The Relationship Between Audit Quality Control and Audit Quality of Cooperatives: Case Study of Cooperative Public Auditors and Cooperative Private Auditors

Abstract

The objective of this research is to study the relationship between the quality control of cooperative auditing and the quality of cooperative auditing work by cooperative auditors. Secondary information was collected from the study of concepts, theories, and research related to audit quality, cooperative auditing quality, auditing, audit planning, examination and preparation of audit evidence, auditing quality control standards, and quality control of cooperative auditing. Primary data were collected using questionnaires that were tested for reliability and content validity. The structural validity test was performed on the non-sample test group by factor analysis and reliability was tested by finding the alpha coefficient according to the Cronbach method. Data were collected from cooperative auditors across the country, specifically a total of 504 government cooperative auditors (Civil servants under the Department of Cooperative Auditing), and 169 private cooperative auditors (Certified auditors or other persons as specified by the Cooperative Auditing Department). The inferential statistics used to test the research hypothesis is multiple regression analysis.

Results of the study found that the correlation between quality control of cooperative auditing with the ethical requirements of the auditors, job acceptance and customer retention, assignment of audit work and development of professional knowledge, auditing performance, and audit work tracking. However, no relationship was found between cooperative auditing quality and the responsibility for governance and quality within the auditing field. Results found that both types of cooperative auditors believed that cooperative auditing quality control affects cooperative auditing quality in terms of responsibilities for quality supervision within the audit department, job acceptance and customer retention, and audit work tracking are different. However, it was found that while the cooperatives believed that the quality control of cooperative auditing affects the quality of cooperatives auditing in terms of auditing performance, assignment of audit work and the development of professional knowledge, controlling the quality of cooperative auditing was not believed to affect the quality of cooperative auditing. In addition, no difference was found among the ethical requirement of the auditors.