THE EFFECT OF INDEPENDENCE AND EXPERTISE OF THE AUDITORS ON AUDIT QUALITY: BASED ON PERCEPTION OF AUDITORS

Abstract

Qualified  audit opinion  result becomes an  important key for the  users of company financial  statement information. Studies of audit quality becoming  wider and hot issue in the field of financial accounting and auditing with the purpose to increase audit quality on financial statement. This study purpose to find out wheter independence and expertise of the auditors effect audit quality based on perception of auditors. The method used in this research  was descriptive verification, which provide an overview of the occurred perception phenomena, explain the influence between variables on the built and tested hypothesis. The hypothesis testing use partial least squared multivariate method. Data were collected using a questionnaire distributed to seventy auditors as respondents.

Total contribution  of continuous professional  development, experience, formal  education, knowledge and independence  in Determining audit quality was 39.93%. With 95% confidence level, this study resulted that continuous professional development had a significant effect on audit quality. While experience, formal education, knowledge and independence had no significant effect on audit quality.