The Effect of Audit Knowledge, Audit Document Complexity and Auditor Experience towards Audit Judgement of Internal Auditor in West Aceh Inspectorate Office, Indonesia
DOI:
https://doi.org/10.46754/umtjur.v1i2.73Keywords:
Audit Knowledge, Complexity Document Audit, Auditor’s Experience, Audit JudgementAbstract
The audit is a process of overseeing financial reporting and disclosure by evaluating a relatively large amount of alternative information and determining whether it meets accounting standards. Auditors are responsible for issuing audit judgements. The quality of the audit judgement indicates how well the auditors performed their duties. This study examines the effect of audit knowledge, audit document complexity and auditor’s experience on the audit judgements of the internal auditor in the Inspectorate office West Aceh, Indonesia. A quantitative analysis through cross-sectional data was performed to achieve the objective of this study. The primary data were collected through questionnaires administered to 40 auditors comprising 28 auditors with structural positions and 12 auditors with functional positions and analysed using descriptive and inferential statistics involving multiple regression analysis using the Statistical Package for Social Sciences-22. The result of this study showed that the audit knowledge, audit document complexity and auditor experience have a significant effect on the audit judgement of the internal auditor in the Inspectorate office West Aceh, Indonesia. Further, this study found that audit knowledge is the most influential factors affecting the audit judgement of the internal auditor.
References
Ashton, A. H. 1991. Experience And Error Frequency Knowledge As Potential Determinants Of Audit Expertise. The Accounting Review Vo - 66.
Brooks, L. Z., Cheng, C. S. A., & Reichelt, K. J. 2013. Audit Firm Tenure And Audit Quality: Evidence From U.S. Firms. ssrn. https://doi.org/10.2139/ssrn.2201350
Coulter, J. M. 1994. The Effects Of Audit Experience And Probability Knowledge On Auditors’ Use Of Heuristics In Judgments Under Uncertainty. Dissertation Abstracts International Section A: Humanities And Social Sciences.
Hair, J. F., Black, W. C. W. C., Babin, B. J., Anderson, R. E., Babin, B. J., & Black, W. C. W. C. 2010. Multivariate Data Analysis: A Global Perspective. Vectors. https://doi.org/10.1016/j.ijpharm.2011.02.019
Hanjani, A., & Rahardja. 2014. Effects Of Auditor Ethics, Auditor Experience, Fee Audit, And Audit Motivation On Audit Quality (Study Of Kap Auditors In Semarang). Diponegoro Journal Of Accounting. https://doi.org/10.1016/j.exer.2014.10.014rs0014-4835(14)00284-X [pii]
Haynes, C. M., Jenkins, J. G., & Nutt, S. R. 1998. The Relationship Between Client Advocacy And Audit Experience: An Exploratory Analysis. Auditing. https://doi.org/doi 10.1016/j.landusepol.2008.10.016
Hogarth, R. M., & Einhorn, H. J. 1992. Order Effects In Belief Updating: The Belief-Adjustment Model. Cognitive Psychology. https://doi.org/10.1016/0010-0285(92)90002-j
Indonesian Accounting Association. 2010. Professional Standar Of Public Accountant. Jakarta, Indonesia: Salemba Empat Publishing.
Knapp, M. 1985. Audit Conflit: An Empirical Study Of The Perceived Ability Of Auditors To Resist Management Pressure. The Accounting Review. https://doi.org/10.2307/246786
Kolb, A. Y., & Kolb, D. A. 2009. Experiential Learning Theory: A Dynamic, Holistic Approach To Management Learning, Education And Development. Sage Handbook Of Management Learning, Education And Development.
Mala, R., & Chand, P. 2015. Judgment And Decision-Making Research In Auditing And Accounting: Future Research Implications Of Person, Task, And Environment Perspective. Accounting Perspectives. https://doi.org/10.1111/1911-3838.12040
Masrizal. 2010. The Influence Of Audit Experience And Knowledge On Detection Of Findings Of Losses (Study At The Aceh Inspectorate Auditor). Jurnal Telaah & Riset Akuntansi.
Messier, W. F. 2003. Auditing And Assurance: A Systematic Approach. Mcgraw-Hill. https://doi.org/10.3386/w11785
Nadirsyah, Indriani, M., & Usman, I. 2011. Effect Of Audit Time Budget, Complexity Of Audit Documents And Auditor's Experience On Consideration Of Audit Sampling At The Financial Examination Agency (Bpk) Of The Republic Of Indonesia Representative Of Aceh Province. Jurnal Telaah & Riset Akuntansi.
Nelson, M., & Tan, H. T. 2005. Judgment And Decision Making Research In Auditing: A Task, Person, And Interpersonal Interaction Perspective. In Auditing. https://doi.org/10.2139/ssrn.761706
Nelson, M. W., Libby, R., & Bonner, S. E. 1995. Knowledge Structure And The Estimation Of Conditional Probabilities In Audit Planning. The Accounting Review.
Nyoman Ayu Suryandari, N., Mahasaraswati Denpasar Bali, U., & Anik Yuesti, I. 2017. Profesional Scepticism And Auditors Ability To Detect Fraud Based On Workloads And Characteristics Of Auditors. Scientific Research Journal (scirj).
Pandoyo. 2016. The Effect Of Auditor Competence, Independence, Audit Experience, Organizational Culture And Leadership Against Auditor Professionalism And Its Implication On Audit Quality. International Journal Of Advanced Research.
Ponemon, L. A., & Wendell, J. P. 1995. Judgmental Versus Random Sampling In Auditing - An Experimental Investigation. Auditing-A Journal Of Practice & Theory.
Praditaningrum, A., & Januarti, I. 2012. Analysis Of The Factors That Influence Audit Judgment (Study On The Republic Of Indonesia Bpk Representative Of Central Java Province). Retrieved From http://eprints.undip.ac.id/35528/
Prihartini, A. K., Sulindawati, L. G. E., & Darmawan, N. A. S. 2015. Effect Of Competence, Independence, Objectivity, Integrity And Accountability On Audit Quality In Local Government (Empirical Study At 5 Inspectorate Offices Of Bali Province). E-Journal S1 Ak Universitas Pendidikan Ganesha.
Rahmawati, Y. 2013. Effects Of Audit Risk, Audit Experience, And Audit Complexity On Auditor Considerations (Study Of The Bpk-Ri Representative Office Of The Aceh Representative). Unsyiah.
Sari, I. P. 2016. Gender Influence, Obedience Pressure, Task Complexity, Auditor Experience, Auditor Knowledge And Audit Document Complexity Against Audit Judgment (Empirical Study At The Central Indonesian Supreme Audit Agency). Jurnal Online Mahasiswa Fakultas Ekonomi Universitas Riau, 3(1), 2008–2022.
Schafer, B. A. 2007. Accountability And Affect In Auditor Judgment. ssrn. Https://doi.org/10.2139/ssrn.1010762
Shek, W. Y., Cheung, C. F., Lee, W. B., & Chong, Y. Y. 2007. Systematic Knowledge Auditing: A Case Study In A Power Utility Company. Journal Of Information & Knowledge Management. https://doi.org/10.1142/s0219649207001809
Shelton, S. W. 1999. The Effect Of Experience On The Use Of Irrelevant Evidence In Auditor Judgment. Accounting Review. https://doi.org/10.2308/accr.1999.74.2.217
Stuart, I., & Prawitt, D. F. 2004. The Influence Of Audit Structure On Auditors’ Performance In High And Low Complexity Task Settings. ssrn. https://doi.org/10.2139/ssrn.569871
Sukriah, I., Akram, & Inapty, B. A. 2009. The Influence Of Work Experience, Independence, Objectivity, Integrity And Competence On Quality Of Audit Decision. sna. https://doi.org/10.1017/cbo9781107415324.004
Susanti, R. 2012. The Influence Of Moral Considerations, Compliance Pressure, And Complexity Of Tasks On The Aceh Inspectorate Audit Judgment. Unsyiah.
Tan, H.-T., & Kao, A. 1999. Accountability Effects On Auditors’ Performance: Influence Of Knowledge, Problem-Solving Ability, And Task Complexity. ssrn. https://doi.org/10.2139/ssrn.147869
Yustrianthe, R. H. 2012. Several Factors Affecting Government Audit Auditor Judgment. Jurnal Dinamika Akuntansi. Https://doi.org/10.1017/cbo9781107415324.004
