the ethics moderating effect of competence, experience and ...

1

THE ETHICS MODERATING EFFECT OF COMPETENCE,

EXPERIENCE AND INDEPENDENCE ON QUALITY OF

INSPECTORATE EXAMINATION RESULTS

Authors :

1. I Kadek Yogi Astrawan* #

Email: [email protected]

2. Ni Putu Sri Harta Mimba*

Email: [email protected]

3. A.A.N.B. Dwirandra*

*Faculty of Economics and Business

Udayana University

Bali - Indonesia

# Contacs Author:

Phone : +62 853 333 202 3

2

THE ETHICS MODERATING EFFECT OF COMPETENCE,

EXPERIENCE AND INDEPENDENCE ON QUALITY OF

INSPECTORATE EXAMINATION RESULTS

ABSTRACT The purpose of this research is to find empirical evidence about ability of ethics examiner

moderating influence of competence, work experience and independence on the quality of

the examination results Klungkung District Inspectorate. The data used in this study was

obtained from the whole apparatus Inspectorate Klungkung regency. Data collected

through questionnaires. The method of determining the data used is the method of census.

The number of respondents in this research is 34 people. Data analysis method used is

Moderated Regression Analysis. The results showed that the ethics examiner is unable to

moderate the influence of competence on the quality of the examiner, but ethics examiner

able to moderate the influence of work experience on the quality of the examination results.

Research also shows that ethics examiner is unable to moderate the influence independency

on the quality of the examination results.

Keywords: competence, experience, independence, ethics, the examination

INTRODUCTION

The phenomenon that can be observed in the development of the public

sector today is the growing strength of public demand for the implementation of

public accountability by public sector organizations (Mardiasmo, 2009). Increased

public awareness of the public administration of trigger the emergence of turmoil

rooted in dissatisfaction where higher demands filed against accountability

provided by the trust state officials mandated to them (Mahsun, 2006).

Transparency and accountability is a prerequisite for the effectiveness of

governance. Accountability is a complex concept that is more difficult to realize

than combate corruption (Turner and Hulme, 1997).

Supervision is one of the important elements in order to answer to the

demands of the implementation of the performance assessment of accountability

of public sector organizations towards the realization of good governance (Halim,

3

2007). Supervision function helps to keep the target set by the organization can be

achieved, as well as play a role in early detection of irregularities implementation,

abuse of authority, waste and leakage (Sukriah et al, 2009). Examination of

financial statements is supervision carried out by the examiner / auditor

independent of the financial statements presented by his client to express an

opinion on the fairness of the financial statements (Mulyadi, 2002). The quality of

the examination results is an indicator of an assessment of the surveillance

conducted by the examiner apparatus. Examination results that have good quality

are expected to provide a guarantee of good governance transparency and

responsible (Rai, 2008). Inspectorate as the internal auditor of local government

has a very important role as an oversight function in creating pemeritahan good

governance, free of corruption, collusion and nepotism.

There is matter of corruption cases which local governments drew public

attention, even implicated in the investigation by law enforcement. Of the nine

districts in the province of Bali, some districts never became public and media

spotlight on the cases of corruption that ensnared government officials, even to the

realm of law. One of the local governments in Bali of public concern at the

moment is Klungkung. Over the past five years LKPD Klungkung still get WDP

opinion of BPK audit results. However, the most public attention are some cases

that occurred in Klungkung regency government one problem cases involving

former or current officials as suspects by the results of the investigation the State

Attorney Klungkung. This is allegedly due to lack of supervision and quality

4

maximum internal examination results conducted by the district administration

Inspectorate Klungkung regency.

The quality of the results of the examination conducted by the Inspectorate

Klungkung is still into the public spotlight, because there are many audit findings

were not detected by the apparatus inspectorates as internal auditor, but was found

by the external auditor that the BPK. On average the findings of BPK RI during

the last year is greater than the findings of the Inspectorate of Klungkung. With

the average BPK RI greater the number of findings quantity less than the findings

of the Inspectorate officials Klungkung, this means that the results of the

examination conducted by BPK RI is more effective. Therefore, it can be said that

it is the quality of the inspection apparatus Klungkung District Inspectorate is still

relatively low compared to the results of the examination of the BPK RI.

The good of quality examination results can be achieved when an examiner

has the competence, experience and independence sufficient work well too. The

phenomenon of the quality of the examination results are not necessarily only

influenced by the above factors, but also depends on the existence of contingency

factors, one of which is ethical examiner may impact the achievement of the

quality level examination results that have been done.

Skills and knowledge of examination is an important factor associated with

the provision of audit opinion, in which it is included as an indicator of the quality

of the audit. Conceptually high competence possessed examiner will give good

quality results of the examination. One of the things that cause less than the

maximum competence examiners apparatus is lack of education and vocational

5

training inspectors apparatus auditor through the auditor's certification of

functional position.

With the mutation between work units that exist in Klungkung regency

administration and mutation between the Inspectorate with other local work unit,

causing an experienced officers replaced by officers who are not experienced in

performing the inspection and supervision area. This indicates that the work

experience affect the quality of the audit.

Independency of the internal and external factors affect the level of quality

inspectors test results performed (BPKP, 2009). As an internal auditor in general,

including the inspectorate officials in Klungkung district government under the

influence of the highest policy making area is Regent. This means that the

authority upon examination conducted Inspectorate is responsible for internal

party area (Regent) and not to external parties, so that sometimes the tests carried

out are in a leadership party intervention between work units and power holders

and the holders of the highest policy area. Besides, judging from the number of

civil servants Klungkung district government as much as 5421 people out of a

population of 175 053 people led to the possibility of much closeness of

interpersonal relationships among employees, good relations of kinship or other

interests. This can affect indepensi Klungkung District Inspectorate officers in

performing their duties as internal watchdog area.

Ethics of the examiner is also expected to weaken and strengthen the

influence of competence, work experience and independence to the quality of the

examination results. It is supported by the results of research Alim et al (2007),

Aprianti (2010) and Kharismatuti (2012) which examined the ethics of auditors as

6

a moderating affect the quality of the audit / inspection. Examiner apparatus must

comply with the code of conduct that govern the behavior of officials in carrying

out the practice of his profession well with fellow team members as well as to the

object of examination. Code of conduct governing the professional responsibility

and professional behavior and technical standards for an auditor / inspector in

carrying out his profession (Mulyadi, 2009). The quality of the results of the

examination conducted by the examiner wanted the supervisory authorities a

clean, dignified, orderly and regularly carry out their duties and functions in

accordance with the provisions and norms. Not infrequently scandal cases

including several cases in Klungkung regency administration is associated with

ethics and behavior examiner apparatus beyond norms and rules that apply. This

study aimed to get empirical evidence about the ability of the examiner

moderating influence ethical competence, work experience and independence of

the Inspectorate checks the quality of Klungkung

THEORITICAL REVIEW

Agency Problem Of Theory

Jensen and Meckling (1976) defines the Agency Theory as an agency

relationship as a contract in which one or more person (principal) hire another

person (the agent) to perform some service on their behalf by delegating some

decision-making authority to the agents. This theory arises because the principal

7

and agent have interests that are not aligned that assumes that each individual is

motivated solely by self-interest, giving rise to a conflict of interest between

principal and agent of delegating tasks given to an agent where the agent is not in

the interests of maximizing welfare principal, but have a tendency to be selfish at

the expense of the owner.

Leruth and Paul (2007) stated that the problem of agency occurs when

cheating is generally derived from the aim to minimize the level of effort in order

to improve the compensation received through the abuse of public office for its

own sake that is interpreted in the form of corruption. Agency theory problems are

pervasive in modern economies as well as broad in scope division of labor and

specialization (Besley and Ghatak, 2014). Reduce and minimize fraud committed

in the delivery of accountability could affect the asymmetry of information, it is

necessary to control and inspection by the given authority in the implementation

of supervision. Delegation of authority delegated by government oversight to

internal government watchdog agency in this case is the Inspectorate. Information

on the results of the examination report of the Inspectorate is used as the basis of

economic considerations in decision making at the same time a performance

evaluation tool for the creation of accountability for good governance.

Attribution Theory

Heider (1958) states that the attribution theory is a theory that explains the

process of how we determine the cause and motive of personal behavior.

Situational factors that cause a person's behavior in social perception called

atributions and situational dispositional attributions (Gordon and Graham, 2006).

8

Dispositional attributions or internal causes which refers to aspects of individual

behavior which exist in a person such as personality, self-perception, ability,

motivation. While situational attributions or external causes which refers to the

surrounding environment that can influence behavior, such as social conditions,

social values, and perceptions. In other words, any actions or ideas that will be

performed by someone to be influenced by internal factors and external factors

such individuals.

In this study, researchers used attribution theory because this theory can

explain the inspector internal factors, namely indepensi especially personal

characteristics, competence and work experience that affect the quality of the

examination results. In addition, ethics examiner will also be able to weaken and

possibly able to strengthen the influence of internal factors. Basically the personal

characteristics of an examiner is one determinant of the quality of the results of

the examination will be done because it will be taken into consideration in the

determination of economic decisions for the creation of government

accountability.

Examination (Audit)

Law of the Republic of Indonesia No. 15 Year 2004 concerning

Management and Accountability Examination of State Finance, stated that the

examination is a process of problem identification, analysis, and evaluation

conducted independently, objectively, and professional standards based on

examination, to assess the truth, accuracy, credibility, and reliability of

information about management and the financial responsibility of the state.

9

Understanding audit is a systematic process to obtain and evaluate evidence

objectively about statements about events and economic events, with the aim to

establish the level of concordance between these statements with established

criteria, as well as the delivery of results to the user concerned ( Bastian, 2003).

Kohler (1976) states that the auditing is the process of collecting and evaluating

evidence regarding the information to determine and report the level of

concordance between the information with the criteria. Auditing should be done

by someone who is competent and independent.

The quality of Examination Results

Angelo (1981) defines quality audit as the probability in which an auditor

discovered and reported on the existence of an infringement in the accounting

system of its clients. Deis and Giroux (1992) explained that the ability to find a

material misstatement in the financial statements of the company depends on the

competence of auditors, while the willingness to report the findings misstatement

depends on independence. Pusdiklatwas BPKP defines that the quality of the

examination results is the probability of an auditor or examiner can find and report

a fraud occurred in an agency or government.

Demands the implementation of audit in the public sector this is the purpose

of providing public services economically, efficiently and effectively as a logical

consequence of the delegation of authority and responsibility in the use of funds,

whether from central government or local governments themselves (Mardiasmo,

2009) , In order for the implementation of the management of public funds is

transparent mandated by taking into account value for money, we need a quality

10

examination are both by auditors who have the characteristics of independence,

competence and adequate work experience.

Competence

Competence is the qualifications required by the auditors to conduct the

audit properly (Rai, 2008). In conducting the audit, an auditor must have a good

personal quality, adequate knowledge, as well as specialized expertise in the field.

Competencies related to professional skills possessed by the auditor as a result of

formal education, professional examinations and participation in education and

training.

In the standard audit mentioned that the audit should be conducted by

people who have sufficient expertise and technical training as an auditor who is

able to carry out the task of supervision in accordance with Auditing Standards.

Accordingly, the auditor has not met the requirements if he did not have adequate

education and training in the field of auditing. In a government audit, the auditor

is required to have and improve the ability or expertise through education and

training certification auditor functional.

Work Experience

Work experience is the experience of the auditor in auditing the auditor in

terms of length of working as an auditor and the number of inspection tasks that

have been performed (Nugraha, 2012). The experience is a learning process and

increase the development potential of good behavior from the formal and non-

formal education or could be interpreted as a process that brings a person to a

pattern of behavior that is higher. Work experience can deepen and expand the

11

working capabilities. The more often a person doing the same job, the more

skilled and the sooner he finished the job. The more kinds of work done by

someone, his experience increasingly rich and extensive, and allows increased

performance (Sembiring, 2012).

An auditor must have experience in audit activities (Mulyadi, 2002). Formal

education and work experience in the profession of auditors are two important and

complementary. The experience can be measured with a span that has been used

for a task or job. So it can be said that a person if doing the same work

continuously, it will be faster and better in the finish. This is because he has really

understood the technique or how to solve them, and has undergone many various

obstacles or errors in the work, so it can be more careful and cautious solve

Independency

Independence is a mental attitude that is free from influence, not controlled

by the other party, and not dependent by another party (Mulyadi, 2002). Auditors

are not justified favor of the interests of anyone. To fulfill their professional

responsibility, the government auditor should be independent because he is

carrying out work in the public interest. Independency also means that there is

honesty in the auditor in considering the facts and the existence of an impartial

objective consideration within the auditor to formulate and express their opinions.

The independence shy away from relationships that could impair the objectivity of

an auditor.

Pusdiklatwas BPKP (2009) stated that the Independent is not depend on

something else or no bias in attitude. Independent auditor will allow concerned be

12

objective. The existence of a problem in one measure of independence would

undermine user confidence report on the objectivity of the audit results. Attitude

independent auditor with accuracy and precision supported performed by an

auditor is expected to produce audit quality is getting better, every opinion given

by the auditor and presentation that has followed the guidelines outlined in the

auditing standards (Pratiwi, 2013).

Ethics

Ethics are often referred to by the code of conduct in principle is a system of

moral principles are applied in a defined occupational groups together (BPKP,

2009). Auditors have an obligation to maintain the highest standards of ethical

behavior to the organization in which they take shelter, their profession, society

and themselves, where an auditor has the responsibility of being the components

and to maintain the integrity and objectivity of their (Aprianti, 2010). Satava, et al.

(2009) states that the problems faced in improving the quality of the audit is to

improve the attitude or behavior of supervisory authorities in carrying out the

examination, so that oversight is conducted can run fairly, effectively and

efficiently. Thus, ethics also contributed in improving audit quality.

Ethics is a moral principle and practice that underlie a person's actions so

what it does is seen by the public as a commendable act and improve the dignity

and honor of one (Douglas and Wier, 2006). According to the Dictionary of

Accounting Ethics is a personal discipline in relation to the environment is more

than what is simply determined by the Act (Kohler, 1979). Ethics or rules of

conduct so-called Code of Conduct stipulated in the Regulation of the Minister of

13

Administrative Reform number: PER/04/M.PAN/03/2008, are made to be

followed in carrying out the assignment behave or oversight in regulating the

behavior of auditors in accordance with the demands of the profession and the

organization of supervision and auditing standards is a measure of the quality of

the minimum that must be achieved auditors in performing audit tasks aimed to

foster trust and maintain the organization's image in the eyes of society.

HYPOTHESIS

Boynton (2001) states the function of internal auditor is to carry out an

internal audit function is an independent appraisal function within an organization.

Internal audit system is crucial in helping achieve government officials report that

is efficient and effective government (Sterck, 2006). The achievement of good

governance report is influenced by the quality of the results of the examination the

maximum of internal auditors. Definition of audit quality by Angelo (1981) is a

possibility or probability that the auditor will find and report violations to the

client's accounting system. Maximum audit quality can be achieved by

considering the factors of competence, work experience, and independence of the

inspectors and the apparatus can not be separated from the individual

characteristics factors that ethics examiner.

First Hypothesis (H1)

Tjun (2012) states that the auditor need competence to improve the

relevance of financial statements. Alim (2007) found that the higher the auditor

competency, the better quality of the results of the examination. This opinion is

14

supported by the results of research Son (2012), Yusri (2012), Arisanti (2012),

Ning (2013), Pratiwi (2013), Efendy (2010), Subhan (2011), and Septriani (2011)

empirically found auditor competence affect the quality of the audit results. Liana

(2014), Samsi (2013) and Affandi (2013) obtain different empirical evidence, that

competence does not affect the quality of the examination results. Quality

inspection is not necessarily influenced by the understanding and the high

competence of the apparatus examiner (Lowenshon, et al., 2005). Audit quality

attributes, one of which is the high ethical standards, while other attributes related

to the competence of auditors (Cushing, 1999). Karismatuti (2012) and Aprianti

(2010) to get the results that ethical interactions with competence effect on audit

quality. Tomescu (2013) find understanding more ethical decisions in the public

sector, community organizations that maintain the integrity of the trust through

ethical practices. Satava (2006) states that the accountants and auditors involved

have to follow the basic rules of ethics perspective resulting in the emergence of a

wave of scandals and unethical behavior. With the competency of inspectors to

produce quality examination results, will depend on the ethical behavior of

officials examiner.

H1 : examiners ethical able to moderate the effect of competence on the quality

of the examination results.

Second Hypothesis (H2)

Research conducted Slamet (2011) and supported by empirical results

Sembiring (2012), Sukriah (2009), Martini (2011), Aini (2009) and Syafitri

(2014) said the auditor's experience will continue to increase along with the

15

number of audits carried out so that it will add and expand their knowledge in the

field of auditing. Liana (2014) stated that the experience does not affect the

auditor's expertise, so the experience was not influenced the quality of the auditor.

Systems and their reactions are influenced by the values and ethics related to work

(Douglas, 2005). One very important characteristic of auditors, which violated

internal control objectives, are found to increase with experience (Tubbs, 1992).

Ionescu (2010) claimed that the biggest challenge ahead for the auditor is to

identify how the ethical behavior can be controlled. Samsi (2013) found that

ethical interaction with work experience significant effect on audit quality.

H2 : examiners ethical able to moderate the effect of work experience on the

quality of the examination results.

Third Hypothesis (H3)

Blann (2010) in his research stating that the independence of auditors

sometimes become murky issues are complex. Beautiful (2010) found that the longer

the tenure of audit, audit quality will decrease. Kadhafi (2014) states that the auditor

should have an independent attitude in collecting any audit information for decision

making. Research Lauso (2013) concluded that the possibility of interpersonal

relationships with clients will affect the attitude of the independence of the auditor in

performing their duties. But according Kisnawati (2013) concluded that audit quality

is not affected by independence. Audit quality is influenced by teamwork, and

motivation they have in the works (Ayuningtyas, 2012). Lin (2014) stated that the

main threat is related to the independence of incentives, perception, and behavior of

the auditor with the client. Deis (1992) argues that the auditor's ability to survive

16

under pressure from their clients depending on the economic agreement, certain

environmental and ethical professional behavior.

H3 : examiners ethical able to moderate the effect of independence on the quality

of the examination results.

RESEARCH METHODS

Research location

The location study performed at Klungkung District Government, especially

in Inspectorate Klungkung with address at Jalan Gajah Mada No. 66 Semarapura

Klungkung. The object of research used in this study are all examiner Inspectorate

Klungkung regency.

Data Sources

The data used in this study are primary data. Primary data obtained from the

answers renponden using a structured questionnaire in order to gather information

from examiners in Klungkung regency Inspekorat as respondents.

Population and Sample

The population in this study are all examiner officials who participated in

the task of inspection, as many as 34 people. Sample selection method used is the

census, which is distributing questionnaires conducted in all populations.

Instruments and Data Collection Techniques

The instrument used was a questionnaire consisting of five sections contains

a number of questions related to each variable. Data was collected by distributing

questionnaires and interviews are accompanied by a written request and an

17

explanation of the purpose of the research conducted. Questionnaires were

returned to be selected in advance to ensure the completeness of the answers of

the questionnaire as desired for tabulated and tested the validity and reliability test

data.

Data Analysis Technique

Data analysis technique of this research is to use statistical methods

Moderated Regression Analysis (MRA). Before the data were analyzed, first

tested the classical assumption of normality test, multicolinearity test, and

heterokedastisitas test.

RESULTS AND DISCUSSION

Descriptive Data Respondents

Respondents in this study were all officers who participated in the

inspection task, as many as 34 people who consist of 1 inspector, 1 Secretary, 3

Ka. Sub. Section, 4 Assistant Inspector, 12 Head of Section, and 13 staff. The data

of respondents by Level of Golongan and Level of Education can be seen in Table

1 and Table 2 below:

18

Table 1.

The respondents by Level of Golongan

No. Level Man (%) Women (%) Tot (%)

1. Golongan IV/c 1 2,94 - - 1 2,94

Golongan IV/b 1 2,94 - - 1 2,94

Golongan IV/a 3 8,82 - - 3 8,82

Golongan III/d 4 11,76 2 5,88 6 17,65

Golongan III/c 5 14,71 4 11,76 9 26,47

Golongan III/b 2 5,88 1 2,94 3 8,82

Golongan III/a 5 14,71 2 5,88 7 20,59

Golongan II/b 1 2,94 2 5,88 3 8,82

Golongan I/b 1 2,94 - - 1 2,94

Total 23 67,65 11 32,35 34 100

Resource: Inspectorate Klungkung, 2015

Table 2.

The respondents by Level of Education

No. Level Man (%) Women (%) Tot (%)

1. Magister 1 2,94 1 2,94 2 5,88

Academician 17 50,00 8 23,53 25 73,53

Diploma 2 5,88 - - 2 5,88

High School 2 5,88 2 5,88 4 11,76

primary school 1 2,94 - - 1 2,94

Total 23 67,65 11 32,35 34 100

Resource: Inspectorate Klungkung, 2015

Return of Questionnaire Rate

Questionnaires were distributed as many as 34 copies to the authorities

within the Inspectorate of Klungkung began on March 23, 2015 and the collection

of returned questionnaires conducted on March 27, 2015. Questionnaires were

19

distributed completely back and able to be processed is well. So the rate of return

the questionnaire in this study as much as 100%.

Validity and Reliability Test Results

The validity testing of the instrument is done by looking at the correlation

value total in the column Pearson Correlation with SPSS. If the value is greater

than the value of r tables (0.339) with significance level below 5%, the instrument

is said to be valid. The validity of test results obtained correlation value total

instrument variable of competency is 0.480; 0.708; 0.549; 0.518; 0.606; 0.690;

0,711; 0.634; 0,656; and 0.622. Total correlation value of instruments variable of

work experience by 0.510; 0.594; 0.587; 0.658; 0.501; 0.676; 0.622; and 0.733.

Total correlation value instrument variable of independence is 0.666; 0.688;

0.570; 0.619; 0.449; 0.761; 0,765; 0.399; and 0.486. Total correlation value

instruments variable of ethics is 0.601; 0.622; 0.651; 0,470; 0.693; 0.767; 0.651;

0.706; and 0.669. While the total correlation value of the instrument variable of

quality examination results 0.487; 0.639; 0.756; 0.694; 0.603; 0.776; 0.730; 0.740;

0.732; 0,747; 0.610; and 0.774. Based on the results of the correlation values of

all total instrument variables is positive and greater than the value of r table

(0.339) with significance below 0.05, which means that all questions can be said

is valid.

Reliability testing is done by looking at the value of Cronbach alpha. If

cronbach`s alpha coefficient> 0.60, then the instrument can be said is reliable.

Instrument reliability test results of each variable competence, work experience,

independence, ethics and the quality of the examination results is equal to 0.811;

20

0.759; 0.785; 0.821; and 0.894. Coefficient Cronbach`s alpha values of all

variables greater than 0.60, it can be said that all the instruments variables used in

this study is reliable.

Statistical Analysis of Test Results

Statistical methods were used in the regression analysis in this study is

Moderated Regression Analysis (MRA), and the regression results can be

presented in Table 3. below:

Table 3.

Regression Analysis Test Results

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B

Std.

Error Beta

1 (Constant) -23,161 8,171 -2,835 0,009

moderasi1 -0,171 0,571 -0,945 -0,299 0,767

moderasi2 -0,883 0,426 -6,393 -2,071 0,048

moderasi3 -0,682 0,366 -4,641 -1,864 0,074

2 Fhitung 4,319

Sig.hitung 0,003

3 R

2 0,538

Adjusted R

2 0,413

Resource: Results of data processed, 2015

Goodness of Fit Test

The feasibility of the model used in this study can be determined by looking

at the magnitude of p-value obtained from the regression. Based on Table 3 it can

be seen that the regression model had a p-value (Sig. F Change) of 0,003. This

21

value is smaller than α (5%), so it can be said that the model in this study meets

the feasibility of test (Goodness of Fit).

Coefficient of Determination Test

The coefficient of determination (R2) is a measure of how far the ability of

the model to explain variations in the dependent variable. The test results can be

seen in the coefficient of determination R square columns. Based on Table 3. In

the above, it can be seen the value of R square is 0.538, it means that the

variability of the dependent variable can be explained by the variability of the

independent variable at 53.8%, while the remaining 46.2% is explained by other

variables not included in the regression model , So it can be said that the models

tested in this study is quite good.

First Hypothesis of Result Test (H1)

Moderasi1 regression results are presented in Table 3. are shown a

significant level of 0.767> 0.05, it indicates that the interaction variable examiner

ethics and competence has no effect on the quality of the examination results. The

results of this study do not support the first hypothesis (H1), but supports research

by Alim (2007) on the auditor in Public Accountant Firm stating that the

interaction variable competence and ethics compliance auditor can not be

analyzed because it excluded from the model. The results also do not support the

results Cushing (1999), Karismatuti (2012) dan Aprianti (2010) which concluded

that the factors that develop audit quality attributes which one of them is the high

ethical standards, while other attributes associated with competence. These results

indicate that ethics are not able to moderate the influence of competence on the

22

quality of the examination results. This fact can be justified by the claim that

ethics is derived from the word ethos which means character, is an individual

moral behavior that grows from within oneself (Robbins, 2008). Examiner ethical

behavior is the character that is carried by each individual examiner and not

obtained from the results of formal and informal education, so that in conducting

the examination will ignore its competence. That is, the character of ethical

behavior examiner will be able to determine the quality of examination results by

ignoring the competency of examiners despite having a high level of competence.

Second Hypothesis of Result Test (H2)

Moderasi2 regression results are shown significant level of 0.048 <0.05, it

indicates that the interaction variable examiners ethics and work experience have

a significant effect on the quality of examination results and supports the second

hypothesis (H2). The results also support research by Samsi (2013) using ethics as

a moderating influence on work experience in quality audit and concluded that the

auditors who have longer work experience tend to have a more ethical behavior

than auditors who have a short work experience. This fact shows that work

experience will be influenced by the ethics examiners. if the examiners has a high

experience will be able to improve the quality of examination results if it is

supported by positive ethical behavior, or otherwise if it is supported by the

negative behavior, then the quality of the examination results will be decreased.

This means that the examiners ethical behavior can strengthen or weaken the

effect of work experience on the quality of the examination results. Based on the

results of negative coefficient at -0.883 indicates that ethical behavior affects the

23

quality of work experience in the examination results are negative ethical behavior

in the opposite direction to the standard moral principles that apply in the

collective agreement that will tend to decrease the quality of the examination

results. Thus, work experience can deepen and broaden the knowledge of the

inspection object so that the examiners tend to have behavior that is unethical in

the execution of their duties to the extent that no an award given on examination

results are achieved.

Third Hypothesis of Result Test (H3)

Regression results moderasi3 known significant level of 0.074> 0.05, it

indicates that the interaction variable examiner ethics and independence has no

significant effect on the quality of the examination results. The results of this

study do not support the third hypothesis (H3) and the results of research

conducted by Aprianti (2010), Alim (2007), Kharismatuti (2012), and Deis (1992)

which says that the ability of the auditor to be able to survive under the pressure

of their clients depending on the economic agreements, certain environments and

behaviors including professional ethics. This result can be justified that the ethics

and independence can not be used when the intervention of a supervisor on the

results of the examination, where the results of the investigation may affect the

position of boss or related to the local authorities in terms of politics. Intervention

boss on the results of the examination may be either an agreement or negotiation

with the object of inspection findings, so that officials can not use ethical

examiner associated with independence in carrying out checks. This leads to

24

ethics is not able to moderate the effect of independence on the quality of the

examination results.

CONCLUSION

Based on the results and the discussion above, it can be concluded, as

follows:

1) Ethics examiner is not able to moderate the influence of competence on the

quality of the examination results. This is because ethics examiner is an

individual character that directly will be able to determine the quality of

examination results and tend to ignore its competence.

2) Ethics examiner is able to moderate the effect of work experience on the

quality of the examination results. Examiners who have longer work

experience tend to have a more ethical behavior or otherwise unethical

behavior that can determine the quality of examination results.

3) Ethics examiner is not able to moderate the effect of independence on the

quality of the examination results. It can be caused due to the level of

independence of the inspectors is still influenced by the intervention of

superiors, wherein the apparatus examiner responsible for their direct

supervisor.

25

References

Affandi, Mohammad Bakri. (2013). “Pengaruh Kompetensi, Independensi,

Akuntabilitas, dan Etika Profesi Auditor terhadap Kualitas Audit

(Studi pada Auditor Kantor Akuntan Publik di Malang)”. Malang:

Universitas Negeri Malang

Aini, Nur. (2009). “Pengaruh Independensi Auditor, Pengalaman Auditor dan

Etika Auditor Terhadap Kualitas Audit”. Jakarta: Universitas Islam

Negeri Syarif Hidayatullah

Alim, M. Nizarul., Trisni Hapsari dan Liliek Purwanti. (2007). “Pengaruh

Kompetensi dan Independensi Terhadap Kualitas Audit Dengan Etika

Auditor Sebagai Variabel Moderasi”. Simposium Nasional Akuntansi

X, Unhas Makasar, 26-28 Juli 2007

Angelo, Linda Elizabeth De. 1981. Auditor Size And Audit Quality. University of

Pennsylvania, Philadelphia, PA 19104, USA (Received May 1981,

final version received July 1981). Journal of Accounting and

Economics 3 (1981) 183-199. North-Holland Publishing Company

26

Aprianti, Deva. (2010). “Pengaruh Kompetensi, Tekanan Waktu, Pengalaman

Kerja, Etika Dan Independensi Auditor Terhadap Kualitas Audit”.

Jakarta: Universitas Islam Negeri Syarif Hidayatullah

Arens, Alvin A & James K. Loebecke. (2008). Auditing an Integrated Approach.

Prenticehall: New Jersey

Arisanti, Dea., Dwi Fitri Puspa dan Herawati. (2012). “Pengaruh Independensi,

Pengalaman Kerja, Due Profesional Care, Akuntabilitas Dan

Kompetensi Terhadap Kualitas Audit” (Tesis). Padang: Universitas

Bung Hatta

Ayuningtyas, Harviya Yulian. (2012). “Pengaruh Pengalaman Kerja,

Independensi, Obyektifitas, Integritas Dan Kompetensi Terhadap

Kualitas Hasil Audit (Studi Kasus Pada Auditor Inspektorat

Kota/Kabupaten Di Jawa Tengah)” (Tesis). Semarang: Universitas

Diponegoro

Bastian, Indra. (2003). Audit Sektor Publik . Jakarta: Visi Global Media

Besley, Timothy J., and Maitreesh Ghatak. (2014). Solving Agency Problems:

Intrinsic Motivation, Incentives, and Productivity. London School of

Economics, January, 2014

27

Blann, Stephen W. (2010). “Auditor Independence in the Public Sector”

Government Finance Review; Aug 2010; 26, 4; ABI/INFORM

Research. pg. 40

Boynton, William C., Raymond N. Johnson, Walter G. Kell (2001). Modern

Auditing, alih bahasa, Paul A. Rajoe, Gina Gania, Lehan Seiyo Busdi;

editor, Yati Sumiharti. Edisi ke-7. Jilid 2. Jakarta : Erlangga

BPKP, Pusdiklatwas. (2009). Edisi ke-6, Dasar-dasar Auditing, Bogor

BPKP RI. (2014). Ikhtisar Hasil Pemeriksaan Semester I Tahun 2014:

Pemeriksaan Laporan Keuangan. Buku II. Jakarta

Cooper, Donal R., dan C. William Emory. (1996). Business Research Methods.

Edisi Kelima. Jakarta: Erlangga

Cushing, B.E. (1999). Economic Analysis of Accountants' Ethical Standards: The

Case of Audit Opinion Shopping. Journal of Accounting and Public

Policy. pg. 339-363

Deis, Jr DR., and GA Giroux. (1992). Determinants of Audit Quality in the Public

Sector. Accounting Review, Vol. 67, No. 3 July 1992, pp. 462-479

28

Douglas, Patricia Casey and Wier, Benson, (2005), Cultural and Ethical Effects in

Budgeting Systems: A Comparison of U.S. and Chinese Managers,

Journal of Business Ethics (2005) 60: 159–174

Efendy, Muh. Taufiq. (2010). “Pengaruh Kompetensi, Independensi, dan Motivasi

Terhadap Kualitas Audit Aparat Inspektorat Dalam Pengawasan

Keuangan Daerah (Studi Empiris pada Pemerintah Kota Gorontalo)”

(Tesis). Semarang: Universitas Diponegoro

Ghozali, I. (2012). Aplikasi Analisis Multivariat dengan Program IBM SPSS 20.

Cetakan VI. Edisi ke-6. Semarang: Badan Penerbit Universitas

Diponegoro

Gordon, L. M., & Graham, S. (2006). Attribution theory. "The encyclopedia of

human development". Thousand Oaks: Sage Publications, 1, pg.142–

144

Halim, Abdul. (2007). Akuntansi Sektor Publik : Akuntansi Keuangan Daerah.

Edisi Ketiga. Jakarta: Salemba Empat

Heider, Fritz.(1958). The Psychology of Interpersonal Relations. The Psychology

Press. p. 2. ISBN 9781134922185.

29

Ionescu, Luminita. (2010). Exploring The Ethics Of Accounting. Contemporary

Readings in Law and Social Justice. Volume 2(1), 2010, pp. 158–163,

ISSN 1948-9137

Indah, Siti Nur Mawar. (2010). “Pengaruh Kompetensi dan Independensi Auditor

Terhadap Kualitas Audit (Studi Empiris Pada Auditor KAP Di

Semarang)”. Semarang: Universitas Diponegoro

Indriantoro, Nur dan Bambang Supomo. (1999). Metodologi Penelitian Bisnis

Untuk Akuntansi & Manajemen. Edisi Pertama, BPFE-

YOGYAKARTA Yogyakarta

Jensen, Michael C., and William Meckling. (1976). “Theory of the Firm:

Managerial Behavior, Agency Costs and Ownership Structure,”

Journal of Financial Economics 3 pg. 305-360

Jogiyanto, Hartono. (2007). Metodologi Penelitian Bisnis, FE-UGM: BPFE

Yogyakarta

30

Kadhafi, Muhammad., Nadirsyah, dan Syukriy Abdullah. (2014). “Pengaruh

Independensi, Etika dan Standar Audit Terhadap Kualitas Audit

Inspektorat Aceh”. Jurnal Akuntansi Pascasarjana Universitas Syiah

Kuala Banda Aceh, Volume 3, No. 1, Februari 2014

Kharismatuti, Norma dan Hadiprajitno, P Basuki. (2012). “Pengaruh Kompetensi

dan Independensi Terhadap Kualitas Audit Dengan Etika Auditor

Sebagai Variabel Moderasi (Studi empiris pada internal auditor BPKP

DKI Jakarta)”. Jurnal Akuntansi Universitas Diponegoro, Volume 1,

Nomor 1, Tahun 2012, Hal 1-10

Kisnawati, Baiq. (2013). “Pengaruh Kompetensi, Independensi, dan Etika Auditor

Terhadap Kualitas Audit (Studi Empiris Pada Auditor Pemerintah di

Inspektorat Kabupaten dan Kota Se-Pulau Lombok)”. Jurnal

Akuntansi Universitas Mataram, Mei 2013

Kohler, Eric E. (1976). “A Dictionary for Accountants”. The Accounting Review,

Vol. 51, No. 4 (Oct., 1976), pp. 949-951

Lauso, Meifa. (2013). "Pengaruh Keahlian, Independensi, dan Etika Terhadap

Kualitas Audit Inspektorat Di Provinsi Gorontalo" (Tesis). Gorontalo:

Universitas Negeri Gorontalo

31

Liana, Eva Fika. (2014). “Pengaruh Pengalaman Kerja, Kompetensi, Independensi

dan Etika Auditor terhadap Kualitas Audit pada Auditor di BPKP

Perwakilan Provinsi Sumatera Utara”. Medan: Universitas Negeri

Medan

Lin, Ling., Tepalagul, Nopmanee. (2014). Auditor Independence and Audit

Quality: A Literature Review. Journal of Accounting, Auditing &

Finance 2015, Vol. 30(1) 101–121. sagepub.com/journals

Permissions. nav DOI: 10.1177/ 0148558 X14544505

jaf.sagepub.com

Lowenshon, S., Johnson E.L. dan Elder J.R. (2005). Auditor Specialization and

Perceived Audit Quality, Auditee Satisfaction, and Audit Fees in the

Local Government Audit Market. ULR: http://www.caal-

inteduorg.com/ ibsm2/proceedings/FP47-Yenni_Carolina

An_Empirical_ Study_of.pdf. diupload tanggal 20 Desember 2014

Luc Leruth and Elisabeth Paul. (2007). “A Principal-Agent Theory Approach to

Public Expenditure Management Systems in Developing Country”.

OECD Journal on Budgeting, Volume 7, No.3

Mahsun, Moh dan Purwanugraha, H.A. (2006). Akuntansi Sektor Publik. Edisi

Pertama. Yogyakarta: BPFE-YOGYAKARTA

32

Mardiasmo. (2009). Akuntansi Sektor Publik. Edisi Pertama. Yogyakarta: Penerbit

ANDI

Martini. (2011). “Analisis Faktor-faktor yang Mempengaruhi Kualitas Audit”

(Tesis). Jakarta: Universitas Budi Luhur

Mulyadi. (2002). Auditing. Edisi ke-6. Jakarta: Salemba Empat

Ningsih, A.A Putu Ratih Cahaya dan P. Dyan Yaniartha. (2013). "Pengaruh

Kompetensi, Independensi, dan Time Budget Pressure Terhadap

Kualitas Audit” (Tesis). Denpasar: Universitas Udayana

Nugraha, Agung Eka Putra. (2012). “Pengaruh Kompetensi, Tekanan Waktu,

Pengalaman Kerja, Etika Dan Independensi Auditor Terhadap

Kualitas Audit “. Yogyakarta: Universitas Negeri Yogyakarta

Pratiwi, Komang Asri. (2013). "Pengaruh Independensi dan Kompetensi Auditor

Pada Kualitas Audit Dengan Due Professional Care Sebagai Variabel

Intervening di Kantor Akuntan Publik (KAP) Se-Provinsi Bali"

(Tesis). Denpasar: Universitas Udayana

33

Rai, I Gusti Agung. (2008). Audit Kinerja Pada Sektor Publik. Jakarta: Salemba

Empat

Robbins, Stephen P and Judge, Timothy A,. (2008). Organizational Behavior

(Prilaku Organisasi). Penerjemah: Diana Angelia, Ria Cahyani &

Abdul Rosyid. Buku 1 edisi 12. Jakarta: Salemba Empat

Satava, David., Cam Caldwell, and Linda Richards. (2006). Ethics and the

Auditing Culture:Rethinking the Foundation of Accounting and

Auditing, Journal of Business Ethics, 64: 271–284

Sembiring, Andi Yahya dan Rustiana. (2012). "Pengaruh Pengalaman dan

Akuntabilitas Terhadap Kualitas Audit Internal Inspektorat Daerah

Istimewa Yogyakarta" (Tesis). Yogyakarta: Universitas Atma Jaya

Septriani, Yossi. (2011). "Pengaruh Independensi dan Kompetensi Auditor

Terhadap Kualitas Audit (Studi Kasus Auditor KAP Di Sumatera

Barat)" (Tesis). Padang: Universitas Negeri Padang

34

Singgih, Elisha Muliani., dan Icuk Rangga Bawono. (2010). “Pengaruh

Independensi, Pengalaman, Due Professional Care dan Akuntabilitas

Terhadap Kualitas Audit (Studi pada Auditor di KAP “Big Four” di

Indonesia)”. Dalam: Simposium Nasional Akuntansi XIII Purwokerto

2010

Slamet, Immanuel Setiawan. (2012). “Pengaruh Pengalaman Kerja, Independensi,

Dan Kompetensi Auditor Terhadap Kualitas Audit Oleh Akuntan

Publik Di Surabaya”. Jurnal Universitas Katolik Widya Mandala

Surabaya, Vol 1, No 1 (2012), Hal 102-106

Sterck, Miekatrien and Bouckaert, Geert. (2006). International Audit Trends In

The Public Sector The Internal Auditor; Aug 2006; 63, 4;

ABI/INFORM Research pg. 49

Subhan. (2012). “Pengaruh Latar Belakang Pendidikan, Kompetensi Tehnis,

Pendidikan Dan Pelatihan Berkelanjutan dan Pengalaman Kerja

Terhadap Kualitas Hasil Pemeriksaan”. Madura: Universitas Madura.

http://fe.unira.ac.id/wp-content/uploads/2012/11/Makalah-I.pdf

Sugiyono. (2013). Metode Penelitian Bisnis (Pendekatan Kuantitataif, Kualitatif

dan R&D). Cetakan ke-14, Bandung : Alfabeta

35

Sukriah, Ika. dkk. (2009) “Pengaruh Pengalaman Kerja, Independensi,

Obyektifitas, Integritas dan Kompetensi Terhadap Kualitas Hasil

Pemeriksaan” URL:

http://jurnals.files.wordpress.com/2011/06/aspsia13.pdf. diupload

tanggal 20 Desember 2014

Tjun, Lauw., Elyzabet Indrawati Marpaung dan Santy Setiawan. (2012).

Pengaruh Kompetensi dan Independensi Auditor Terhadap Kualitas

Audit. Jurnal Akuntansi Vol.4 No.1 Mei 2012: 33-56 33

Tomescu, Madalina. (2013). Ethics And Conflicts Of Interest In The Public

Sector. Contemporary Readings in Law and Social Justice Volume

5(2), 2013, pp. 201–206, ISSN 1948-9137

Tubbs, R.M. (1992). The Effect of Experience on The Auditor’s Organization and

Amount of Knowledge. The Accounting Review. Vol.67 No.4 Oktober

1992. p. 783-801.

Turner, Mark and Hulme, David, (1997). Governance, Administration, and

Development: Making the State Wor., London: MacMillan Press Ltd

Wahana, Paulus. (2008). Nilai Etika Aksiologi Max Scheler. Cetakan ke-5,

Yogyakarta: Kanisius

36

Yusri, A. (2013). “Pengaruh Faktor Kompetensi, Independensi Dan Sikap

Profesional Auditor Terhadap Kualitas Audit Dalam Meningkatkan

Kinerja Inspektorat (Studi empiris pada Inspektorat Provinsi Sulawesi

Selatan)”(Tesis). Makasar: Universitas Hasanudin