THE EFFECT OF AUDITOR EXPERIENCE AND
PROFESSIONAL JUDGMENT TOWARDS QUALITY OF
AUDIT EVIDENCE COLLECTED
(Study about CPA Firm in South Jakarta)Written by:
Dea Makmur Hadinugraha 109082100013
ACCOUNTING MAJOR
INTERNATIONAL CLASS PROGRAM FACULTY OF ECONOMICS AND BUSINESS
vi
. PERSONNAL IDENTITY
Name : Dea Makmur Hadinugraha
Place and Date of birth : Serang, 3 March 1991
Occupation : Colledge
Religion : Islam
Gender : Male
S t a t u s : Single
Address : Kompleks Perikanan Ciceri No. 280
RT 02/RW 16 Kelurahan Sumur
Pecung Serang 42118. Telp. (0254) 200065 HP. 087884520171
Rent a house : gg. Masjid Arriyad cipayung. Ciputat Tangerang Selatan - Banten
Email :[email protected]
2. EDUCATION
Elementary School Negeri Serang 03 (1997 2003) Junior High School 01 Serang (2003 2006)
Senior High School Negeri 01 Serang (2006 2009) University of Syarif Hidayatullah Jakarta (2009 Now)
3. ORGANIZATIONAL EXPERIENCE
Coordinator of collecting funds in IKATAN ALUMNI SMANSA SERANG 2009 .
IT development in International Program in UIN Syarif Hidayatullah Jakarta.
4. SEMINAR AND TRAINING EXPERIENCE
vii
THE EFFECT OF AUDITOR EXPERIENCE AND PROFESSIONAL JUDGMENT TOWARDS QUALITY OF AUDIT EVIDENCE COLLECTED
ABSTRACT
The purpose of this research is to observe the effect of auditor experience and professional judgment as independent variable, towards quality of audit evidence collected as dependent variable. This research used primary data which is collected by distributing the questioner and selected by using purposive sampling method. The samples consist of CPA firm in South Jakarta. There 5 CPA firm taken as a sample. The data is tested using multiple linier regression analysis with significant level 0.05. The significance level of t-test in this research is 0.000 for auditor experience and 0.023 for professional judgment and the significant level of f-test is 0.000. It indicates that the auditor experience and professional judgment significant positive effect towards quality of audit evidence collected.
viii
PENGARUH PENGALAMAN DAN PERTIMBANGAN PROFESIONAL AUDITOR TERHADAP KUALITAS BUKTI AUDIT YANG DIKUMPULKAN
ABSTRAK
Tujuan dari penelitian ini adalah untuk mengetahui pengaruh pengalaman auditor dan pertimbangan auditor, sebagai variabel bebas terhadap kualitas bukti audit, sebagai variabel terikat. Data yang digunakan pada penelitian ini adalah data primer dengan cara menyebarkan questioner yang dipilih menggunakan metode purposive sampling. Sampel terdiri dari KAP yang berada di wilayah Jakarta Selatan. Ada 5 KAP yang menjadi sampel dari penelitian ini. Data diuji dengan analisa regresi linear berganda. Level signifikansi untuk t-test dari penelitian ini adalah 0.000 untuk pengalaman auditor dan 0.023 untuk pertimbangan profesional dan level signifikansi untuk f-test adalah 0.000. Ini menunjukkan bahwa pengalaman auditor dan pertimbangan profesional memiliki pengaruh signifikan positif terhadap kualitas bahan bukti audit.
ix
F
!"# ! $% ! " &' ( & &'& ) *
+ ), #*q, as well as his guidance. So, because Allah SWT I can finish this research
on time.
Shalawat always gives to the Prophet of Muhammad SAW and all his family and
friends who always helped him in establishing Dinullah in this earth.
With the strength, intelligence, patience, and strong desire from Allah SWT, I am
able to finish this mini thesis as graduation pre requirement for bachelor degree. I believe
there is an invisible hand which has helped me going through this process.
My special thank for my mom who had supported me with your best way and
never gave up educating me to be a good son. No matter how bad I was, you always be
by my side and always behaved me so well. I promised to make you happy and proud of
me by being a son that you want. Thank you so much for already being the best mom
ever for me, my pray are always for you.
I also would like to extend my gratitude to my father, Muchari M.Sc, who always
support my studying and teach me your best experience. You already be my inspiration
and my teacher who teach me how to life in this world. Making you proud of me is
always becoming my priority. Thanks for the hard work that had you done for the family.
x
Special thank to my beloved uncle who had supported me in moral and financial
side. Thank for all for everything who already done for me. Your advice, time, and spirit
help me to finish the bachelor degree. I believe, I can make you proud. I promise!
My sister, Ajeng Larasati who has always helped and supported me for my best,
whatever I do and whenever it is.
I believe I am nothing without each one of you who has helped me in finishing
this mini thesis. Thus, in this very special moment, let me say many thanks to all of them
who have been helping me the process of this thesis, including:
1. Muchari, M.Sc and Sri Maryani A.Md as my parents who give me spirit for
completing this mini thesis.
2. Prof. Dr. Abdul Hamid, MS as Dean of the Faculty of Economics and Business
who helped me in completing this mini thesis and received Bachelor Degree.
3. Ahmad Dumyathi Bashori, MA as Head of International Program.
4. Dr. Amilin, SE, Ak, M.Si as my thesis supervisor I. You are my mentor who has
provided direction and guided me, shared your knowledge to me, and thank you
for your time that you gave .So, I able to finish this mini thesis.
5. Yulianti, SE, M.Si as my thesis supervisor II who has provided direction,
guidance, and thank you for your time and your patience that you gave to me, so I
can finish this mini thesis. So sorry for my bad attitude during the consultation.
xi
7. Sugih Waluyo as the staff in International office. Thank you for always helping me in doing administrative things in UIN. You also taught me a lot in doing my thesis.
8. My girl, Ressa andresta. The strongest and the most diligent girl that I ever had.
Thanks for your time, because you always beside me.
9. All my friends in accounting international 2009, angga, arin, aul, bimo, cici,
usman, adnan, diah, evi, gamal, kokoh, nanda, nenek, opi, pipit, putri, saepan,
septian, iyus, tami. Thanks for the remarkable moments that we had been through
together and special thanks for some of you that already shared and taught me
your valuable experiences, especially in doing thesis. Thanks also for my friends
in management international 2009.
10. Thanks for all seniors and juniors that had helped me during my study, thanks a
lot guys!
I realize this mini thesis is still far from perfection, thus suggestions and constructive criticism from all parties are welcome, in order to improve my thesis. Finally, only Allah SWT will return all and I hope this thesis will be useful to all parties, especially for writers and readers in general, may Allah bless us and recorded as the worship of Allah s hand. Amin.
Wassalammualaikum Wr.Wb
Tangerang, September 2013
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Certification from Supervisor... ii
Certification of Comprehensive Exam Sheet... iii
Certification of Thesis Exam Sheet ... iv
Authenticity Statement Sheet Scientific Work... v
Curriculum Vitae ... vi
Abstract... ix
Abstract... x
Foreword... xi
Table of Content... xiv
List of Table... xviii
List of Figure ... xix
List of Appendixes... xx
CHAPTER I INTRODUCTION G. H IJ KLMNO PQ... 1
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®. »© ³¼ ¸©Â¨°¨©¶ ³¸ÂD©³©¯ ½¨¶® ³¨¸¶Ã¬ ²) . 41 b. Individual Parameter or Partial Significance Test. (t-Test) .. 42
c. Simultaneous Significance Testing (f-Test) . 42 d. Multiple Linear Regression Analysis .. 43
E. Operational Research Variable ... 43
1. Auditor experience as variable X1 ... 44
2. Auditor s Professional Judgment as a variable X 2 ... 44
3. The Quality of Audit Evidence Collected as a Variable Y ... 45
Ä ÅÆÇÈ É ÊË Ì ÆÍ ÆÎ ÏÐ Ë ÐÆÍÑÑË Ð Ä ÒÐ Ð Ë Ó Í A. General Description of Research Object ... 48
B. Descriptive Data ... 49
C. Analysis and Discussion ... 52
1. Validity Test ... 52
2. Reliability Test ... 56
3. Classic Assumption Test ... 57
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5. ÕÖ×Ø ÙÚÙØ×Û×ÜÝ Ö ... 67
Þ ßàáâ ã äå Þ æçÞ è é ê ë æçàçìäãÞ æííã çì àâ ë æç î. Conclusion ... 71
B. Recommendation ... 72
äãïã äã çÞ ã ê ... 73
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2.1 ÿ ... 29
3.1 Variable ... 46
4.1 Questioners Distribution ... 49
4.2 Distributed Questioners in each CPA firm ... 51
4.3 Description of Respondents ... 52
4.4 Result of Validity Test with Reliability Analysis for Audit Experience 53 4.5 Result of Validity Test with Reliability Analysis for Professional Judgment of Auditor ... 54
4.6 Result of Validity Test with Reliability Analysis for Quality of Audit Evidence Collected ... 55
4.7 Reliability Test for Auditor experience ... 56
4.8 Reliability Test for Professional Judgment of Auditor ... 56
4.9 Reliability Test for Quality of Audit Evidence Collected ... 57
4.10 Kolmogorov-Smirnov Test ... 59
4.11 Multicollinearity Test ... 60
4.12 Model Summary ... 62
4.13 Simultaneous Significant Test (F-Test) ... 63
4.14 Significant Partial Test (T-Test) ... 64
vii
2.1 !"# $% F& $'() &* ... 33
4.1 + & '$%,-Plot Graph ... 58
-viii
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Appendix 2 Raw Data ... 84
Appendix 3 Output SPSS ... 85
1
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PT Kimia Farma is one of the drug manufacture owned by government
in Indonesia. In the audit dated December 31, 2001, management of Kimia Farma
reported a net profit at Rp 132 billion, and the report has been audited by Hans
Tuanakotta & Mustafa (HTM). However, the Ministry of SOEs and the
BAPEPAM considers that net income is too large and contains elements of fraud.
After doing the re-audit, on October 3, 2002 Kimia Farma financial
statements re-stated and the results have been found fairly fundamental error. In
the recent of financial report, the net profit has been presented only Rp 99.56
billion, Rp 32.6 billion lower, or 24.7% lower from profit has been reported
earlier. Errors that occur in the Raw department was overstated sales of Rp 2.7
billion, in the Central Logistics unit was overstated inventory of Rp 23.9 billion,
in the unit of Pharmaceutical Wholesaler unit was overstated inventory of Rp 8.1
billion and overstated sales of Rp 10.7 billion.
The Effort to mark-up the money taken by the directors of Kimia
Farma is exactly to attract the investors to invest their money in PT. Kimia Farma.
The errors associated with presenting inventories are arises because the values
2 production, published two lists of stock prices on the 1st and 3rd February, 2002.
The list price per 3th February value has been mark-up and used as the basis of
assessment of inventory at the distribution unit in Kimia Farma per December 31,
2001. Whereas presenting the errors related with the sale are using double
counting on the sale. Double counting is done on units that are not sampled by
auditors, so it can t be detect.
Bapepam s investigation group noted that the audited financial
statements KAP PT Kimia Farma has followed applicable audit standards, but
failed to detect the fraud. In addition, the CPA firm has also not been shown to
help the management to commit the fraud. The result of this case, the PT Kimia
Farma is subject to a fine of Rp 500 million, the old directors of the PT Kimia
Farma to a fine of Rp 1 billion, the audit partner HTM which audit Kimia Farma
fined of 100 million dollars. Mistakes made by the partner HTM is that he did not
managed to overcome the risk of audit in detecting the profit mark by PT Kimia
Farma, even though he had run an audit in accordance SPAP. (Bapepam, PT
Kimia Farma Tbk case, Bapepam Press Release, December 27, 2002).
Another case is the case that struck a public accountant who indicated
Sidhartha Justinus Aditya made a mistake in auditing the financial statements.
Great River International, Tbk. The case appear after the findings of the
BAPEPAM auditor's investigation found the inflating indication in sales account,
3 River which eventually resulted in the company's cash flow difficulties and failed
to pay the debt. So, based on these investigations BAPEPAM states
that public accountants examine financial statements Great River join a suspect.
Therefore the Minister of Finance as of November 28, 2006 has frozen public
accountant license Justinus Aditya Sidhartha for two years for committing
violations of the Public Accountants Professional Standards (SPAP) Audit report
relating to the Consolidated Financial Statements of PT. Great River in 2003.
(Bapepam, PT Great River International Tbk case, Bapepam Press Release,
November 23, 2005)
The last shocking case is the manipulation of Satyam Computer
Services Ltd financial reporting. The innovative company run in information
technology is the largest in India and has received the most prestigious award of
Entrepreneur of the Year Ernst & Young in 2007. Actually, the Ernst & young
itself can t detect the fraud. The Modus is to start with a small thing is to cover
the difference between the actual earnings are recorded in the books are getting
more and more swollen. The fake company's profit margin is 24% (U.S. $ 133
million) of total revenue. Different from the actual profit is only 3% (U.S. 12.5
million) of total revenue U.S. $ 434 million, - There is also a difference of U.S. $
100 million long-term debt of actual (actual long-term debt) with recorded in the
books. The company's U.S. $ 1.2 billion (53.61 billion rupees) which was
4 94%. (Journal of Economics, Business and entrepreneurship Vol. 1, Number 2,
2010)
All skill checks essentially directed to present the audit evidence that
are relevant and valid in order to describe audit findings. With the development of
the type and form of evidence is certainly needed those skilled auditor to gather
the quality of evidence. Auditors are required to have qualifications to understand
the criteria used and should be competent to determine the type and amount of
evidence to be collected in order to reach conclusions right after the examination.
(Arens et al, 2011:5).
Sampling for gathering audit evidence and doing audit procedure are
part of auditor decision. In doing sampling audit procedure, the auditor should
have skills for finding good quality evidence. The quality of audit evidence is
important because of the evidence used to corroborate or deny the assertions of
management. The evidence gathered from the audit procedures used to determine
(Siti and Ely, 2010:117).
Audit evidence is all the media information that is used by auditors to
support the argument, opinions or conclusions and recommendations in
convincing level of concordance between the conditions of the criteria. Before
familiar with computerized systems, the entire audit evidence in the form of notes
on paper, or what is often referred to as paper based. At that time, audit evidence
5 been abandoned because it was considered less efficient and effective, and cost
large in data storage and maintenance of data. In the recording system manual,
there are several shortcomings that it needs more time a lot to keep track of and
search for information, documents missing vulnerable, need space and absorb the
cost of labor (Agoes Sukrisno, 2008:35).
The main decisions who has faced by auditors is sufficient amount of
evidence that must be collected to ensure that the financial statements have been
presented reasonable. It needs to be considered to remember of enormous costs
incurred for doing detailed audit for the financial statements that the auditor is
expected to be fully convinced that the opinion given is correct. By combining all
of the evidence overall, the auditor may decide to issue an audit report if there is
no more doubt on his audit. Decision of the auditor in the audit evidence
collection can be divided into four sub-decisions, namely: audit procedures to be
used, the sample size will be chosen for a particular procedure, the item will be
selected from the population and when the procedure will be performed (Arens,
2011:228).
Here is the one example of fraud did by management and also
measures for the removal of evidence of fraud, which indicated that fraud carried
out by the management of Bank Indonesia (BI):
6 evidence when three suspected cases of financial flows BI was not immediately arrested. The day after the search is done KPK investigators in some space in Building BI, including the Governor BI, the Commission found the removal efforts and removal of documents allegedly committed by the secretary of the Governor of the central bank. (Antara News, 2008)
Before the information electronic transaction (ITE) law was passed, a
form of evidence in litigation is evidence set forth in Law No. 8 1981 on the Law
of Criminal Procedure Article 184 (bhpn.go.id). After the legalization of
information electronic transaction Law, the internal auditor should be more
cautious to evaluate company, because all forms of common practice helped by
electronic media and can be used as audit evidence to be evaluated. Because
today, for supporting evidence, must supported by at least 2 of 3 categories in
information electronic transaction law (ITE) No.11 of 2008 (physical evidence,
data, testimony) to reinforce his opinion.
However, in practice auditor can be make inferences bias (audit bias),
so giving rise the resistance or friction which not necessary by the auditee.
(Valery G. recurrent, 2011:87). Here is several factors contributing to bias the
audit include:
1. Examination time is not comparable Time checks are not comparable to
the extent of the field areas were examined.
7 3. Just rely in one category and the auditor directly makes the conclusion
which set forth into a confirmation memo or directly posted to audit
report.
There are significant differences between experienced and inexperienced
auditors with respect to knowledge, problem solving skills, searching and
evaluating evidence, and decision quality (Ali et al., 2010 in Zakari and Karim,
2012).
Through education, training and experience, auditors become an
expert in auditing and accounting, as well as have the ability to assess objectively
and impartially exercise judgment against the information recorded in the books
of the company or any other information disclosed by the audit successfully. In
performing the audit task, an auditor is required to have the ability to carry out the
duties of the audit. The evidence collected should be sufficient to convince the
auditor to give his opinion. In addition, he also had to consider the suitability of
such evidence, determine the criteria in accordance with generally accepted
standards (Seruni and Wardoyo, 2011).
Based the understanding above, experience and professional judgment
become the indicator to gathering quality of audit evidence. Auditor who have
much experience can do audit task better than auditor who have less experience.
8 requirement. Professional judgment of auditor is also important for gathering
quality of audit evidence because auditor has limited time and money, it
impossible to audit whole financial statement on that company. The auditor must
use professional judgment to select the quality of audit evidence and used it to
state their opinion for that company. The collection evidence that audit quality
can only be done by a competent auditor to have adequate knowledge, experience
and skills to auditor's professional judgment in determining the evidence collected
along with supporting evidence from other categories. Based on the description
above, I am interested in doing research entitled ` a b c d d bef gd h i j k fglmn
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This research has done by Faridah (2010) with title : The influence of
auditor experience and task difficulty to quality of audit evidence , Seruni and
Trimanto (2011) with title : The influence of auditor experience and professional
judgment of auditor to quality of audit evidence collected and Devani (2012)
with title : The influence of competency and professional judgment to quality of
audit evidence , with the difference as follow :
1. Faridah (2010)
a. Variable : the previous research used audit experience and task
9 b. Region : Bandung
c. Analysis method : The previous research used path analysis
d. Year of research : 2010
2. Seruni and Trimanto (2011)
a. Analysis Method : The previous research used path analysis
b. Region : CPA firm in Bandung
c. Year of research : 2011
3. Devani (2012)
a. Variable : The previous research used competency and
professional judgment as independent variable
b. Region : Nation Owned Enterprise in Bandung
c. Analysis method : The previous research used multiple regression
model
10
Various problems underlying the establishment of research and writing are as
follows:
1. Are the experience and professional judgment auditor partially and
simultaneously significant effect with the quality of audit evidence collected?
The study has several objectives as follows:
1. Analyzing the effect of auditor experience and professional judgment to audit
the quality of the evidence collected.
1. give contribution to the development of the theory, especially related to the
auditor and the balance of professional experience to the quality of audit
evidence collected
2. For Auditors expected can give contribution in order to carry out his
professional duties, especially when the client gather audit evidence by
relying on experience and professional judgment
3. For the Indonesian Institute of Accountants expected can give contribution to
decision-making when creating rules or policies that will be used by its
¡ ¢£ ¤¥ ¦R § §
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¼ ½¾ncy theory is a theory that explains the relationship between
agents as those who manage the company and the principal as the owner of
both which are bound in a contract¿ ÀÁ¾ owner or principal is a party to
evaluate the information and agents are running as part of management
activities and decision making ÂÃensen and ÄecklingÅÆÇÈÉÊ¿
Ãensen and Äeckling ÂÆ ÇÈÉÊ also define an agency relationship as a
contract under which one or more persons Âthe principalÂsÊÊ engage another
person Âthe agentÊ to perform some service on their behalf which involves
delegating some decision making authority to the agent¿ Ëf both parties to the
relationship are utility maximizersÅ there is good reason to believe that the
agent will not always act in the best interests of the principal¿ ÀÁ¾ principal can
limit divergences from his interest by establishing appropriate incentives for
the agent and by incurring monitoring costs designed to limit the aberrant
activities of the agent¿ Ën additionÅ in some situationsÅ it will pay the agent to
expend resources Âbonding costsÊ to guarantee that he will not take certain
compensated if he does take such actionsÎ ÏÐweverÑ it is generally impossible
for the principal or the agent at zero cost to ensure that the agent will make
optimal decisions from the principalÒs viewpointÎÓn most agency relationshipsÑ
the principal and the agent will incur positive monitoring and bonding costs
ÔnonÕpecuniary as well as pecuniaryÖÑ and in additionÑ there will be some
divergence between the agentÒs decisions and those decisions which would
maximize the welfare of the principalÎ×ØÙ dollar equivalent of the reduction in
welfare experienced by the principal as a result of this divergence is also a cost
of the agency relationship and we refer to this latter cost as the Úresidual loss .
Auditors act as agents to principals when performing an audit and this
relationship therefore brings with it similar concerns with regard to trust and
confidence as the director-shareholder relationship, prompting questions about
who is auditing the auditor. Agents (whether they are directors or auditors)
may be trustworthy without a need for further incentives to align interests or
monitoring mechanisms such as audit or increased regulation. However, the
simple agency model would suggest that agents are untrustworthy. Like
directors, auditors will have their own interests and motives to consider. For
example, auditors may be risk averse and being conscious of their potential
liability, introduce risk management processes that result in limitations in the
scope of their work and caveats in their reports which principals may find
importance to shareholders and is seen as a key factor in helping to deliver
audit quality. However, an audit necessitates a close working relationship with
the board of directors of a company. The fostering of this close relationship has
led (and continues to lead) shareholders to question the perceived and actual
independence of auditors and to demand tougher controls and standards over
independence to protect them. As far as independence and objectivity are
concerned, auditors need to be conscious of threats to objectivity and apply
suitable safeguards where necessary. Reputation is a key factor in promoting
trust and auditor independence is an important quality that shareholders look
for. Auditors have an important incentive to maintain independence to protect
their reputation and thereby help them to retain and win audits (Institute of
Chartered Accountants article, 2005)
2Ý Þß à á âá ã ä
There are some definitions of auditing:
a. Arens, Elder, Beasley (2011:11)
"Auditing is the accumulation and evaluation of evidence about information to determine and report en the degree of correspondence between the information and established criteria. Auditing should be done by a competent, independent person.
b. American Accounting Association (AAA) Committee
"Auditing is a systematic process to obtain and assess the evidence objectively, relating to statements about actions and events economics, to determine the compatibility between these statements with the established criteria, and communicate the results to interested parties."
c. According Mulyadi (2009:9)
Definition of auditing is as follows: "A systematic process for obtaining and evaluating evidence objectively regarding statements about events and economic events, in order to determine the level of compatibility between the statements of the criteria have been established and the delivery of results to the concerned ".
d. According to Siti Kurnia Rahayu et al (2010:1)
A systematic process for obtaining and evaluating evidence objective information regarding the level of compatibility between actions or economic events with the criteria established, and report proceeds to the needy, where auditing should performed by a competent and independence.
In short auditing is a systematic process for obtaining audit evidence
and evaluating it objectively the information level of compatibility between
actions or economic events predetermined criteria, and report the results to the
3é ê ëì íîïð ñò óô
Audits are generally divided into three categories, there are: audit
report finance, audit compliance, and operational audits Arens et al (2011: 16)
a. Financial statement audit
Financial audit is an audit conducted by an external auditor the financial
statements of their clients to give an opinion whether financial statements
are prepared in accordance with the criteria have been set. The results of
the audit distributed to parties outside the company such as creditors,
shareholders, and the public tax office.
b. Audit Compliance
The purpose of audit is to determine whether the examined according
conditions, regulations, and specific laws. The specified criteria in the
compliance audit come from different resources. An example might be
sourced from management in the form of internal control procedures. Audit
compliance is usually called the internal audit function and doing with the
õ6
c. Operational audit
Operational audit is a systematic review of the organization's operating
activities conjunction with a specific purpose. In the operational audit,
auditors expected to conduct an objective observation and analysis
comprehensive review of the specific operations. The operations are to: 1).
Assessing the performance, the performance compared with the policies,
standards, and the goals set by management, 2). identifying opportunities
and, 3). Provide recommendations for improvement or action further. The
parties may request audits Operational management and third parties. Audit
Results operations submitted to the requesting party audit implementation
them.
ö÷ ø ù úûúü ýþýÿ ý þ üýÿ ýú þú
Arens et al. (2011:225) that the audit evidence as follows:
"Evidence is any information used by auditor to determine whether the information being audited is stated in accordance with established criteria."
According Mulyadi (2009:74) audit evidence is:
"Audit evidence is any information that supports the numbers or other information presented in the financial statements and can be used by the auditor as appropriate basic for stating opinion."
According to the State Auditing Standards issued by the Audit Board of the
17 The evidence must be sufficient, competent, and relevant must be obtained to be an adequate basis for the findings and conclusions of the reviewers."Most of the work at the time of carrying out the examination the examiner is primarily concerned with obtaining and evaluating evidence to support the judgment and ultimately their conclusions related to examination purposes. In evaluating the evidence, examiners consider whether they have obtained the evidence necessary to achieve the purpose of inspection.
For financial audits, audit evidence includes information from
accounting records used to prepare the report and other relevant information.
Accounting records generally include data from accounting entries and
supporting documents. These include check and details of electronic fund
transfers, invoices, contracts, general and subsidiary ledgers, and journal
entries. Work sheets and spreadsheets supporting cost allocations,
computations, reconciliations and disclosures are also examples. (VAGO
article, 2012)
For performance audits, audit evidence gathered is usually broader
than that obtained for the audit of a financial report. Some examples include
strategic plans, tender documents, business cases, Cabinet submissions,
consultant s reports, legal opinions and contracts with private providers. These
documents can be accessed even if they are in draft form or subject to privacy
restrictions. (VAGO article, 2012)
As we conclude that the audit evidence is any information used for
auditor to support the auditor assurance on the information that has been
18 evidence is any information that can be used by auditors as a basis and
strengthening auditor opinions.
To determine which audit procedures to be used, the auditor can choose from
several broad categories of evidence,there is types of evidence stated by Arens
et al. (2011:231) :
a. Physical Examination
Physical examination or physical examination is an inspection or
calculations performed by the auditors on tangible assets. The physical
examination is a direct way to verify whether the assets were really there or
not (objective existence), and on some level that there are assets that have
recorded (completeness purposes)
b. Confirmation
Confirmation (confirmation) is the acceptance of an audit of a response
written or oral from an independent third party that verifies the accuracy of
the information requested. Confirmation is a form of inquiry to allow the
auditor obtaining information directly from the outside. Confirmation
divided into two kinds, positive and negative confirmation. Positive
19 response in all situations. Negative confirmation happen if the auditor asks
the recipient to respond only, the information not true, and no additional
testing is done when the response are not acceptable. In the usual case, the
client makes a request to the outside parties in writing, but for the purposes
of surveillance, the answer is sent directly to the auditor.
c. Documentation
Documentation is an inspection by the auditors on the documents and
records of client to support the information presented, or should have been
presented in the finance report. The document is also divided into two
parts, internal documents and external documents. Internal documents are
documents prepared and used and stored in the client organization without
ever submitted to outsiders. While external documents are handled by
someone outside of the client organization which is a party to perform
transaction, but the document is now in the hands of the client or the
immediately accessible by the client.
d. Analytical Procedures
Analytical procedures used comparisons and relationships between the
data. This procedure includes calculations and used simple ratios, vertical
20 budget, to assess whether account balances or other data appear reasonable
compared with the auditor expectation. The analytical procedure needed
during the planning phase and completion of audit. This analytical
procedure will produce analytical evidence.
The purpose of analytical procedures:
1) Understand the client's industry and business
2) Assessing the business entity capability to going concern
3) Shows the emergence of possible errors in the presentation
financial statements
4) Decreasing test of details audit
e. Inquiry
Inquiry is an attempt to obtain information orally or in writing from the
client s response to the questions from auditor. Inquiring involves
questions both orally and in writing. These questions can be made
internally to management or employee clients, such as questions about
inventory obsolescence or the possibility of its receivables are collectible,
or externally ask lawyer associated with the possible outcomes of cases.
21 f. Re-calculation
Re-calculation involves re-checking the sample of calculations, performed
by client. The most frequent application of this procedure is to
re-calculation and reconciliation that has been made by the client. Examples
include counting back the number, the cost of depreciation, interest, and
others. This is procedure a mathematical proof.
g. Re-performance
Re-performance is the independent testing doing by auditors on accounting
control or the procedures of client, which was originally performed as part
of accounting system and internal control client.
h. Observation
Observation used the five senses to assess certain activities relating to
observe or witness the implementation of the activities in the process.
These activities can be a regular process of the types of transactions such as
cash receipts, to see if the employee has been performed their duties in
accordance with policies and procedures. Besides accuracy auditor may
also observe employees in implementation of an annual physical inventory.
So in this case the auditors only observe the physical inventory process.
The different from inspecting is the auditor just look for a certain inventory
22 knowledge directly on the activities of the company in the form of physical
evidence. The physical evidence is rarely met, because there is a risk that
employees involved clients in activities that have realized the presence of
the auditor.
As stated in the Act Law Number 11 Year 2008 on Information and
Electronic Transactions Article 1 paragraph 1 (bhpn.go.id) set:
Electronic information is one or a set of electronic data, including but not limited to text, sound, images, maps, designs, photographs, electronic data interchange (EDI), electronic mail, telegram, telex, telecopy or similar, letters, signs, numbers, codes access, symbols, or perforations treated with sense or can be understood by people who are able to understand it.
In short, the typed of audit evidence today have two forms that are
paper and electronic data. The form of audit evidence obtained depending on
the audit procedures used.
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According to Arens, et. al. (2011 224):
"The basic every audit process is the evidence collected and evaluated by auditors ". Therefore, the auditor must have knowledge and sufficient expertise to gather relevant audit evidence, competent and adequate or reasonable. ".
While the audit evidence according to Sawyer (2006: 304) :
23 Competence, relevance, and timeliness are part of indicator the quality of audit
evidence. (Arens, et al, 2011: 224)
Empirical auditing studies in Al-Hadi, 2008 in Zakari and Karim
Menacere, 2012 and also professional standards such as ISA 500 (2010) have
addressed the relationship between the quantity of audit evidence and its
reliability and they found that the quality of audit evidence is influenced by its
amount. For example, ISA 500 (2010) indicates that the quantity of the audit
evidence needed is affected by the auditor s assessment of the risks of material
misstatement and also by the quality of such audit evidence (IFAC, 2010). The
amount of evidence to be obtained based on the following factors (Morariu et
al., 2008 in Zakari and Karim Menacere, 2012):
a. ,-. /01 2 -3245.367 2864 - 2949:.36/;7 2.- /8<16/4 7. 36<9<;1 /. 2 9461
6864.-. 3 /6864.-./=6. 906.6 -. 67
b. >646 = /. 6?9-.
c. @366A/1;/.2949:. 364 /. ; =6/4716A619:=2 -B2436=64.:9=.36: 24 /4?2 /1
-. /.6 864.-C/4/? ?9;4.0/1 /4?69=/.D<69:. = /4 -/?. 2 94
d. @366A/1;/.2949:. 364 /. ; =6/476::6?. 2A646 --9:2 4.6 =4 /1?94.=91-D-.6
8-e. <6 =- 94 /16E<6=. 2 -6/47-B211-9:.36/;7 2. 9=-;?3/-6E<6=264?69:/;7 2. 9=
/47<=9:6- - 294 /1F;7 586 4.
f. @36=6-;1.-9:.36/;72.<=9?67; =6 -C24?1;7 24 5: = /; 79=6==9 =-.3 /.8 253.
3 /A606 64=6A6 /1 67
24 The indicator for the quality of audit evidence as stated by Pickett
(2010:896) :
a. Sufficient
This is in line with materiality, level of risk and the level of auditors
knowledge of the operation. Sufficient means enough with depends on
circumstances. It should be enough to satisfy auditor's judgment or relevant
persuade management to make any changes advocated by audit. Evidence
is adequate when it meets the desired purpose.
b. Relevant
To ensure that evidence is directed to the control objective. Relevant brings
into play the legal concept of admissibility, which requires material to
relate specifically to the issues at hand. It is wrong to refer to matters that
do not impact on the arguments that appear in the audit report, as way of
blurring the issues at hand. The auditor must use professional judgment in
deciding what is important.
c. Reliable
The information should be accurate, without bias and if possible produce
25 stimulates image of the evidence being dependable, honest, sound and
true .
d. Practical
One should weigh up the evidence required, the cost and time taken to
Obtain it and sensitivity.
HI JK L M NOPQ RS TPMT U VT
Experience is a learning process and the development potential of
adding good behavior of formal and non-formal education or can be defined as
a process that brings a person to a pattern of behavior higher. Experience
variables will be measured using indicators of work duration, frequency of
inspection of the work that has been done, and the amount of training that has
been followed. (Asih, 2006 in Bawono & Singgi 2010)
Psychologically, the experience will established personal identity,
which will make a person more wisely both in thought and action, because
someone will feel the experience of his position when he was in good
condition when he was in a bad state. Someone will be more cautious in acting
when he felt the fatal mistake. He will feel happy when he find solutions and
26 won the argument and will feel proud when she received the results of his
work rewarded. (Noviari, 2005 in Bawono & Singgih 2010)
Staff auditors are typically quite new to the workforce and relatively
young compared to client management, yet they are the auditors who meet
with client management most frequently during fieldwork. Differences in age
and experience can result in the staff-level auditor feeling overmatched and
viewing the client meeting as intimidating. Further, client management may
intentionally engage in intimidating behavior in order to prevent excessive
interruptions of normal business during the audit (Overstock, 2007).
Bawono and Singgih (2010) adds that: the work carried out repeatedly is also a factor that can enhance the experience and make it faster and better at completing tasks, and the individual is more aware of the constraints that may be experienced.
In short the experience of auditor is some knowledge which the
auditor get from doing audit the financial statements in terms of the length of
time, many type assignment they do until the types of the companies that have
handled.
WX YZ [ \ ]^_`_^a bc c\^ d efgZ [hibd]
The nature of the audit is the process of verification by an independent
person (impartially) to a management assertion using judgment and evidential
27 In decision-making, an auditor needs good judgment in order to
produce good performance anyway. One consideration can be based on
personality type of each individual. The Important of decisions faced by the
auditor is to determine the type and number of appropriate audit evidence. The
requirement to meet the belief that component of the client's financial
statements and the overall report has been presented reasonable, and that the
client's conduct effective internal control over financial reporting. (Arens et al
2011:224)
I Wayan (2010:146) states that: "Man with all limitations will determine the quality of the resulting judgment. Auditor's judgment is influenced by the perception of the situation. Auditor's judgment is influenced by education, culture and experience. "
Professional judgment obtained by the mentoring auditor, as
given by Sawyer (2006:63) :
"Through the mentoring process development capabilities using professional judgment can also be accelerated by means of efficiently by a mentor."
There are four decisions about what evidence should be collected and
how much to collect (Arens et al 2011:224):
a. Audit Procedures are Used
Audit procedures are some detailed instruction to explain the audit
28 b. The Sample Size which Selected for the Procedure
After selecting audit procedures, the auditor can resize samples from only
one to all items in the population being tested.
c. The Items Selected from the Population
After determining the sample size for a given audit procedures, the auditor
must decide which items in the population to be tested.
d. Time for Doing the Audit Procedures
Audit of financial statements generally include a period as one year.
Typically, a new audit is being completed after a few weeks or a few
months after the end of a period. Therefore, the time of the audit
procedures varies from the beginning of the accounting period until the end
of the period accounting.
In short, the implementation of an auditor require good judgment in
decision- making is important in determining the type and amount of
appropriate audit evidence, and consideration professionals can be influenced
29
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To increase insight, the author conducted data collection literature. Here is a table
30
Based on theoretical phenomenon all skill checks essentially directed
to present the audit evidence are relevant in order to audit findings. With the
development of the type and form of evidence is certainly needed those skilled in
the art to gather the quality of evidence. Auditors are required to have
qualification
ns to understand the criteria used and should be competent to determine the type
and amount of evidence to be collected in order to reach conclusions right after
the examination. (Arens et al, 2011:5).
In situational phenomenon before the information electronic
transaction (ITE) law was passed, a form of evidence in litigation is evidence set
forth in Law No. 8 1981 on the Law of Criminal Procedure Article 184
31 internal auditor should be more vigilant to evaluate company, because all forms
of common practice helped by electronic media and can be used as audit evidence
to be evaluated. Because today, for supporting evidence, must supported by at
least 2 of 3 categories in information electronic transaction law (ITE) No.11 of
2008 (physical evidence, data, testimony) to reinforce his opinion. However, in
practice auditor can be make inferences bias (audit bias), so giving rise the
resistance or friction which not necessary by the auditee. (Valery G. recurrent,
2011:87).
1¯ ° ± ² ³´µ¶· ¸¹ º ¶³º» ¼º´ µ½ ± ¾¿ ³´yµÀ °± ² ³´· Á ³²º» ¼º
Abou-Seada and Abdel-Kader (2003) in Zakari and Karim Menacere
(2012) state the role of professional expertise is significant in auditing
decisions and especially in the evidence process. Libby and Frederick (1990)
in Ida Suraida (2005), that the more experienced, the more the auditors can
produce various kinds of expectations in explaining the findings of the audit.
Jarboh (2005) in Zakari and Karim Menacere (2012) on the effect of
auditor experience on audit evidence revealed that the well-developed
knowledge structures of experienced auditors help them to consider the risk,
the cost and the time of searching for audit evidence. Bruynseels et al. (2007)
in Zakari and Karim Menacere (2012) concluded that an increased level of
experience is predicted to have an increasing effect on auditors processing of
32 experienced auditor is expected to be more reliable than evidence from a
novice (Bruynseels et al., 2007 in Zakari and Karim Menacere, 2012).
Gusnardi (2003:8) in Budi (2009) argues that the experience of the
audit can be measured from the level of the position in the structure where the
auditor worked, years of experience, a combination of hierarchy and years of
experience, the expertise of auditors relating to the audit, and training have
been followed by the auditor about the audit. Important issues related to the
experience of the auditor will be associated with a level of accuracy auditors.
In short more experience in auditor can increase the ability of auditor
to do auditing and gathering the qualified evidence which useful in making
opinion for the company
2Â Ã Ä Å ÆÇÈÉÊÉÈË ÌÍ Í ÆÈÎ ÏÐÑÄ Å ÒÓÌÎÇÇ ÈÔ Ä ÏÐÆÇyÈËÃÄ Å ÆÇÕ Ö ÆÅÌ Î×Ì
The basis for determining what is sufficient and appropriate evidence
lies with the professional judgment of the auditor (Loughran, 2010).
Meanwhile, according to I Wayan (2010:146) the nature of the audit is the
process of verification by an independent person (impartially) to a
management assertion using judgment (judgment) and historical evidence
(evidential matter).
In short, auditor who have professional judgment easier to get the best
33
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ßàÚÙáâ ãØ ÛâäÜå àÛæ
Found fairly fundamental error in company (PT. Kimia Farma, PT Great River International Tbk. and Satyam Computer Service Ltd.) but the auditor who being audit can t detect the fraud
The inability of the external auditors in auditing and tracing audit evidence that company proves that the auditor has less experienced and poor professional judgment
Basic theory: Agency Theory
The Effect of Experience and Professional Judgment towards Quality of Audit Evidence Collected
(PT PLN (Persero) of Certification Service- Southern Jakarta)
Auditor Experience (X1)
Professional Judgment (X2)
Quality of Audit Evidence Collected
(Y)
Problem Identification, Hyphotesis CPA at South Jakarta, Questioner
Analysis Method
Validity and Reliability
Classic Assumption Test
Hypothesis Test
34 Based on the identification of the problem and the framework has been
described previously, the hypothesis in this research are as follows:
Ha 1: There is significant effect of auditor experience towards quality of audit
evidence collected.
Ha 2: There is a significant effect of auditor professional judgment towards
quality of audit evidence collected.
Ha 3: There are significant effects between auditor experience and professional
ô õö ÷TøR ù ùù
RøSøö úôõûøTõOü ýþOÿ
ö ú
. !
, ! " !
, X cause variable Y (Indriantoro and
Supomo, 2002: 90).
The purpose of this research is to know whether the effect of auditor s experience
and consideration towards quality of audit evidence collected. The research
carried out the research in CPA firm in South Jakarta region based on CPA firm
directory book 2012:
1. CPA firm Drs Heroe Pramono & Partner
2. CPA firm Husni, Mucharam and Rasidi
3. CPA firm Kanaka Purwadiredja, Suhartono
4. CPA firm Razikun Tarkosunaryo
#6
Population is subject or object, which has certain qualities and
characteristic are determined by a researcher. Thus, the population is not only
people but also objects. Population is not only people but also objects or other
natural objects. Population also not only quantity, but includes all of
characteristic s subject or object (Sugiyono, 2009: 80). Sample is a part of
number, and characteristic possessed by the population. Research did not take all
the populations, because due to limited funds, manpower and time. So, sample
can represent the population (Sugiyono, 2009: 81). Researcher use
non-probability samplings are elements of the population do not have the same chance
to select as a sample (Sugiyono, 2009: 84).
A researcher used purposive sampling. There are two types of
purposive sampling method are judgmental sampling and quota sampling. The
researcher used judgmental sampling; a type of sample selection is not random
that the information had obtained by using certain consideration. Elements are
selected as the sample population is restricted to elements, which can provide
information under consideration (Indriantoro and Supomo, 2002: 131). In
judgmental sampling, writer took a sample from employees of CPA firm which
1. Junior auditor have work experience > 2 years
2. Senior Auditor
3. Supervisor
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Primary data is data which collected by researcher from source (Indriantoro
and Supomo, 2002:146). Primary data obtained by through the questionnaire
research and respondent ( as an objective research), type of questions are given closed
question which may answer to determined in advance and respondent are not give
the opportunity to choose another answers.
17 E F GH>yB >:C <D
This method requires to presence of contact or relationship between
researcher and respondent. The data obtained is largely a descriptive data, but
data collection is explaining cause and effect. (Indriantoro and Supomo, 2002:
145). The writer took questioner for this research. The questionnaire as an
efficient technique, when researchers will know certainly about variables which
will be measured and know to expect from the respondent (Sugiyono, 2009: 14).
The researcher divided 3 structured questionnaire using category scale and
I8
In this study, data collection techniques that I use in obtaining the data are:
a. Field Research
Field research is primary data collection by reviewing directly to the CPA.
For this research, the writer took CPA firm in South Jakarta region. Primary
data obtained through interviews and questionnaires, and observations with
the parties concerned with the problem under study.
b. Literature Research
The literature research is a way to obtain secondary data which can provide
theoretical basis to support the data-primary and secondary data obtained
during the study as well as to support the discussion of the identification
problem. These data are derived from books and other references pertaining to
the object under study.
J K J LMLNO LP QR SRTUMV WX
The method of data analysis used in this study is a model of multiple
regression analysis with the help of software SPSS 20 for Windows. Data analysis
was performed by statistical analysis, testing the classical assumptions and
hypothesis testing. Testing classical assumptions include normality test,
[\ ] ^_ `a`by^c ad e_ ` ^f `_`byg eh b
Validity test aims to determine the item of question good or not
include in the questioner. If the validity said valid if the correlation value >
0.30 (Priyatno, 2012: 184). Reliability analyses do after validity test has been
done. In reliability test, just the valid item will input in this test. The result of
the reliability test is measure by Cronbach Alpha. The data said valid if the
Cronbach Alpha > 0.60 (Priyatno, 2012: 187)
i\ j_ ^h h `kg eh bl hhmnob`p ch
Classical test assumption aims to determine the relationship between
the variables in the data. Before conducting regression analyzes, first tested
the classical assumptions to determine whether there is a relationship between
the variables.
a. Normality Test
Normality test aims to test whether the regression model, or
residual confounding variable has a normal distribution. There are two
ways to detect whether or not residual normal distribution, i.e. the graph
analysis and statistical tests (Ghozali, 2009). Normality test can be done
graph or by looking at the histogram from the residual. Basic
decision-making, namely (Ghozali, 2009):
s t If the point spread around the diagonal line and follow the direction of
the diagonal line, the regression model to meet the assumptions of
normality.
2) If the point spread away from the line or diagonal and do not follow
the direction of the diagonal line, the regression model did not meet
the assumptions of normality.
While tools such as statistical tests to Kolmogorov-Smirnov Z (1 - Sample
KS), the basic decision-making (Ghozali, 2009):
1) If the value Asymp. Sig. (2-tailed) less than 0.05, then H0 is rejected.
This means that the data are not normally distributed residuals.
2) If the value Asymp. Sig. (2-tailed) of more than 0.05, then H0 is
accepted. This means that the data were normally distributed residuals.
b. Multicollinearity Test
Multicollinearity test aims to test whether the regression model
found a correlation between the independent variables (Ghozali, 2009:95).
A good regression model should not happen correlation between the
multicollinearity in the regression model can be seen from the value of
tolerance and the variance inflation factor opponent (VIF).
Multicollinearity views of the tolerance value <0.10 or VIF> 10. Both of
these measurements indicate each independent variable which is explained
by the other independent variables.
c. Heteroscedasticity Test
Heteroscedascity test aims to test whether is in a regression model
appear inequality of the residual and variance of observation to other
observations.
w x y z{ |}~ } ~
a. Test Coefficient of Determination (R ²)
The value of adjusted R Squared is always smaller than the value
of R Squared. Adjusted R Squared penalizes to add more repressors.
Unlike R2, adjusted R2 will increase only if the absolute t value of the added variable is greater than 1. The closer it is to 1, the better is the fit.
This means that the independent variable used could explain almost 100%
of the variance in the dependent variable. We know that one of the
R2, thus defined, of necessity lies between 0 and 1. The closer it is to 1, the better is the fit.
b. Individual Parameter or Partial Significance Test. (t-Test)
T test aims to test how far the influence or impact of two
independent variable in the socialization of individual are the auditor
experience and auditor consideration in explaining the dependent variable
is Quality of Audit Evidence. If the significance value > 0.05 then Ha is
rejected, whereas if the significance value of < 0.05 Ha is accepted and we
can compare between t-test and t-table, t-test > t-table.
c. Simultaneous Significance Testing (Test F)
The function of F-test is to see and understand the influence of
both independent variables toward dependent variables. If the significance
value > 0.05 then Ha is rejected, whereas if the significance value of <
0.05 Ha is accepted. To further convince this F test results it can be seen
from the F table, with the following explain:
1) If the value of F test > F table, then Ho is rejected and Ha accepted.
d. Multiple Linear Regression Analysis
The multiple regression analysis can measured partially
(indicated by coefficient of partial regression) jointly indicated by
coefficient of multiple determination (R²), (Indriantoro and Supomo,
2009: 211). In this analysis, we can see how the independent variables,
which are Auditor Experience (X1) and Auditor Professional Judgment
(X2) effect the Quality of Audit Evidence (Y). Multiple linear regression
analysis use to measure the mathematical relationship between more than
two variables. A research model of multiple linear regression equation as
follows:
Y = + 1X1 + 2X2 + e
Y = Quality of Audit Evidence
Coefficient 1 = Regression variable the Auditor Experience
Coefficient 2 = Regression variable the Auditor Professional
Judgment
X1 = Auditor Experience
Based on the title that the author presented the influence of experience
and professional considerations of auditor to audit the quality of the evidence
collected, the operational variables are as follows:
1 ¡ ¢ £ v ¤¥
Variable audit experience (X2) views of his old work as auditor and
number assignment ever handled. This variable is measured by using
indicators developed by Ida Suraida, (2005) in Puspa, (2008).
The questions from the questionnaire combined to audit experience are a long
time to work as an auditor and how many assignments ever handled. Every
questions measured by category scale.
¦ ¡ ¢ § ¨ ©¡ ¢ ª« ¬ ¤¦
Variable auditor's judgment (Y) in this study were considered
auditor. This variable is measured using indicators developed by
Jenkins & Haynes (2003) in Puspa (2008). Auditor's judgment in
This study is limited to the special audit in relation to the first case, which
prompted consideration is how much confidence uncollectible accounts
receivable balances will one debtor clients and how much recommend the
The second case, which prompted judgments, is how much desire to
expand the sample of audit evidence for the inventory trade accounts and how
much his desire to make an adjustment to trade accounts merchandise
inventory.
The third case, which prompted judgments, is how much desire to
expand the indications engineering testing intercompany transactions group
companies and how much desire recommending clients to make an adjustment
to the purchase price difference in the client's financial statements.
¯° ± ² ³ ´ µ ¶·¸¹yº» ¼ µ ½¸¹ ¾¿¸ ½³À Á³ º·· ³Á¹³½ ¶Ã ¶Ä ¶Å ¸¶Æ ·³ ÇÈ Ã ¹ ¶¹³ ½ Æyɵ¹ ¸
¼ ÊµË ³Å µ À ¸ÌÍÎÏÏÐ :
a. Independence from data providers
b. Effectiveness of the internal control structure
c. Knowledge acquired by the auditor
d. Qualifications of the person providing the information
e. Level of objectivity
Each question was measured by using a numerical scale of 5 alternative score
to measure the attitudes of respondents.
Ô6
1. length of worked in an CPA firm 2. frequently absence of audit tasks 3. type of audit duties frequently
a. The desire to expand the sample evidence audit to inventory
a. The desire to expand testing of engineering indications
transaction
Tûü ý þÿ
Rþ þû þ û ûýû ûüý þ þ
!
"
Y= Quality of Audit evidence Puti Ayu Seruni
(2011)
1# Independence from data
providers
$# Effectiveness of the internal
control structure
%# Knowledge acquired by the
auditor
&# Qualifications of the person
providing the information
'# Level of objectivity
12, 13
14, 15
16, 17
18, 19
20, 21
