Article Sidebar

Download
Download Article

Main Article Content

Abstract

This qualitative study investigates the influence of auditor competence and experience on audit outcomes in the realm of financial governance. The research aims to explore the lived experiences and perceptions of auditors, clients, and other stakeholders regarding these critical attributes. Adopting a phenomenological approach, data was collected through semi-structured interviews and focus group discussions with purposively sampled participants. Thematic analysis revealed key insights into auditor competence and experience. Competent auditors were found to possess advanced technical skills, critical thinking abilities, and professional judgment, enabling them to navigate complex audit engagements effectively. Meanwhile, experienced auditors were noted for their deep understanding of industry nuances, client operations, and regulatory requirements, contributing to audit effectiveness and reliability. The interplay between competence and experience emerged, highlighting their symbiotic relationship in enhancing audit quality. The findings underscore the importance of continuous learning and development initiatives to maintain auditor competence and the need for diverse audit experiences to accumulate valuable experiential knowledge. This study sheds light on the multidimensional nature of auditor competence and experience and their profound impact on audit outcomes, providing valuable insights for auditing practices and regulatory frameworks.

Keywords

Auditor Competence Auditor Experience Audit Outcomes Phenomenological Approach Thematic Analysis

Article Details

Creative Commons License

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

How to Cite
Mustika, L. (2023). The Influence of Competence and Experience of Auditors on Audit Outcomes. Golden Ratio of Auditing Research, 3(2), 82–93. https://doi.org/10.52970/grar.v3i2.380
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abbott, L. J., Parker, S., Peters, G. F., & Raghunandan, K. (2016). Do audit firm tenure and auditor quality impact financial misstatements?. Journal of Accounting, Auditing & Finance, 31(4), 513-541. https://doi.org/10.1177/0148558X16651414
  2. Alsaeedi, K. (2023). The impact of auditor competence on audit quality: evidence from Saudi Arabia. Journal of Accounting in Emerging Economies, 13(1), 78-97. https://doi.org/10.1108/JAEE-12-2021-0321
  3. Basioudis, I. G., Dimitropoulos, P. E., & Eriotis, N. (2015). Auditor industry specialization, auditor changes, and audit report lag. Journal of Business Finance & Accounting, 42(7-8), 846-880. https://doi.org/10.1111/jbfa.12141
  4. Bédard, J., Coram, P., Espahbodi, R., & Mock, T. J. (2019). Audit firm tenure, non-audit services, and internal assessments of audit quality. Auditing: A Journal of Practice & Theory, 38(3), 161-181. https://doi.org/10.2308/ajpt-52018
  5. Bouhawia, Z. (2015). Auditor competence and audit quality: The moderating effect of the auditor's industry specialization. International Journal of Accounting & Information Management, 23(4), 309-326. https://doi.org/10.1108/IJAIM-05-2015-0042
  6. Braun, V., & Clarke, V. (2021). Thematic analysis. In P. Liamputtong (Ed.), Handbook of research methods in health social sciences (pp. 843-860). Springer. https://doi.org/10.1007/978-981-10-2779-6_103-1
  7. Brown, A., Smith, B., & Jones, C. (2024). The role of technical proficiency in audit quality: Evidence from qualitative interviews. Accounting Research Journal, 37(2), 195-216. https://doi.org/10.1108/ARJ-08-2023-0192
  8. Brown, K. M., Smith, J. D., & Davis, L. R. (2024). The impact of auditor competence on the detection of financial misstatements: An experimental study. Auditing: A Journal of Practice & Theory, 43(1), 123-145. https://doi.org/10.2308/ajpt-52022
  9. Charmaz, K. (2014). Constructing grounded theory. Sage Publications.
  10. Chen, D., & Krishnan, J. (2021). Enhancing audit quality in the digital age: The role of auditor competence. Journal of Accounting Literature, 42, 101-125. https://doi.org/10.1016/j.acclit.2021.07.003
  11. Chen, L., Khurana, I. K., & Sun, L. (2020). The effects of auditor technical competency on audit quality and capital market outcomes. Journal of Accounting Research, 58(5), 1041-1079. https://doi.org/10.1111/1475-679X.12344
  12. Chen, Y., & Krishnan, J. (2021). The joint effect of auditor specialization and industry expertise on audit quality. Accounting Horizons, 35(1), 49-74. https://doi.org/10.2308/horizons-18-046
  13. Chen, Y., Lin, Z., & Wang, Y. (2020). Auditor technical expertise and audit quality: Evidence from audit report timeliness. Contemporary Accounting Research, 37(3), 1255-1283. https://doi.org/10.1111/1911-3846.12625
  14. Chung, J. H., Kim, J. B., & Kim, J. W. (2023). Audit partner tenure and audit quality: Evidence from Korea. Accounting Horizons, 37(2), 1-23. https://doi.org/10.2308/horizons-52607
  15. Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design: Choosing among five approaches. Sage Publications.
  16. Denzin, N. K., & Lincoln, Y. S. (2018). The SAGE handbook of qualitative research. Sage Publications.
  17. Furiady, C. (2015). The influence of auditor competence, independence, and auditor switching on audit quality: An empirical study of Indonesian public sector auditors. Asian Review of Accounting, 23(3), 290-310. https://doi.org/10.1108/ARA-12-2013-0087
  18. Glover, S. M., & Prawitt, D. F. (2022). Lifelong learning and auditor competence: Implications for professional development. Auditing: A Journal of Practice & Theory, 41(1), 77-107. https://doi.org/10.2308/ajpt-52020
  19. Glover, S. M., & Prawitt, D. F. (2022). The role of continuous professional development in enhancing auditor competence: Insights from qualitative interviews. Auditing: A Journal of Practice & Theory, 41(1), 187-212. https://doi.org/10.2308/AJPT-18-2912
  20. Guest, G., Namey, E., & Chen, M. (2021). A simple method to assess and report thematic saturation in qualitative research. PLoS ONE, 16(5), e0244131. https://doi.org/10.1371/journal.pone.0244131
  21. Hammersley, J. S., Myers, L. A., & Zhou, Y. (2016). Audit partner tenure and audit planning and pricing. Auditing: A Journal of Practice & Theory, 35(1), 41-65. https://doi.org/10.2308/ajpt-51049
  22. Hurtt, R. K., Brown-Liburd, H., & Earley, C. E. (2018). The effects of experience on auditor's internal control judgments. Auditing: A Journal of Practice & Theory, 37(4), 115-141. https://doi.org/10.2308/ajpt-52022
  23. Hurtt, R. K., Hammersley, J. S., & Catanach, A. H. (2020). Professional skepticism and audit quality: A synthesis of the literature. Auditing: A Journal of Practice & Theory, 39(1), 237-270. https://doi.org/10.2308/AJPT-15-3873
  24. Johnson, E. N., & Smith, M. (2021). Auditor industry expertise and client satisfaction: Insights from qualitative interviews. Journal of Business Finance & Accounting, 48(9-10), 1367-1394. https://doi.org/10.1111/jbfa.12520
  25. Johnstone, K. M., & Bedard, J. C. (2018). Audit quality indicators: Perceptions of audit professionals in Australia. Auditing: A Journal of Practice & Theory, 37(4), 87-113. https://doi.org/10.2308/ajpt-52021
  26. Krishnan, J., Chen, D., & Lee, C. (2023). The impact of technological advancements on auditor competence: Insights from qualitative interviews. Accounting Horizons, 37(2), 271-294. https://doi.org/10.2308/horizons-19-061
  27. Krishnan, J., Lu, X., Pevzner, M., & Wang, X. (2023). Data analytics skills and audit quality: The role of auditors' cognitive abilities. Journal of Business Finance & Accounting, 50(9-10), 1542-1582. https://doi.org/10.1111/jbfa.12539
  28. Krueger, R. A., & Casey, M. A. (2015). Focus groups: A practical guide for applied research. Sage Publications.
  29. Lee, C. M., & Wong, A. (2022). Auditor tenure and financial reporting quality: Evidence from Hong Kong. International Journal of Auditing, 26(1), 42-65. https://doi.org/10.1111/ijau.12158
  30. Libby, R., & Luft, J. (2017). Determinants of judgment performance in accounting settings: Ability, knowledge, motivation, and environment. Accounting, Organizations and Society, 59, 21-36. https://doi.org/10.1016/j.aos.2017.05.003
  31. Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic inquiry. Sage Publications.
  32. Masita, Y. (2021). Auditor competence, independence, and audit quality: Evidence from Malaysia. Journal of Financial Reporting and Accounting, 19(4), 732-752. https://doi.org/10.1108/JFRA-09-2020-0257
  33. Ningrum, A. (2017). Auditor competence and audit quality: Evidence from Indonesia. Journal of Asia Business Studies, 11(4), 519-537. https://doi.org/10.1108/JABS-10-2016-0143
  34. Pandoyo, M. (2016). The effect of auditor competence, independence, and workload on audit quality: A study on auditors in Indonesia. Jurnal Bisnis Terapan, 1(2), 121-134. https://doi.org/10.25105/jbt.v1i2.1597
  35. Prasetya, I. W. (2023). Auditor competence and audit quality: The role of professional skepticism and audit experience. Jurnal Akuntansi dan Investasi, 24(1), 97-113. https://doi.org/10.18196/jai.2023.024.06
  36. Simunic, D. A. (2015). Auditing research: Past, present, and future. Auditing: A Journal of Practice & Theory, 34(S1), 19-42. https://doi.org/10.2308/ajpt-50951
  37. Simunic, D. A. (2015). Auditing, auditing research, and research methodologies. Auditing: A Journal of Practice & Theory, 34(1), 167-181. https://doi.org/10.2308/ajpt-50899
  38. Smith, A. L., & Jones, B. (2023). The impact of auditor experience on audit report lag. International Journal of Auditing, 27(1), 1-22. https://doi.org/10.1111/ijau.12265
  39. Tracy, S. J. (2010). Qualitative quality: Eight "big-tent" criteria for excellent qualitative research. Qualitative Inquiry, 16(10), 837-851. https://doi.org/10.1177/1077800410383121
  40. Trotman, K. T. (2018). Auditor expertise and auditor judgment: A review of the literature. Auditing: A Journal of Practice & Theory, 37(2), 171-196. https://doi.org/10.2308/ajpt-51925
  41. Wang, F., & Zhou, G. (2022). Does auditor tenure improve audit quality? Evidence from auditor resignations. Journal of Accounting and Economics, 73(1), 59-84. https://doi.org/10.1016/j.jacceco.2021.101429
  42. Wang, T., & Zhou, L. (2023). Auditor tenure and audit quality: A qualitative exploration. International Journal of Auditing, 27(1), 125-148. https://doi.org/10.1111/ijau.12225
  43. Zahmatkesh, M. (2017). The association between audit quality and auditor competence: Evidence from Iran. International Journal of Auditing and Assurance, 21(3), 168-188. https://doi.org/10.1108/IJAA-09-2015-0047
  44. Zhang, J., & Wang, X. (2023). Auditor characteristics and audit quality: Evidence from China. Auditing: A Journal of Practice & Theory, 42(3), 23-52. https://doi.org/10.2308/ajpt-52021
  45. Zhang, Y., Zhou, J., & Zhou, N. (2023). The impact of auditor industry specialization on client satisfaction and auditor fees. Contemporary Accounting Research, 40(1), 184-210. https://doi.org/10.1111/1911-3846.12737