Professional standard and quality control standards that a public accountant must follow in order to maintain the quality of the work performed. Soobaroyen (2005) in Hutabarat (2012) found that time budget pressure caused the auditors of the audit program significant parts of the left and consequently caused a decrease in audit quality.
Problem Identification
Therefore, the author gave the title of this research: "IMPACT OF INTEGRITY, RESPONSIBILITY AND TIME BUDGET PRESSURE ON AUDIT QUALITY (IN SOME PUBLIC ACCOUNTING FIRMS IN CENTRAL JAKARTA)". Audit quality is said to be influenced by integrity, responsibility, time budget pressure, competence, ethical auditor, independence, professionalism and experienced auditor.
Scope Of Research
Problem Statement
Research Objectivity
Research Contribution
This research also has a purpose as a graduate requirement for the researcher from S1 Accounting Program at Sekolah Tinggi Ilmu Ekonomi Y.A.I. For the Accounting Library Collection, in addition to benefiting various parties, the result of this research is expected to contribute to increasing the number of existing collections of the accounting library.
LITERATURE REVIEW AND HYPOTHESIS
Theory
- Agency Theory
With the existence of an independent auditor, fraud is not expected to occur in the accounts made by the management. So, with the existence of an independent auditor, cheating is not expected to happen in accounts made by the management.
Audit Quality
- Definition Audit
- Type of Audit
- Audit Process
- Auditor Opinion
- Type of Auditor
- Definition Audit Quality
- Standard Audit Quality
- Measures to Improve The Audit Quality
- Indicator Audit Quality
The performance of the task is based on supervisory skills or abilities and is independent. The audit evidence is sufficiently competent to provide an opinion on the financial control of the top.
Integrity
- Definition Integrity
- The Importance of integrity in life
- Indicator Integrity
- Relation Between Integrity with Audit Quality
To become successful then integrity required, because with integrity of purpose or goal in life can be achieved. Similarly, Ayuningtyas (2012) research results, that can affect the integrity of quality inspection results.
Accountability
- Definition Accountability
- Form of accountability
- Auditor Accountability
- Indicator Accountability
- Relation Between Accountibility with Audit Quality
Mabruri and Winarna (2010) showed that auditor integrity has a positive effect on audit quality in the local government environment. This suggests that the higher the integrity owned by public sector auditors at the time they undertake the professional audit engagement, will drive the increasing quality of inspection results. SPAP Section 341 stated that the results of the evaluation conducted indicate a threat to the survival of the company. The auditor is required to evaluate management plans to improve the condition.
Determining a criminal offense is not the competence of the auditor, but the result of the assessment of legal experts.
Time Budet Pressure
- Definition Time Budget Pressure
- Indicator Time Budget Pressure
The time budget communicates to the audit staff which areas the manager or partner believes are critical and require more time. Management, performance appraisal of superiors, inflexible time budget, time budget is the absolute decision of the boss E.3. The timing of the time spent on the audit assignment usually determined the beginning of the assignment.
As the audit tasks time for the second, and so on, the auditors no longer need to learn.
Previous Research
The results of this study indicate that the variables of time budget pressure and audit independence partially influence audit quality. Independence can be intervening variables that indirectly influence the time pressure on audit quality. This study was conducted to determine the effect of professional due diligence, accountability, audit complexity and time pressure on audit quality in the public accounting firm in Denpasar.
Data analysis techniques in this study using multiple linear regression analysis, where the results showed a variable due professional care, accountability positive effect on the audit quality, while the variable complexity of the audit and time budget pressure negatively affect the audit quality.
Theoretical Framework
Hypothesis
RESEARCH METHODOLOGY
- Type of Research
- Variable Operational
- Research Object
- Data Source and Collection
- Type of Data
- Source of Data
- Data Collection Methods
- Population
- Sample Size
- Technic of Sampling
- Data Analysis Method
- Descriptive Statistics
- Data Quality Test
- Classic Assumption Test
- Multiple Linear Regression Analysis Test
- Hypothesis
- Detemination Test
- Simultaneous Significance Test (Statistic F-test)
- Individual Parameter Significance Test (Statistic T-test)
The time budget is used to measure the level of efficiency in performing the auditor's work. And the last one is documentary data, this type of data is in the form of The data used in this study is primary data, a source of data obtained directly from the original source (not through any medium).
The weakness of using the coefficient of determination R2 depends on the dependent variable present in the model.
ANALYSIS AND DISCUSSION
Research Object Description 1. Dependent Variable (Y)
- Independent Variable a. Integrity (X1)
- Data Descriptions
To analyze independent variable (X3) in this study which is Time Budget Pressure, Author using 11 statements in the questionnaire. The table above shows our auditors participating in this research come from different levels of experience. Most of them have experience of less than 3 years with a total amount of 46 auditors with a percentage of 46%.
The table above shows that 85% or 100 auditors (85 auditors) who participated in this research have a Bachelor's degree, 6 auditors with an associate degree in a percentage of 6%, 8 auditors in a percentage of up to 8% have a Master's degree, and only one person has a doctorate degree, which is a percentage of 1%.
Descriptive Statistics Results
The highest value of the independent variable Time Budget Pressure is 52 and the lowest value is 29. Although the average score is 38.19, the value shows that the Time Budget Pressure is quite high. The highest value of the dependent variable of audit quality is 60 and the lowest value is 31.
Although the average score is 50.04, the value shows that the audit quality is quite high.
Data Quality Test Results
- Test Validity
- Test Reliability
All the indicators of the integrity variable (X1) used in this study were found to have a value greater than 0.1966, which is suitable for a sample of 100. It was found that all the indicators of the responsibility variable (X2) used in this study, had a value greater than 0.1966, which is rtable for a sample of 100. It was found that all variable indicators of time budget pressure (X3) used in this study had a ratio greater than 0.1966, which rtable for sample 100.
It turns out that the indicators of audit quality variables (Y) used in this study all have a value rcount greater than 0.1966, that is, rtable for a sample of 100.
Classic Assumption Test Results
- Normality Test
- Multicoloniearity Test
- Heteroscedasticity Test
- Multiple Linear Regression Analysis Test
Thus, we can conclude that the regression equation model does not contain multicollinearity and can be used in this study. The regression coefficient of X1 Comprehensiveness 0.192 states that if X1 increases by one unit and the remaining variable remains the same, the audit quality of Y will increase by 0.192. The regression coefficient of X2 Responsibility 1.207 states that if X1 increases by one unit and the remaining variable remains the same, audit quality Y will increase by 1.207.
The regression coefficient of X3 Time budget pressure 0.108 states that if X1 increases by one unit and the remaining variable remains the same, audit quality Y will increase by 0.108.
Hypothesis testing
- Determination Coefficient (R2)
- Test of Silmutan Significance (Statistic F-Test)
- Individual Parameter Significance T-test (Statistic T-test) T test is the test used to determine whether the
This indicates that the auditor's competence, independence and ethics can explain 65.1% of the audit quality variables, while the remaining 34.9% is influenced by other factors that are not included in this research, such as competence, independence, ethical auditor, the size of the clients , fee audit etc. The integrity variable has a probability significance value of 0.111 higher than 0.05, so it can be concluded that integrity has no influence on audit quality. The accountability variable has a probability significance value of 0.000 lower than 0.05, so it can be concluded that accountability has a significant effect on audit quality.
The time budget pressure variable has a probability significance value of 0.081 higher than 0.05, so it can be concluded that the time budget pressure has no effect on audit quality.
Discussion
The influence of integrity to audit quality
This can be seen from the respondent's response giving a neutral or hesitant opinion on statements 5 and 9. The results of this study are consistent with Justine's (2013) study of integrity has no effect on audit quality. This is due to the close relationship with the client, so the auditor can report the client's mistakes, and the pressure from the client, which causes the auditor's integrity to fall as the auditor's honesty and accountability, which will reduce audit quality.
The influence of accountability to audit quality
The influence of time budget pressure to audit quality
Research (Prasito and Priyo, 2007) shows the result that time-budget pressure negatively affects audit quality. Both Research (Simanjuntak, 2008) shows that time budget pressure makes the auditor inclined to take action which causes the decrease in audit quality. Time budget pressures faced by professionals in the audit field can cause high levels of stress and affect the attitudes, intentions and behavior of auditors (Dezoort, 2002) and reduce their attention to the qualitative aspects of the indications of misrepresentation. potential for fraud. on financial reporting (Braun, 2000).
The influence of integrity, accountability, and time budget pressure to audit quality
The R square of determining the coefficient is 0.651, which simultaneously means that integrity, responsibility and pressure on the time budget influence the quality of the audit 65.1%, while the remaining 34.9% are influenced by other factors such as competence, independence, ethical auditor, client size, audit fee, etc.
CONCLUSION AND SUGGESTION
Conclusion
From the T-test (partial) result, the accountability variable (X2) has a positive and significant effect on audit quality. From the result of the T-test (partial) it is shown that the time budget pressure variable (X3) has a positive and non-significant effect on the quality of the audit. The conclusion is that all variables integrity (X1), accountability (X2) and time budget pressure (X3) simultaneously have a significant impact on audit quality.
Based on table 4.22 (Chapter IV) the result of determining the coefficient, it can be determined that R square 0.651 which means simultaneously the integrity, accountability and time pressure of the budget affect the quality of the audit 65.1% while the rest of 34.9% of influenced by other factors that make them not included in this research such as competence, independence, ethics auditor, fee audit, etc.
Suggestion
Under time budget pressure, there is a tendency to perform actions such as reducing the required audit procedures, reducing the accuracy and effectiveness of gathering audit evidence that can ultimately reduce the quality of the audit. For further research, it is advisable to expand the population so that this research is not only taken from the Central Jakarta area, and to obtain research results with a higher level of generalization. Future study should prepare more cost and time in conducting empirical research in order to further improve data acquisition from respondents.
Next Researchers are suggested to get data in the form of interviews from some auditors who become respondents in the research in order to get more real data and may come out of questionnaires that may be too narrow or less descriptive the real situation.
