Analysis of potential factors influencing audit quality: The moderating effect of time budget pressure

Abstract

In a pandemic situation the audit sector, either government or public, is affected in terms of audit implementation, especially in carrying out field audits. However, auditors can tackle this issue by applying new methods. Therefore, the purpose of this study is to examine the effect of auditor skepticism, auditor competence, understanding of information systems, and auditor motivation on audit quality. It also assesses whether time budget pressure has a moderating effect on the relationship between auditor competence, auditor motivation, and audit quality. 58 questionnaires were issued to government internal auditors in the Principal Inspectorate of Indonesia’s Supreme Audit Institution in the AKN V and VI units, and the data were acquired using a Google Form. SmartPLS software version 3.0 was used to analyze data applying Structural Equation Modelling (SEM). Purposive sampling was used in this investigation, which took a quantitative approach. The paper uses the theory of planned behavior and the inverted U theory. The results conclude that auditor skepticism, auditor competence, and understanding of information systems have a significant positive effect on audit quality. Auditor motivation has no significant positive effect on audit quality. Furthermore, time budget pressure does not moderate the effect of auditor competence and auditor motivation on audit quality. This study is expected to provide valuable input to improve the audit quality and assist auditors in the AKN V and VI units uphold professionalism and integrity in carrying out audit examinations even under the condition of a pandemic.