Mediating Effects Of Governance on Audit Culture, Internal Control and Audit Quality in Indonesia: Basis for Model

Abstract

The purpose of the research was to investigate the mediated effect of governance on audit culture, internal control and audit quality in in selected Indonesia Ministries and Agencies for the yar 2019 and found a new model. The research was conducted in a quantitative approarch. This study investigated the condition of audit quality in Indonesia, particularly: audit reliability, accuracy, professional ethics awareness, competence, value of recommendation among 422 full-time employees in the Ministries and agencies. Questionnaires were used to gather information. SPSS 23 was used to analyze the data for descriptive, correlational, and predictive purposes, as well as to establish the effect of the respondents' profile. Structural Equation Model for mediation was also utilized. The result indicated that audit culture and internal control have a positive relation to audit quality. Furthermore, the finding showed that the respondent’s sex and educational attainment were not significantly different as regards to the perceptions of the respondent’s about audit quality. As a result of this current study, a new model emerged which indicates that governance partially mediated internal control and audit quality. Further, the result also showed that audit culture has a direct effect on audit quality.