Article Sidebar

Download
Download Article

Main Article Content

Abstract

High-quality audits are increasingly needed to support transparency and accountability in government financial governance, including in Timor-Leste, a developing country. This study examines the influence of professional ethics and professional skepticism on auditor quality and investigates the moderating role of professional skepticism. The population consists of all government internal auditors at the Inspeção Geral do Estado (IGE), and a saturated sampling technique was employed, using the entire population as the sample. A quantitative method was adopted, with data evaluated using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The findings are professional ethics can enhance auditor quality, professional skepticism also enhance auditor quality, demonstrating that a critical and questioning perspective improves the trustworthiness of audit outputs. Furthermore, professional skepticism enhance the effect of professional ethics on auditor quality. These findings provide theoretical implications by supporting agency theory, where auditors play a essential role in reducing information asymmetry between principals and agents, and attribution theory, where auditors’ skeptical judgment reflects cognitive processes in evaluating and attributing the credibility of audit evidence. Overall, the integration of professional ethics and professional skepticism is essential to improvi the quality of government internal auditors, thereby supporting more transparent and accountable public financial governance in Timor-Leste.

Keywords

Professional Skepticsm Professional Ethics Auditor Quality Good Governance.

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Fakhriyyah, D. D., Mawardi, M. C., & Santos, L. T. D. (2026). Strengthening Audit Quality through Ethics and Skepticism: Evidence from Internal Auditors in Timor-Leste. Golden Ratio of Auditing Research, 6(2), 750–760. https://doi.org/10.52970/grar.v6i2.2197
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Adhikara, M. F. A., & Widodo, A. M. (2023). Public accountant professional skepticism behavior in improving audit quality: A path analysis. JEMA: Jurnal Ilmiah Bidang Akuntansi Dan Manajemen, 20(2), 264–282. https://riset.unisma.ac.id/index.php/jema/article/view/20616/16151
  2. Andaningsih, I. R. (2025). The Effect of Internal Auditing on Fraud Prevention in State-Owned Enterprises. West Science Accounting and Finance, 3(03), 437–446. https://doi.org/10.58812/WSAF.V3I03.2412
  3. Arif, E. M., Mulya, A., & Kurniati, A. (2024). The Effect Of Independence And Professional Ethics On Auditor Integrity And The Implications For Audit Quality At East Jakarta Public Accounting Firms. Ekombis Review: Jurnal Ilmiah Ekonomi Dan BIsnis, 12(3), 3047–3062.
  4. Astuti, W. A., Surtikanti, & Eneida. (2023). Auditor Quality Analysis Of Audit Findings In timor-Leste. Journal Of Eastern European And Central Asian Research, 10(4), 691–700. https://doi.org/http://dx.doi.org/10.15549/jeecar.v10i4.1377
  5. Azhar, N. N., Nazri, S. N. F. S. M., Zolkaflil, S., & Kusumaningsih, A. (2025). A Quantitative Approach of Professional Skepticism and Fraud Detection among Malaysian Internal Auditors. International Journal of Research and Scientific Innovation, 12(8), 1195–1214. https://doi.org/10.51244/ijrsi.2025.120800107
  6. Chen, Y.-H. ;, Wang, K.-J. ;, Liu, S.-H., Curado, M., Lopes Henriques, P., Jerónimo, H. M., Chen, Y.-H., Wang, K.-J., & Liu, S.-H. (2023). How Personality Traits and Professional Skepticism Affect Auditor Quality? A Quantitative Model. Sustainability 2023, Vol. 15, Page 1547, 15(2), 1547. https://doi.org/10.3390/SU15021547
  7. Correia, C. C., Ratnawati, T., & Riyadi, S. (2024). Factors Influencing Red Flags and Leadership Behavior that Impact Internal Audit Quality at Inspeção Do Estado (IGE) Timor Leste. International Scientific Journal of Unpaz Timor Leste, 01(01), 7–14. http://www.sciencedirect.com/science/article/pii/S074964190800065X
  8. Cui, J., Eutsler, J., Kipp, P. C., & Robertson, J. C. (2025). The Effects of an Audit Partner’s Communication Medium and Use of Worked Examples on Auditors’ Skeptical Judgments and Actions. Journal of Information Systems, 39(3), 1–21. https://doi.org/10.2308/ISYS-2023-028
  9. DeAngelo, L. E. (1981). Auditor independence, ‘low balling’, and disclosure regulation. Journal of Accounting and Economics, 3(2), 113–127. https://doi.org/10.1016/0165-4101(81)90009-4
  10. Diana, N., Maslichah, Adhikara, M. F. A., & Fakhriyyah, D. D. (2025). How Time Budget Pressure , Competence , and Independence Affect Audit Quality Through Professional Skepticism ? Amkop Management Accounting Review (AMAR), 5(2), 1417–1430. https://doi.org/10.37531/amar.v5i2.3512
  11. Farida. (2021). The Effect of Auditor Ethics , Auditor Experience and Independence on Audit Quality Through Professional Skepticism. Atestasi: Jurnal Ilmiah Akuntansi, 4(2), 446–463. https://doi.org/DOI : https://doi.org/10.57178/atestasi.v4i2.717
  12. Hair, J. F., Hult, G. T., Ringle, C. M., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling. In Long Range Planning (Vol. 46, Issues 1–2). https://doi.org/10.1016/j.lrp.2013.01.002
  13. Hurtt, R. K. (2010). Development of a scale to measure professional skepticism. Auditing, 29(1), 149–171. https://doi.org/10.2308/aud.2010.29.1.149
  14. Hurtt, R. K., Brown-Liburd, H., Earley, C. E., & Krishnamoorthy, G. (2013). Research on auditor professional skepticism: Literature synthesis and opportunities for future research. Auditing, 32(SUPPL.1), 45–97. https://doi.org/10.2308/ajpt-50361
  15. Husnianto, Pituringsih, E., & Animah. (2017). INFLUENCES OF THE AUDITOR ’ S PROFESSIONAL SKEPTICISM, COMPETENCE, AND ETHICAL JUDGMENT. International Conference and Call for Papers, 1391–1410.
  16. Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Cgency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
  17. Jesus, H. D. C. De, Indarti, Goretti, M. K., & Jacobus, W. (2026). The Influence of Internal Audit Independence and Professionalism on Audit Quality at Inspeção Geral Do Estado (IGE), Dili, Timor-Leste. Journal of Economic, Finance and Management Studies, 9(3), 1340–1347. https://doi.org/10.47191/jefms/v9
  18. Julianti, P. D., & Muhyarsyah. (2023). THE EFFECT OF AUDITOR ETHICS AND AUDITOR PROFESSIONAL SKEPTICISM ON AUDIT QUALITY WITH REMOTE. Journal of Social Research, 2(10), 3727–3741.
  19. Kartikasari, M. D. (2025). Corruption Eroding Timor Leste: Between Hopes and Challenges - SEA ACTIONS. Https://Www.Seaanticorruption.Org/2025/03/21/Corruption-Eroding-Timor-Leste/. https://www.seaanticorruption.org/2025/03/21/corruption-eroding-timor-leste/
  20. Kusumawati, A., & Syamsuddin. (2018). The Effect of Auditor Quality to Professional Skepticsm and its Relationship to Audit Quality. International Journal of Law and Management, 60(4), 998–1008.
  21. Lannai, D., Hajering, & Ahmad, H. (2025). Audit Quality Model Moderated by Professional Skepticism: Determinants of Professional Ethics and Auditor Experience. Theoretical and Practical Research in Economic Fields, XVI(1), 221–235.
  22. Nelson, M. W. (2009). A Model and Literature Review of Professional Skepticism in Auditing. AUDITING: A Journal of Practice & Theory, 28(2), 1–34. https://doi.org/10.2308/aud.2009.28.2.1
  23. Soenjaya, H., & Sofian. (2024). Pengaruh Independensi, Skeptisme, dan Kompetensi Auditor Terhadap Kualitas Audit dengan Etika Auditor sebagai Variabel Moderasi. Indonesian Journal of Auditing & Accounting, 1(2), 89–108.
  24. Surya, F., Pramudita, A., Wijaya, D., Permadi, D., & Putra, E. (2021). Professional Ethics of Auditors and Its Impact on Audit Quality. Golden Ratio of Auditing Research, 1(2), 99–107. https://goldenratio.id/index.php/grar/article/view/368/262
  25. Tjan, J. S., Muslim, M., Alimin, A., & Noch, M. Y. (2024). Independence , Professional Skepticism , And Audit Quality : The Moderating Role Of Audit Fees. Jurnal Akuntansi, 28(01), 40–60. https://doi.org/http://dx.doi.org/10.24912/ja.v28i1.1698
  26. Usman, Fitrijanti, T., Soemantri, R., & Koeswayo, P. S. (2023). Internal auditor independence and audit quality: the influence of mediation role of professional ethics investigation (on the example of Gorontalo city inspectorate in Indonesia). Economic Annals-XXI, 206(11–12), 24–29. https://doi.org/10.21003/ea.V206-04
  27. Utama, F. R., & Rohman, F. (2023). Pendekatan Teori Atribusi Pada Analisis Determinan Kualitas Audit. Jurnal Akuntansi Indonesia, 12(1), 43–55. https://doi.org/http://dx.doi.org/ 10.30659/ jai.12.1.43 - 55
  28. Ximenes, E., & Guntur, Y. S. (2023). The Influence of the Auditor’s Independence, Competence, Integrity, Ethics on the Quality of the Audit with Work Experience as a Variable Moderation in the General Inspection Office of the Timor-Leste State. JMM17 : Jurnal Ilmu Ekonomi Dan Manajemen, 10(1), 44–52. https://doi.org/10.30996/jmm17.v10i1.8496
  29. Zainudin, A. D., Aswar, K., Lastiningsih, N., Sumardjo, M., & Taufik, T. (2021). Analysis of potential factors influencing audit quality: The moderating effect of time budget pressure. Problems and Perspectives in Management, 19(4), 519–529. https://doi.org/10.21511/ppm.19(4).2021.42