The Effect of Auditor Judgment and Professional Skepticism on Internal Audit Quality

Abstract

This study aims to examine and analyze the effect of auditor judgment and professional skepticism on the quality of internal audit at the Inspectorates of Central Sulawesi Province and Palu City. This type of research is survey research. Data was collected by distributing questionnaires to 54 auditors working in the Inspectorate of Central Sulawesi Province and Palu City. The analytical tool used is multiple linear regression analysis with the help of SPSS version 16.0 program. The results showed that the auditor's judgment had a positive and significant effect on the quality of internal audit, while professional skepticism had a positive and significant effect on the quality of internal audit. Auditor judgment and professional skepticism simultaneously affect the quality of internal audit.

The Effect of Auditor's Competence, Professionalism, and Organizational Culture on the Quality of Financial Statements

“…HR competence is evaluated using 4 items taken from Nurcahyanti (2022). Internal audit professionals are measured by 4 items developed by Rahmansyah et al (2022), organizational culture is measured by 4 items designed by Putri et al (2022) and lastly financial report quality is measured by 2 items adopted from Putri et al (2022).…”

“…Albawwat et al (2021) mentioned that audit professionalism is a responsibility to act more than just a responsibility to the company. According to Rahmansyah et al (2022) there are several qualifications in measuring audit professionals, namely having experience according to their field of expertise, having competence in their field, and being responsible. A person can be said to be professional if he has attended certain education which causes him to have special skills or qualifications.…”

Audit judgment through time budget pressure, quality of sleep, and ego depletion

“…Independent auditors' professional judgments in their auditing job are referred to as audit judgments (Gibbins, 1984;Rahmansyah et al, 2022). Professional judgments represent collective judgments made at all stages of audit work, including audit planning, audit evidence collection and review, and audit opinion generation.…”

“…The establishment of material cut-off points, the identification of audit objectives, the assessment of the sources and types of risks, and the development of appropriate audit views are all examples of audit judgments. In auditing, audit judgments are extremely important (Hogarth, 1991;Rahmansyah et al, 2022).…”

“…Audit judgment is a professional judgment taken by an independent auditor during the audit process (Gibbins, 1984;Rahmansyah et al, 2022). This judgment includes a series of assessments made in various stages of the audit, from planning, collecting, and evaluating audit evidence, to forming a final audit opinion.…”