The Effect of Competence and Independence Of Auditors on the Auditquality

Abstract

This study aims to determine the effect of the competence and independence of auditors. This research is motivated by a large public accounting firm (KAP) were suspended in this case because of poor competence and independence of the auditors that affect audit quality that occurs on Public Accountants.

Competence and independence of auditors that will either result in a good quality audit. Probability auditors foundmateriality misstatement depends on the quality of the auditor's understanding (competence) while reporting misstatements depends on auditor independence. Audit quality is aprobability that the auditor will discover and report irregularities in the client's accounting system.

The unit of analysis in this study is  a Public Accounting Firm (KAP) in Yogyakarta. The population in this study were all auditors working inKAP. Sampling was done by using purposive sampling method, and the total sample of 50 respondents. The primary data collection method used was a questionnaire method. The data analysis technique used in this study is the technique of multiple line arregression analysis.

Results of research conducted showed that the competence and independence of the significant effect of 35.9% on audit quality.

Keywords: Competence, Independence, audit quality