Moral reasoning, whistleblowing intention, and audit judgement moderate the effect of ethical sensitivity on internal audit quality
Keywords:
audit judgment , ethical sensitivity, internal audit quality, moral reasoning, whistleblowing intentionAbstract
Empirical research reveals the effect of ethical sensitivity on internal audit quality but it is not always linear because of the role of several contingency factors. The purpose of this study was to determine the effect of ethical sensitivity on internal audit quality. Meanwhile, the specific objective of this research is to determine the ability of contingency factors, such as: moral reasoning, whistleblowing intention, audit judgment moderates the effect of ethical sensitivity on the quality of internal audit. The study population was the internal auditor of PT Bank BUMN "X" Kanwil Bali-Nusra, then the research sample was determined using the saturated sample method. Furthermore, the collected data were tabulated and analyzed using the Moderated Regression Analysis (MRA) technique. The results of this study reveal that: (1) Ethical sensitivity has a positive and significant effect on internal audit quality. (2) Moral reasoning strengthens the positive effect of ethical sensitivity on internal audit quality. (3) Whistleblowing intention strengthens the positive effect of ethical sensitivity on internal audit quality. (4) Audit judgment strengthens the positive effect of ethical sensitivity on internal audit quality.
Downloads
References
Abdolmohammadi, M. H., & Owhoso, V. D. (2000). Auditors’ ethical sensitivity and the assessment of the likelihood of fraud. Managerial Finance.
Adams, M. J. (1994). Beginning to read: Thinking and learning about print. MIT press.
Ahituv, N., Igbaria, M., & Sella, A. V. (1998). The effects of time pressure and completeness of information on decision making. Journal of management information systems, 15(2), 153-172.
Ahmed, S., Haigh, A. M. F., de Jager, C. A., & Garrard, P. (2013). Connected speech as a marker of disease progression in autopsy-proven Alzheimer’s disease. Brain, 136(12), 3727-3737.
Aisyah, E. A., & Sukirman, S. (2015). Hubungan Pengalaman, Time Budget Pressure, Kompensasi Terhadap Kualitas Audit Pada Kantor Akuntan Publik (KAP) Di Kota Semarang. Accounting Analysis Journal, 4(1).
Al-Ajmi, J. (2009). Audit firm, corporate governance, and audit quality: Evidence from Bahrain. Advances in accounting, 25(1), 64-74. https://doi.org/10.1016/j.adiac.2009.02.005
Anderson, G. D., & Ellyson, R. C. (1986). Restructuring professional standards-the anderson report. Journal of Accountancy, 162(3).
Aprianto, D., & Setiawati, E. (2015). Pengaruh Independensi, Pengalaman, Due Professional Care, Akuntabilitas Dan Time Budget Pressure Terhadap Kualitas Audit (Studi Empiris Pada Kantor Akuntan Publik Di Surakarta Dan Yogyakarta) (Doctoral dissertation, Universitas Muhammadiyah Surakarta).
Arens, A. A., Elder, R. J., & Beasley, M. S. (2008). Auditing dan jasa Assurance. Jakarta: Erlangga.
Arisinta, O. (2013). Pengaruh Kompetensi, Independensi, Time Budget Pressure, dan Audit Fee Terhadap Kualitas Audit Pada Kantor Akuntan Publik di Surabaya. Jurnal Ekonomi dan Bisnis Airlangga (JEBA)| Journal of Economics and Business Airlangga, 23(3).
Astika, I. B. P., & Dwirandra, A. A. N. B. (2017). on Fraud Detection Capabilities.
Azad, A. N. (1994). Time budget pressure and filtering of time practices in internal auditing. Managerial Auditing Journal.
Basuki, B., & Mahardani, K. Y. (2006). Pengaruh tekanan anggaran waktu terhadap perilaku disfungsional auditor dan kualitas audit pada kantor akuntan publik di Surabaya. Jurnal Manajemen, Akuntansi & Sistem Informasi, 6(2), 203-223.
Betti, M., Galano, L., & Vignoli, A. (2014). Comparative analysis on the seismic behaviour of unreinforced masonry buildings with flexible diaphragms. Engineering Structures, 61, 195-208. https://doi.org/10.1016/j.engstruct.2013.12.038
Bou?Raad, G. (2000). Internal auditors and a value?added approach: the new business regime. Managerial Auditing Journal.
Christ, M. H., Masli, A., Sharp, N. Y., & Wood, D. A. (2015). Rotational internal audit programs and financial reporting quality: Do compensating controls help?. Accounting, Organizations and Society, 44, 37-59. https://doi.org/10.1016/j.aos.2015.05.004
Chung, J., & Monroe, G. S. (2001). A research note on the effects of gender and task complexity on an audit judgment. Behavioral Research in Accounting, 13(1), 111-125.
De Angelo, L.E. (1981). Auditor Size and Audit Quality. Journal of Accounting and Economics. 3(3), 183?199.
DeZoort, F. T. (1998). Time pressure research in auditing: Implications for practice. The Auditor’s Report, 22(1), 11-12.
Dharmastuti, C., & Wahyudi, S. (2013). The effectivity of internal and external corporate governance mechanisms towards corporate performance. Research Journal of Finance and Accounting, 4(4), 132-139.
Dyck, A., Morse, A., & Zingales, L. (2010). Who blows the whistle on corporate fraud?. The journal of finance, 65(6), 2213-2253.
Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of management review, 14(1), 57-74.
Endicott, L., Bock, T., & Narvaez, D. (2003). Moral reasoning, intercultural development, and multicultural experiences: Relations and cognitive underpinnings. International Journal of Intercultural Relations, 27(4), 403-419. https://doi.org/10.1016/S0147-1767(03)00030-0
Engko, C., & Gudono, G. (2007). Pengaruh Kompleksitas Tugas dan Locus of Control terhadap Hubungan antara Gaya Kepemimpinan dan Kepuasan Kerja Auditor. Jurnal Akuntansi dan Auditing Indonesia, 11(2).
Futri, P. S. (2014). Pengaruh Independensi, Profesionalisme, Tingkat Pendidikan, Etika Profesi, Pengalaman, Kepuasan Kerja Auditor pada Kualitas Audit Kantor Akuntan Publik di Bali. Jurnal Akuntansi, 7(2), 444-461.
Ghozali, I. (2016). Aplikasi Analisis Multivariate Dengan Program SPSS. Semarang: Badan Penerbit Universitas Diponegoro. Greenhalgh-spencer, H.(2005). Performance Theories in Education: Power, Pedagogy,. Educational Studies, 95.
Ghozali, I. (2017). Econometrics Theory, Concepts, and Applications with SPSS 17. Semarang: Diponegoro University Publishing Agency.
Govindarajan, V. (1986). Decentralization, strategy, and effectiveness of strategic business units in multibusiness organizations. Academy of Management Review, 11(4), 844-856.
Hartanto, J. (2001). Analisis & Design Sistem Informasi Pendekatan Terstruktur Teori dan Praktek Aplikasi Bisnis, edisi2. Andi, Yogyakarta.
Herliansyah, Y., & Ilyas, M. (2006). Pengaruh pengalaman auditor terhadap penggunaan bukti tidak relevan dalam auditor judgment. SNA 9 Padang, 23-26.
Hogarth, R. M., & Einhorn, H. J. (1992). Order effects in belief updating: The belief-adjustment model. Cognitive psychology, 24(1), 1-55. https://doi.org/10.1016/0010-0285(92)90002-J
Jamilah, S. ZF, dan GC (2007). “Pengaruh Gender, Tekanan Ketaatan, dan Kompleksitas Tugas Terhadap Audit Judgment”. Simposium Nasional Akuntansi X Unhas Makasar.
Jennings, M. M., Lowe, D. J., & Reckers, P. M. (1998). Causality as an influence on hindsight bias: An empirical examination of judges' evaluation of professional audit judgment. Journal of Accounting and Public Policy, 17(2), 143-167. https://doi.org/10.1016/S0278-4254(97)10003-5
Kang, Y. J., Trotman, A. J., & Trotman, K. T. (2015). The effect of an audit judgment rule on audit committee members’ professional skepticism: The case of accounting estimates. Accounting, Organizations and Society, 46, 59-76. https://doi.org/10.1016/j.aos.2015.03.001
Kristianti, I. (2012). Pengaruh tipe kepribadian dan penerimaan perilaku disfungsional terhadap audit judgment. Universitas Kristen Satya Wacana.
Miceli, R., Sotgiu, I., & Settanni, M. (2008). Disaster preparedness and perception of flood risk: A study in an alpine valley in Italy. Journal of environmental psychology, 28(2), 164-173. https://doi.org/10.1016/j.jenvp.2007.10.006
Mohd?Sanusi, Z., & Mohd?Iskandar, T. (2007). Audit judgment performance: assessing the effect of performance incentives, effort and task complexity. Managerial Auditing Journal.
Muhsyi, Abdul. 2013. Pengaruh Time Budget Pressure, Risiko Kesalahan, dan Kompleksitas terhadap Kualitas Audit. Skripsi. Jakarta: Universitas Islam Negeri Syarif Hidayattulah.
Mukino, M., Purnomo, E., & Suntoro, I. (2016). Penerapan Model Moral Reasoning untuk Membentuk Moralitas dan Karakter Siswa pada Pkn. Jurnal Studi Sosial, 4(1).
Mulyadi. (2013). Pengaruh Pengalaman Kerja, Kompetensi, Independensi, Akuntabilitas, Profesionalisme, dan Kompleksitas Tugas Auditor Terhadap Kualitas Audit (Studi Empiris Pada KAP Surakarta Dan Jogja). BHIRAWA, 1(2, 74?89.
Murray, K. B., & Schlacter, J. L. (1990). The impact of services versus goods on consumers’ assessment of perceived risk and variability. Journal of the Academy of Marketing science, 18(1), 51-65.
Mustika, P. L. K., Stoeckl, N., & Farr, M. (2016). The potential implications of environmental deterioration on business and non-business visitor expenditures in a natural setting: A case study of Australia’s Great Barrier Reef. Tourism Economics, 22(3), 484-504.
Mutmainah, S. (2006). Modul Akuntansi Keperilakuan. Universitas Diponegoro Semarang.
Patel, A. D. (2003). Language, music, syntax and the brain. Nature neuroscience, 6(7), 674-681.
Putra, I. G. C. (2013). Kualitas Audit Kantor Akuntan Publik Di Bali Ditinjau Dari Time Budget Pressure, Risiko Kesalahan, Dan Kompleksitas Audit. Jurnal Ilmiah Akuntansi dan Humanika, 2(2).
Ratha, I. M. D. K., & Ramantha, I. W. (2015). Pengaruh Due Professional Care, Akuntabilitas, Kompleksitas Audit, dan Time Budget Pressure Terhadap Kualitas Audit. E-Jurnal Akuntansi Universitas Udayana, 13(1), 311-339.
Raya, K., Chang, L., Bashir, A., Cobos-Martinez, J. J., Gutiérrez-Guerrero, L. X., Roberts, C. D., & Tandy, P. C. (2016). Structure of the neutral pion and its electromagnetic transition form factor. Physical Review D, 93(7), 074017.
Sanusi, Z. M., Iskandar, T. M., & Poon, J. M. (2007). Effects of goal orientation and task complexity on audit judgment performance. Management & Accounting Review (MAR), 6(2), 123-139.
Sawyer, R. K. (Ed.). (2005). The Cambridge handbook of the learning sciences. Cambridge University Press.
Sunarsih, N. (2017). Influence of Organizational Climate, Motivation, and Job Satisfaction on Employee Performance. Review of Integrative Business and Economics Research, 6, 262.
Suprasto, H. B., Ariyanto, D., Jati, I. K., Widhiyani, N. L. S., & Suryanawa, I. K. (2017). Ability of religiosity and emotional intelligence to moderate the effect of role conflict, role ambiguity, role overload, and job insecurity on burnout of tax consultants in Bali province. Journal of Finance and Accounting, 8(18), 7-15.
Suriana, C. (2014). Maximizing Construction Project and Investment Budget Eficiency with value Engineering. Kompas Gramedia, Jakarta.
Swart, K. W. (2013). The sense of decadence in nineteenth-century France (Vol. 7). Springer Science & Business Media.
Tangsakul, P., & Ussahawanitchakit, P. (2015). Moral reasoning of tax auditors in Thailand: an empirical investigation of the antecedents and Consequences. The Business & Management Review, 7(1), 134.
Wardoyo, T. S., & Seruni, P. A. (2011). Pengaruh Pengalaman dan Pertimbangan Profesional Auditor Terhadap Kualitas Bahan Bukti Audit yang Dikumpulkan (Studi Kasus Pada Kantor Akuntansi Publik di Bandung). Akurat Jurnal Ilmiah Akuntansi, 2(06).
Windsor, C. A. (2002). Auditors' predisposition to provide fair judgments: Australian evidence of auditors' level of moral reasoning. Australian Accounting Review, 12(27), 51-58.
Yustrianthe, R. H. (2012). Beberapa faktor yang mempengaruhi audit judgment auditor pemerintah. Jurnal Dinamika Akuntansi, 4(2).
Published
How to Cite
Issue
Section
Copyright (c) 2020 International research journal of management, IT and social sciences
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Articles published in the International Research Journal of Management, IT and Social sciences (IRJMIS) are available under Creative Commons Attribution Non-Commercial No Derivatives Licence (CC BY-NC-ND 4.0). Authors retain copyright in their work and grant IRJMIS right of first publication under CC BY-NC-ND 4.0. Users have the right to read, download, copy, distribute, print, search, or link to the full texts of articles in this journal, and to use them for any other lawful purpose.
Articles published in IRJMIS can be copied, communicated and shared in their published form for non-commercial purposes provided full attribution is given to the author and the journal. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
This copyright notice applies to articles published in IRJMIS volumes 7 onwards. Please read about the copyright notices for previous volumes under Journal History.
