Professional Ethics and Auditing Quality of the Cooperative Auditors

Abstract

The purpose of this study was to examine effect of compliance with professional ethics and auditing quality of the cooperative auditors. The professional ethics was an independent variable that included (1) transparency independent fairness and honesty (2) professional competence (3) keeping confidentialness (4) responsibility for whom the cooperative auditors worked and (5) professional behavior. And auditing quality was an dependent variable consisting of (1) accuracy (2) objectiveness (3) clearness (4) conciseness (5) creation (6) completion and (7) timelines. Questionnaires were used as a tool for collecting data. They were mailed to 255 cooperatives in cooperative auditing office region 5 from March - April 2017. The questionnaires received were 121 or response rate of 47.45 %. Descriptive statistic, multiple correlation analysis and multiple regression analysis were used for data analysis The result of this research showed components of professional ethics, professional behavior and responsibility for which the cooperative auditors worked; keeping confidentialness and professional competence has a positive effect significant on audit quality of the cooperative auditors.The results will be useful in developing the auditor’s potential, make the audit work efficient and effective. It will also builds confidence in customers or recipients, as well as user groups from the financial statements.