The Competency and Independency Auditors to Audit Quality at Auditors of Public Accountant in Palembang (Published)
This study aims to test the competency and independency of the Auditor on the Quality Audit Office Public Accountant Auditor Palembang. The study sample as many as 39 registered Public Accountants in Palembang, used multiple regression analysis. The results of calculations using SPSS, showed that:1) R2 of 0.499, illustrates that the quality of the audit, can be explained by the dependent variables amounted to 49.9%, while the remaining 51,1%, can be explained by other factors, which are not included in this study. ;2) Obtained value of F(7.309) Sig(0,000), means that there is a significant influence of dependent variables together to quality audit; 3) there are no significant effect from experience, knowledge, and non audit services on the quality of audit; 4) and there are significant effect of long relationships with clients, pressure from clients, and review co-auditors on audit quality.
Keywords: Audit Quality, Experience, Knowledge, Non-audit services, long relationships with clients, pressure from clients, review co-auditor
AUDITOR INDEPENDENCE AND THE PROVISION OF NON-AUDIT SERVICES–INVESTORS’ PERSPECTIVE IN NIGERIA (Published)
Based on the assumption that non-audit fees compromise auditor’s independence and result in lower quality services, the Sarbarnes-Oxley Act of 2002 bans certain non-audit services for audit clients. The link between non-audit services and required auditor’s independence has been heavily debated by accounting scholars. The purpose of this study is to identify the threats to auditors’ independence, and to examine the relationship between auditor’s independence and non-audit services. The lack of clear definition of auditor independence contributes to the resilience of this debate. The Sarbanes-Oxley Act (2002) prescribed a list of non-audit services essentially to help restore investor confidence in the reliability of financial information. A survey design using well-structured questionnaire was used to collect data. Respondents were sampled from five sectors of the Nigerian economy: Banking, Brewery, Chemical & Paints, Conglomerates, and Health. The non-parametric statistical tests used in this study include the Kruskal-Wallis Test and the Mann-Whitney U Tests to draw inferential conclusions regarding the data collected since the data collected from the different categories of respondents. The findings indicate that the provision of non-audit services significantly affects investors’ perceptions of auditor independence, and there is high correlation between auditors’ independence and non-audit services in Nigeria. To maintain public confidence, auditors should continually assess their standing in the community. Any reduction in confidence in the auditing profession will immediately reflect a lack of confidence in audited financial statements, leading to an overall decline of trust in the country’s capital market.
Keywords: Auditor Independence, Non-audit services, Sarbanes-Oxley Act., conglomerates