Do Ethical Attributes Matter More than Independence? The Moderating Role of Auditor Integrity in Government Audit Quality

Yusniati Yusniati; Farid Fajrin; Mustakim Muchlis

doi:10.61220/

Authors

Yusniati Universitas Islam Negeri Alauddin Makassar Author
Farid Fajrin Universitas Islam Negeri Alauddin Makassar Author
Mustakim Muchlis Universitas Islam Negeri Alauddin Makassar Author

DOI:

https://doi.org/10.61220/

Keywords:

Auditor integrity, Audit quality, Ethical sensitivity, Independence, Spiritual intelligence

Abstract

This study aims to examine the influence of independence, spiritual intelligence, and ethical sensitivity on government audit quality, while further investigating the role of auditor integrity as a moderating variable. Employing a causal quantitative approach, primary data were gathered through a questionnaire survey administered to internal auditors at the Provincial Inspectorate of South Sulawesi. Hypothesis testing was conducted using multiple linear regression and Moderated Regression Analysis (MRA). The findings reveal that spiritual intelligence and ethical sensitivity exert a positive and significant impact on audit quality, whereas auditor independence does not exhibit a significant effect. Furthermore, auditor integrity is empirically proven to moderate the relationships between spiritual intelligence and audit quality, as well as between ethical sensitivity and audit quality; however, it fails to moderate the relationship between auditor independence and audit quality. These findings indicate that public sector audit quality is more profoundly determined by the auditor’s value and ethical dimensions rather than mere structural independence. Theoretically, this research enriches the literature on public sector auditing grounded in stewardship and professional ethics; practically, the results emphasize the necessity of strengthening the integrity and ethical capacity of government internal auditors.

References

Adzra, A. (2021). Ethical sensitivity dan kualitas audit pada auditor sektor publik. Jurnal Akuntansi dan Auditing Indonesia, 25(2), 145–158.

Arindea, M. R. (2019). Pengaruh independensi dan kompetensi auditor terhadap kualitas audit internal pemerintah. Jurnal Akuntansi Multiparadigma, 10(1), 65–80.

BPKP. (2020). Pedoman pengawasan intern pemerintah. Badan Pengawasan Keuangan dan Pembangunan.

Christopher, J., Sarens, G., & Leung, P. (2009). A critical analysis of the independence of the internal audit function: Evidence from Australia. Accounting, Auditing & Accountability Journal, 22(2), 200–220.

Christopher, J., Sarens, G., & Leung, P. (2015). Independence, objectivity, and the role of internal audit. Accounting, Auditing & Accountability Journal, 28(2), 219–245.

Craft, J. L. (2013). A review of the empirical ethical decision-making literature. Journal of Business Ethics, 117(2), 221–259.

Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1), 20–47.

DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3(3), 183–199.

Dewi, A. A. A. R., & Wirakusuma, M. G. (2018). Pengaruh kecerdasan spiritual terhadap perilaku etis auditor. E-Jurnal Akuntansi Universitas Udayana, 23(2), 1285–1312.

Eulerich, M., Kremin, J., & Wood, D. A. (2023). Internal audit independence and objectivity: A review and research agenda. Journal of Accounting Literature, 50, 100–121.

Fry, L. W. (2003). Toward a theory of spiritual leadership. The Leadership Quarterly, 14(6), 693–727.

Fry, L. W., & Slocum, J. W. (2008). Maximizing the triple bottom line through spiritual leadership. Organizational Dynamics, 37(1), 86–96.

Goodwin, J., & Yeo, T. Y. (2001). Two factors affecting internal audit independence and objectivity. International Journal of Auditing, 5(2), 107–125.

Hay, D., & Cordery, C. (2018). The value of public sector audit. Journal of Accounting Literature, 40, 1–15.

Himawati, R., Nugroho, P. I., & Handayani, R. S. (2017). Integritas auditor dan kualitas audit internal pemerintah. Jurnal Akuntansi dan Keuangan Indonesia, 14(1), 45–60.

IAASB. (2014). A framework for audit quality. International Auditing and Assurance Standards Board.

INTOSAI. (2019). Guidance on internal audit effectiveness in the public sector.

Julita, A., Sari, R. N., & Ramantha, I. W. (2017). Independensi auditor dan kualitas audit sektor publik. Jurnal Akuntansi Publik, 5(2), 101–115.

Kusuma, I. G. A. (2018). Kecerdasan spiritual dan kualitas audit pemerintah. E-Jurnal Akuntansi Universitas Udayana, 25(3), 1875–1902.

Laksita, G. A., & Sukirno. (2019). Independensi auditor internal dan kualitas audit pemerintah daerah. Jurnal Akuntansi dan Auditing Indonesia, 23(1), 34–47.

Merawati, L. K., & Ariska, N. P. D. (2018). Ethical sensitivity dan kualitas keputusan audit. Jurnal Ilmiah Akuntansi dan Bisnis, 13(1), 15–28.

OECD. (2020). Public sector integrity: A strategy for reform. OECD Publishing.

Primasari, N. H., & Fidiana. (2020). Ethical sensitivity, integritas auditor, dan kualitas audit. Jurnal Akuntansi Multiparadigma, 11(2), 356–372.

Rest, J. R. (1986). Moral development: Advances in research and theory. Praeger.

Ridho, M., & Rini. (2014). Kecerdasan spiritual dan perilaku etis auditor. Jurnal Akuntansi, 18*(1), 89–104.

Rossita, I., & Sukartha, I. M. (2017). Integritas auditor sebagai determinan kualitas audit sektor publik. E-Jurnal Akuntansi Universitas Udayana, 21(1), 456–482.

Shaub, M. K., Finn, D. W., & Munter, P. (1993). The effects of auditors’ ethical orientation on commitment and ethical sensitivity. Behavioral Research in Accounting, 5, 145–169.

Treviño, L. K., Weaver, G. R., & Reynolds, S. J. (2006). Behavioral ethics in organizations. Journal of Management, 32(6), 951–990.

Wiratama, W. J., & Budiartha, I. K. (2015). Pengaruh independensi dan profesionalisme auditor terhadap kualitas audit. E-Jurnal Akuntansi Universitas Udayana, 11(3), 845–860.

Zohar, D., & Marshall, I. (2007). Spiritual capital: Wealth we can live by. Bloomsbury.