Finances, accounting and audit

Internal auditor independence and audit quality: the influence of mediation role of professional ethics investigation (on the example of Gorontalo city inspectorate in Indonesia)

Economic Annals-XXI

Economic Annals-XXI: Volume 206, Issue (11-12), Pages: 24-29

Citation information:
Usman, Fitrijanti, T., Soemantri, R., & Koeswayo, P. S. (2023). Internal auditor independence and audit quality: the influence of mediation role of professional ethics investigation (on the example of Gorontalo city inspectorate in Indonesia). Economic Annals-XXI, 206(11-12), 24-29. doi: https://doi.org/10.21003/ea.V206-04

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Usman
PhD (Accounting),
Doctoral Program of Accounting,
Faculty of Economics and Business,
Gorontalo State University
6 Jend. Sudirman., Gorontalo, 96128, Indonesia
usmandaming@ung.ac.id
ORCID ID: https://orcid.org/0000-0002-4282-9058

Tettet Fitrijanti
PhD (Accounting),
Doctoral Program of Accounting,
Faculty of Economics and Business,
Padjadjaran University
35 Dipati Ukur Str., Bandung, 40132, Indonesia
tettet.fitrijanti@unpad.ac.id
ORCID ID: https://orcid.org/0000-0001-8719-0422

Roebiandini Soemantri
PhD (Accounting),
Doctoral Program of Accounting,
Faculty of Economics and Business,
Padjadjaran University
35 Dipati Ukur Str., Bandung, 40132, Indonesia
roebiandini.soemantri@unpad.ac.id
ORCID ID: https://orcid.org/0000-0003-2992-6934

Poppy Sofia Koeswayo
PhD (Accounting),
Doctoral Program of Accounting,
Faculty of Economics and Business,
Padjadjaran University
35 Dipati Ukur Str., Bandung, 40132, Indonesia
poppy.sofia@unpad.ac.id
ORCID ID: https://orcid.org/0000-0002-7064-2602

Internal auditor independence and audit quality: the influence of mediation role of professional ethics investigation (on the example of Gorontalo city inspectorate in Indonesia)

Abstract. This study aims to examine the effect of auditor independence on audit quality at the Gorontalo City Inspectorate, with professional ethics acting as a mediator or moderator variable. The method used in this study is a quantitative method, with primary data collection. This study uses a saturated sample or census, where the entire population is sampled, totalling 54 respondents consisting of 35 auditors and 19 P2UPD (Supervisors of the Implementation of Regional Government Affairs) in 2023. The data used is primary data collected through a questionnaire. The statistical analysis used is a non-parametric method with Partial Least Squares – Structural Equation Model (PLS-SEM) using SmartPLS Version 4 software.

The results of the study indicate a positive and significant influence between internal auditor independence on audit quality through the role of professional ethics. In addition, it was found that the independence of internal auditors also has a positive and significant influence on audit quality at the Gorontalo City Inspectorate, as well as a positive and significant influence on the role of professional audit ethics, which in turn has an impact on the audit quality of the Gorontalo City Inspectorate.

Keywords: Professional Ethics; Auditor Independence; Audit Quality; Internal Auditor; Gorontalo

JEL Classifications: Е24; Е41; Е64; I18; J28; J31

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the author upon request.

DOI: https://doi.org/10.21003/ea.V206-04

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Received 12.08.2023
Received in revised form 19.09.2023
Accepted 29.09.2023
Available online 29.12.2023

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