees. International Journal of Auditing, 19(3).
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Feni Wilamsari, Titik Musriati, Retno Cahyaningati
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.