The influence of auditor independence, moral integrity on compliance audit violation triggers attitude
Vina Merliana vina.merliana@inaba.ac.id
Department of Accounting, Faculty of Economics and Business, University of Indonesia Membangun (INABA), Bandung, Indonesia
Abstract
The purpose of this study is to evaluate the impact of auditor independence, moral integrity on violations of compliance audit trigger attitudes, because attitudes can determine a person's character to carry out an intentional or unintentional action, a person's morals come out of oneself, influenced from outside that can damage the mind. The sample size is 35 respondents.
The quantitative research methodology employed in this study includes sampling utilizing the probability sampling method along with descriptive and verification approaches. The findings revealed that auditor independence has a insignificant positive effect on compliance audit violations that trigger attitudes, and the same moral integrity has a insignificant positive effect on those same violations. Auditors are professional, thus, any other immoral acts they avoid at all cost.
Keywords: compliance audit violation triggers attitude; independent auditors; moral integrity
Abstrak
Penelitian ini bertujuan untuk mengetahui pengaruh independensi auditor, integritas moral terhadap pelanggaran compliance audit pemicu sikap, karena sikap dapat menentukan karakter seseorang untuk melakukan suatu tindakan yang disengaja maupun tidak disengaja, moral sesorang keluar dari diri sendiri, dipengaruhi berasal dari luar yang dapat merusak pikiran. Jumlah sampel 35 responden. Metode penelitian yang digunakan dalam penelitian ini adalah metode kuantitatif dengan pendekatan deskriptif dan verifikatif dengan pengambilan sampel menggunakan metode Probability sampling. Hasil penelitian menunjukkan bahwa independensi auditor berpengaruh positif tidak signifikan terhadap pelanggaran compliance audit pemicu sikap, dan integritas moral sama menunjukkan pengaruh positif tidak signifikan terhadap pelanggaran compliance audit pemicu sikap, sedangkan independensi auditor.
Auditor bersikap profesional, oleh karena itu, tindakan tidak bermoral lainnya mereka hindari dengan sepenuhnya.
Kata kunci: pelanggaran compliance audit pemicu sikap; independensi auditor; integritas mora
INTRODUCTION
When the auditor conducts an examination within the company to ensure 100%
compliance leads to applicable regulations, the organization or corporation must ensure compliance with the rules both internally and externally. A compliance audit, also known as an activity audit, examines the financial records of an organization to see if it has followed any rules, policies, or procedures that have been established by a higher authority. The goal of the audit is to adhere to established regulations or compliance Naturally, checking to see if the audited customer has adhered to the procedures and procedures in line with the audit standards
Compliance audits are conducted to determine whether the auditee (client) has followed specific procedures, rules, or regulations implemented by some higher authorities, such as legal provisions, government regulations, loan requirements from banks and others.The results of compliance audits are usually not reported to outside parties but are only reported to the parties involved in the creation of these criteria. The head of the organization is a party who has an interest in each other or obeys the established rules, therefore they are the ones who employ the auditors. Arens, et al (2017:36)
Consistence reviews are led to decide if the auditee (client) has followed explicit systems, rules, or guidelines executed by a few higher specialists, like lawful arrangements, unofficial laws, credit prerequisites from banks and others. The aftereffects of consistence reviews are normally not answered to outside parties but rather are simply answered to the gatherings engaged with the production of these models. The top of the association is a party who has an interest in one another or submits to the laid out rules, in this manner they are the ones who utilize the examiners. Arens, et al (2017:36
A reviewer should observe relevant review guidelines as well as following a code of expert morals that manages the way of behaving of an examiner in completing his expert practice both with individual individuals and in the organization. This set of rules controls the standards of expert obligation, public interest, honesty, objectivity, freedom, ability and expert reasonability classification, proficient way of behaving and specialized norms for a reviewer in completing his calling. Mulyadi (2017:54)
Independence is needed by an external auditor in providing audit services provided to users of financial statements. In addition, auditor independence is a very important factor in assessing the quality or quality of audit services. Rahayu and Suryono (2016)
Significance in the realm of reviewing, the demeanor of respectability as an evaluator is a commitment to review sincerely without penetrating budget reports and should shape a key person for proficient acknowledgment that makes quality form trust locally, hence expecting examiners to tell the truth and clear inside t Uprightness is the mentality of an individual to genuineness who can acknowledge unexpected mix-ups and acknowledge an assessment or idea from others, yet honesty can acknowledge cheating or refutation of standards. (Santoso et al, 2020), integrity prioritizes honesty even if it hurts coworkers, expressed in acting transparently.
Marks of integrity are the trustworthiness of the examiner the mental fortitude of the inspector, the savvy demeanor of the reviewer, the obligation of the evaluator. In completing his evaluating obligations, an evaluator isn't simply expected to be a specialist in examining, yet additionally expected to be uprightness. Albeit a reviewer has high skill in evaluating yet doesn't have a disposition of integrity, Then the client will not believe the information presented. Agoes (2012)
There is a licence suspension for violating auditing standards (SA), professional standards for public accountants (SPAP) in conducting audits of financial statements, one of
which is manipulating reports on the fairness of financial statements, and cases that violate the compliance audit or compliance audit, especially in companies, require the services of an accountable auditor profession and are required to have integrity and have high expertise in auditing, especially violating the rules.
LITERATURE REVIEW
Financial statements
Financial statements are a structured presentation of the financial position and financial performance of an entity. One of the purposes of financial statements is to present information about the financial situation and flow of the entity of a company in order to make economic decisions or to take appropriate policies, according to Kasmir (2019:104), "Financial statements are "the activity of comparing figures contained in financial statements. A comparison can be made between one component and the component in one financial report or between the components contained between financial reports." Based on the Kashmir definition, financial statements benefit current and future corporate account users. This is because financial information can be determined for decision making and financial information is required both externally and internally.
Definition of auditor
According to Agoes (2019: 3) Auditing is "a theoretical and critical examination by an independent party of the financial statements prepared by the management, together with records and accounts supported by evidence to express an opinion on the obligation regarding the financial report." An auditor must possess the knowledge necessary to gather pertinent and trustworthy audit evidence that will aid in determining the state of the organisation. Having a good relationship with the customer is not permitted in order to uphold an auditor's reputation.
Violation of audit compliance triggers attitude
Attitude is the emotional aspect of oneself expressed through feelings, ideas, prejudices, fears, actions and threats. An individual's attitude influences or is influenced by others through the mental values of their personality. Audit violations or fraud related to financial reporting misstatements that may intentionally omit face value or disclosures in the financial statements are distinguished from evidence that must be provided to users of the financial statements.
Several cheating practices have taken place, including: Manipulate, falsify, or alter any accounting records or supporting documents that serve as the source of data for the presentation of the financial statements; Intentional application of accounting principles in terms of number, classification, presentation or disclosure may be considered a violation of auditing standards.
SA (Auditing Standards) Section 230 (PSAK No. 04) requires performance auditors to obtain reasonable assurance that the financial statements are free of material misstatement, including material misstatement due to fraud.
According to Mulyadi (2017) A compliance audit is like a check up to see if something follows all the rules. It is done to make sure that everything is being done the right way. The rusults of the audit are usually tell the people in charge if everything is being done correctly based on certain rules. Judges should have an attitude that is not influenced by other and does not influence them.
Independence of auditors
Independence is a state of mind that is not subject to the influence of others, internal or external, and auditors are not easily dominated or dependent on others, including directors.
Independence can also be interpreted as an honest attitude on the part of the auditor who considers the facts and can objectively explain the distortions in the knowledge obtained by the client. Auditors are also impartial to company owners or their employees. Auditors must be able to formulate and express opinions in accordance with the institution. Independence can be interpreted as the attitude of an unaffected mind, whose behavior is independent of and controlled by others. According to Mulyadi (2017). On the other hand, the independence index can be divided into two parts. independence in the fact that the auditor is performing the audit independently because the client is paying for his services, and independence in appearance that the auditor sells the requested services. An auditor who can maintain a mental attitude, keeping in mind the needs and agency of the client.
H1: There is an effect of auditor independence on triggering audit compliance violations.
Moral integrity
Integrity is the most important thing or key a leader must have. Integrity can be described as a concept related to consistency in actions, values, methods, means, and the implementation of principles. According to Yaumi (2016:66) "synergy is the integrity between ethics and morality, the more the two are integrated the higher the level of integrity that exists so that integrity can produce exemplary traits such as honesty, sincerity, responsibility and loyalty which involve basic beliefs in the truth of something that is firmly embedded in a person's meaning". Some of the components that include integrity are honesty, in line between words and actions, do not violate the rules and always comply with regulations and have an ethical spirit of organization, must hold between actions and applicable principles, be responsible for the authority of the client, have the value of making decisions to provide opinions, and dare to risk the findings of the examination, have high individual quality with the aim of saving respect from others for advice, fulfill consistent adherence to moral principles, can distinguish between good and bad to do, and motivate others to do the right thing.
H2: There is an effect of moral integrity on violations of audit compliance triggering attitudes.
Figure 1. Research framework
RESEARCH METHODS
According to Sugiyono (2019:16) quantitative research methods is used to study a specific population or sample. Sampling methods are generally random. Data collection using
Independence of auditors
Moral integrity
Compliance audit violation triggers attitude
research instruments. Data analysis is quantitative/statistical aimed at verifying a given hypothesis.” Sugiyono (2018:5) A descriptive approach is "a study to determine the value of an independent variable, either one or more variables (independent), without comparison or association with other variables". Sugiyono (2018:6) A testable approach is “an evidence-based research method that tests hypotheses of descriptive research results with statistical computations to produce evidence results that show that is refused or accepted hypothesis.”
Population
The research method used is quantitative with a population of 35 respondents. According to Sugiyono (2019: 126) population is "a generalization area consisting of objects / subjects that have certain qualities and characteristics set by researchers to study and then draw conclusions." Data collection techniques for library research and field research. Sampling is done by purposive sampling.
Descriptive statistical analysis
Descriptive data is used to describe data and make inferences about it in general. The actual score is derived from the respondent's calculated results according to the specified weight classification (1, 2, 3, 4, 5).
Verified statistical analysis
A testable method is a research method aimed at finding a relationship between two or more variables, or a method used to test the veracity of a hypothesis by using the variable (Y) violation of compliance audit trigger attitude, variable (X1) auditor independence and variable (X2) moral integrity.
Classic assumption test Data normality test
According to Sugiyono (2020: 75) normality test is “used to examine the normality of the variables under study whether the data is normally distributed or not." This is important because if the data for each variable is not normal, then hypothesis testing cannot use parametric statistics. According to Ghozali (2018: 161) the basis for decision making used in the Kolmogorov Smirnov test is as follows; if the P value significant <0.05 the data distribution is not normal, otherwise, if the P value significant > 0.05 the data distribution is normal.
Multicollinearity test
According to Ghozali (2018: 107) the purpose of the multicollinearity test is "to test whether the regression model found a correlation or relationship between independent variables (independent). according to Ghozali (2018: 104) is "if the tolerant value> 0.10 or the VIF value
< 10 then there is no multicollinearity between the independent variables." On the contrary, if the tolerance value is ≤ or the VIF value is ≥ 10, there is multicollinearity between the independent variables.
Heteroscedasticity test
According to Ghozali (2018: 137) Heterogeneity detection, which involves checking for the presence or absence of certain patterns in a point cloud.
Multiple Linear Regression Test
According to Sugiyono (2020: 275) the purpose of multiple linear regression analysis is to "predict how the state (ups and downs) of the dependent variable when two or more independent variables as predictor factors are manipulated (increased and decreased in value)".
Y = α + β₁X₁ + β₂X₂ + ei
Where:
Y : Compliance audit violation triggers attitude, X1 : Independensi auditor;
X2 : Integritas moral, e : Standard error.
Partial Test (t-test)
Partial tests are used to test each variable for whether there is an impact between the variables (X1) auditor independence, (X2) moral integrity, and (Y) behavioral violations that trigger audit compliance. will be According to Pandoyo and Sofyan (2018:308) “The t-test aims to test whether the parameters (regression coefficients and constants) used to estimate multiple linear regression equations/models are already exact parameters. The exact point of the is that they allow us to model behavior at will: to account for variables that affect the variables they are bound to."
Simultaneous test (f-test)
Simultaneous testing is utilized to test variables X1, X2 against Y. According to Pandoyo and Sofyan (2018:232), the f-test is “the first step in identifying regression models that are presumed to be feasible or infeasible, where feasible (reliable) means that the estimated model is free to explain tie. It means that it is feasible to assess the impact of variables." using a 5% risk level or significance.
RESULT
Descriptive Statistical Test Results
Tabel 1. Validity testing
Variable No. Item r count r table Description
Compliance audit violation triggers
attitude P.1 0,3053 0,2826 Valid
P.2 0,2927 0,2826 Valid
(Y) P.3 0,2975 0,2826 Valid
Auditor indepensdence (X1)
P.1 0,3966 0,2826 Valid
P.2 0,5506 0,2826 Valid
P.3 0,5641 0,2826 Valid
P.4 0,5149 0,2826 Valid
P.5 0,5694 0,2826 Valid
P.6 0,3333 0,2826 Valid
P.7 0,3581 0,2826 Valid
P.8 0,3638 0,2826 Valid
P.9 0,4078 0,2826 Valid
Moral integrity (X2)
P.1 0,8162 0,2826 Valid
P.2 0,8162 0,2826 Valid
P.3 0,7635 0,2826 Valid
P.4 0,7588 0,2826 Valid
P.5 0,7493 0,2826 Valid
P.6 0,7797 0,2826 Valid
P.7 0,7787 0,2826 Valid
P.8 0,7682 0,2826 Valid
P.9 0,6847 0,2826 Valid
P.10 0,6847 0,2826 Valid
P.11 0,6587 0,2826 Valid
P.12 0,6589 0,2826 Valid
Source: Data processed
Validity tests “are used to measure whether a questionnaire is valid or not. A questionnaire is said to be valid if the questions in the questionnaire are capable of revealing something measured by the questionnaire” according to Ghozali (2018:52). Based on Table 1, the validity test results of each variable are declared to be valid with significance value <0.05.
Table 2. Reliability testing
Cronbach alfa value Coefficient value r Conclusions
0,916 0,60 Reliable
Source: Data processed
According to Ghozali (2018: 47), reliability testing is "a measurement tool used to measure a questionnaire that is an indicator of a variable or construct. A questionnaire is said to be reliable or trustworthy if someone's answer to a question is consistent or stable over time." A variable is considered reliable if it produces a Cronbach alpha value > 0.70. A value of 0.60 - 0.70 is still acceptable. The coefficient lies between 0 and 1, the closer to 1 the greater the reliability of the measuring instrument and the higher the consistency. Based on table 2, the results of the Reliability test can be concluded to be reliable with a Cronbach alfa value of 0.916 from all variables and a coefficient value of r 0.60.
Table 3. Normality test (Kolmogorov-Smirnov)
Element Unstandardized residual
N 35
Normal parameters ᵃ.ᵇ Mean 0
Std. deviation 1,469
Most extreme differences Absolut 2,919
Positive 0,240
Negative -0,749
Test statistic 0.749
Asymp. sig. (2-tailed) .200
a. test distribusi is normal Source: Data processed
If the significant value is < 0.05 then the distribution of the data is not normal and if the significant value is > 0.05 then the distribution of the data is normal. The hypothesis used: Ho: the residual data is normally distributed and Ha: the residual data is not normally distributed.
The results of the normality test, the K-S method shown in Table 3 indicates a significance of 0.200, so it is normally distributed.
Table 4. Multicollinearity test
R r² Tolerance VIF
X1, X2 -0,1014 0,01029 0,9897 1,0104 Source: Data processed
If the tolerance value > 10" If the tolerance value > 0. 10 or VIF value < 10, then multicollinearity does not occur between independent variables. On the contrary, multicollinearity occurs between independent variables if the tolerance value is ≤ or the VIF value is ≥ 10.
Based on the multicollinearity test results in Table 4, it can be concluded that <10 means there is no multicollinearity phenomenon.
Table 5. Heteroscedasticity test
Coefficients Standard error t - stat P- value
Intercept 1,0603 1,1608 0,9133 0,3678
X1 0,0179 0,0204 0,8815 0,3846
X2 -0,00924 0,0138 -0,6674 0,5093
Source: Data processed
If the significance of the correlation result is less than 0.05 (5%), the regression equation is said to be heterogeneous. If the resulting correlation is greater than 0.05 (5%), the equation does not contain heterogeneous variance. Based on Table 5 above, the inhomogeneity test results do not show any symptoms of inhomogeneity because the value is greater than >0.05.
Table 6. Autocorrelation test
R R square Adjusted R square standard error Durbin Watson
0,1780 0,0317 -0,0288 1,5033 1,0078
Source: Data processed
This is the result of the Durbin Watson (DW) value compared to the two values in the Waston table, DU (Durbin Upper) and Durbin Lower (DL), indicating that if autocorrelation exists, the DW value will be > DU and (4-DW) > DU or it can also be denoted as (4-DW) >
DU < DW to determine negative or positive autocorrelation. Based on the results of the autocorrelation test in Table 6, it is shown that (d) 1.0078 < (df) 1.3433 means there is positive autocorrelation.
Table 7. Multiple linear regression test
Coefficients Standard Error t Stat P-value
Intercept 10,593 2,896 3,658 0,001
X1 0,042 0,051 0,820 0,418
X2 0,024 0,035 0,691 0,494
Y= 10,593 + 0,042 X1 + 0,024 X2 + e Source: Data processed
Based on Table 7, the results of the multiple linear regression test by obtaining the basic equation with a constant value of 10.593 show that audit compliance violations will cause attitudes when the independence of auditors and ethical integrity are of constant value. As for the value of the independent variable auditor has a coefficient value of 0.042, it shows a positive sign in the sense that he has a mental attitude that cannot be influenced by others and is not
easily controlled by each person. The result of the ethical integrity variable has a positive value of 0.024, which shows honesty, loyalty and responsibility. But all variables have no significant values on compliance audit violation triggers attitude.
Table 8. Coefficient of determination
R R Square Adjusted R Square Std. error
0,1779 0,0316 0,0288 1,5033
Source: Data processed
It is known that R squared is equal to 0.0316, which means knowing the degree of influence of each independent variable on the dependent variable in part, this shows the influence of the auditor's independence and financial integrity. ethical aspect to compliance audit causes attitude violation is 0.0316 or 31.6% and the remaining is 68.4.% by factors other than this study.
Table 9. F test (simultaneous)
Df SS MS F Significance F
Regression 2 2,365699266 1,182849633 0,523384685 0,597496685 Residual 32 72,32001502 2,260000469
Total 34 74,68571429
Source: Data processed
The F-test simultaneously aims to determine whether there is an effect of all the variables on the auditor's independence and ethical integrity, and then perform a significant F- test (anova). If the P value of the F value < ɑ (0.05), then Ho is rejected and if the P value of F value > ɑ (0.05), then Ho is accepted. The F-test results (simultaneous) are discussed based on Table 9, the significance value is 0.597 > 0.05. This means there are no significant effects on each other.
DISCUSSION
According to the discussion of the test results, there is no significant effect between the variables auditor independence and ethical integrity on attitudinal violations leading to compliance audits. It is so, because the attitude trigger means that the attitude reflects the extent to which it can maintain value. about a loyal attitude towards an organization by feeling the feeling of liking or disliking someone because they have different thoughts. Models of human behavior can describe a situation in which attitudes are said to represent a willingness to act that leads to behavior. Therefore, there can be an attitude of people who are not committed to compliance, especially those who work as auditors need to be honest, responsible and decisive in nature, which leads to audit compliance violations or violate audit decisions. Thus, further research needed to analyze the other measurements of auditor independence and ethical integrity on audit compliance violations by including important samples and new related variables.
CONCLUSION AND IMPLICATION
Based on a partial t-test testing the hypothesis of the impact of auditor independence and ethical integrity on attitudinal violations leading to compliance audits, each variable has
no significant impact. It can be concluded that independence is the auditor's attitude towards not being influenced by the client or other parties for personal gain, the auditor should not take the side of anyone and respect the moral integrity. When a company requests an auditor to assist in performing an audit and report that the financial statements are free of reported material misstatements according to predetermined criteria, the auditor is also a qualified person. professional and trained, have independent thinking and moreover, auditors must be honest, have professional capacity and be careful and thorough. According to Mulyadi (2017), an auditor is a professional accountant who provides auditing services to clients and their job is to review financial statements to ensure they are free of material errors. The listener also cannot separate the influence of attitude in the sense that attitude is a reaction to accomplish an object in a certain way, attitude is a social role that describes rights, duties, obligations and actions. is suitable for people holding a certain position. in certain social contexts. Ethical integrity is a person's steadfast attitude, not easily influenced by any side, having an honest and transparent attitude so that the most subtle results show significant value and have a positive impact.
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