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Organizational Commitments in Financial Service Audit With Antecedents of Organizational Justice and Job Satisfaction

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  • Petrus Ridaryanto

Abstract

Public trust in a profession is determined by the reliability, accuracy, timeliness, and quality of services or services that can be provided by the auditor profession. Although the auditor's work and performance procedures have tended to be supervised and determined strictly and formally by external institutions, studies have shown that the context of the internal environment has an effect on improving auditor performance. This study seeks to analyze the effect of organizational justice and job satisfaction in the auditor's environment on organizational commitment. It focuses more on behavioral accounting, specifically relating to the auditor's work environment, by taking the object of the treatment's influence in the organization's internal participation and involvement of auditors that is reflected by organizational commitment. By using the Structural Equation Model (SEM), the findings show that procedural justice and interactional justice are empirically proven to influence organizational commitment. On the other hand, distributive justice has no effect on organizational commitment, and job satisfaction has also been proven empirically to have no effect on organizational commitment. These results provide input for public accounting firms so as not to overlook the fairness factor in providing rewards to auditors. In the case of fairness the awarding of rewards / awards to the auditor is not only limited to the amount of reward, but also the process for determining the amount of the reward.

Suggested Citation

  • Petrus Ridaryanto, 2020. "Organizational Commitments in Financial Service Audit With Antecedents of Organizational Justice and Job Satisfaction," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 86-95, July.
  • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:4:p:86-95
    DOI: 10.5430/ijfr.v11n4p86
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    References listed on IDEAS

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