Open AccessThe Effect of Auditor Quality on the Follow-Up of Audit Recommendation
Author(s) -
Dyah Setyaningrum,
Lindawati Gani,
Dwi Martani,
Cris Kuntadi
Publication year - 2013
Publication title -
international research journal of business studies
Language(s) - English
Resource type - Journals
eISSN - 2338-4565
pISSN - 2089-6271
DOI - 10.21632/irjbs.6.2.89-104
Subject(s) - audit , accounting , quality audit , business , audit substantive test , auditor independence , joint audit , auditor's report , quality (philosophy) , audit evidence , external auditor , chief audit executive , sample (material) , inherent risk (accounting) , government (linguistics) , internal audit , chromatography , linguistics , philosophy , epistemology , chemistry
In several literature of auditing, audit quality is defined as the probability of discovering the breach and to report it to the users of financial statements (De Angelo, 1981). In this original definition, auditor’s competency is considered fixed and do not vary with each audit engagement. According to Watkins et al., (2004), audit quality component consists of auditor monitoring strength and auditor reputation. Audit monitoring strength represents auditor’s ability to provide information that minimizes the difference between a client’s reported economic circumstances and the “true” unobservable, economic circumstances of the client. The greater auditor monitoring strength the more closely financial report will reflect the true economic circumstances of the client and the higher information quality. Auditor reputations affect the credibility of the information or perception of the reliability of information. Auditor Vol. 6 | No. 2 ISSN: 2089-6271 The Effect of Auditor Quality on the Follow-Up of Audit Recommendation
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