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The effect of quality control system on audit quality: Professional skepticism as the moderator variable

Author

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  • Khansa Shahibah

    (Accounting Department, Faculty of Economics and Business, Brawijaya University, Indonesia)

  • Bambang Hariadi

    (Accounting Department, Faculty of Economics and Business, Brawijaya University, Indonesia)

  • Zaki Baridwan

    (Accounting Department, Faculty of Economics and Business, Brawijaya University, Indonesia)

Abstract

The objective of this research id to assess the effect of Quality Control System elements. i.e. relevant ethical terms and independency, on audit quality and to identify the moderating role of professional skepticism on the effect of quality control system on audit quality. The population of this research auditor working in Indonesian Big Ten public accounting firms, from which 252 auditors were selected as the sample. Using PLS-based SEM in SmartPLS, this study finds that relevant ethical terms and independency affect audit quality and that professional skepticism moderates the effect of independence on audit quality, but it does not moderate the effect of relevant ethical terms on audit quality. Key Words: Quality control system elements, relevant ethical terms, independency, professional skepticism, audit quality

Suggested Citation

  • Khansa Shahibah & Bambang Hariadi & Zaki Baridwan, 2020. "The effect of quality control system on audit quality: Professional skepticism as the moderator variable," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 419-425, July.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:4:p:419-425
    DOI: 10.20525/ijrbs.v9i4.782
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    References listed on IDEAS

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    1. Tsui, Judy S. L., 1996. "Auditors' ethical reasoning: Some audit conflict and cross cultural evidence," The International Journal of Accounting, Elsevier, vol. 31(1), pages 121-133.
    2. Ball, Fiona & Tyler, Jonathan & Wells, Peter, 2015. "Is audit quality impacted by auditor relationships?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 11(2), pages 166-181.
    3. Daniels, Bobbie W. & Booker, Quinton, 2011. "The effects of audit firm rotation on perceived auditor independence and audit quality," Research in Accounting Regulation, Elsevier, vol. 23(1), pages 78-82.
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