The antecedents of audit quality: The input-process-output factors

Abstract

This paper is intended to explore the manifestation of attributes in reflecting audit quality as set by International Auditing and Assurance Standard Board (IAASB). This research focuses on the attributes of Input-Process-Output factors for engagement (auditor) and firm (public accounting firm) level. The input factors considered are: values, ethics, and attitude, knowledge, skill and experience. The process factors considered are: audit process, and quality assurance. The output factor considered is the audit report. The data gathered from 250 senior auditors who work in 100 public accounting firms in Indonesia. The data analysis and hypotheses testing were processed using Second Order Confirmatory Factor Analysis - Structural Equation Model (SEM) - SmartPLS 3.0. The results of the study confirmed that input, process, and output factors manifest the audit quality. All attributes of values, ethics and attitude for engagement and firm level, positively manifest the audit quality. All attributes of knowledge, experience and time, for engagement and firm level, positively manifest the audit quality. All attributes of audit process and quality assurance, for engagement and form level, positively manifest the audit quality. All attributes of output (audit report), for engagement and firm level, positively manifest the audit quality.