Professional Skepticism, Political Pressure and Audit Quality in the Government Sectors, Indonesia

Abstract

This research analyzes the role of political pressure in moderating audit quality in the government sector. Referring to Hurtt (2010), this research examines the influence of interpersonal understanding, questioning mind, search for knowledge, self-confidence, self-determining, and suspension of judgment on perceptions of audit quality with political pressure as a moderator. Data collection was carried out through a survey of Indonesian Supreme Audit Agency’s (BPK) auditors, resulted in 360 usable responses. Data analysis was carried out using SmartPLS with multiple regression analysis (MRA) test. The results indicate that the independent variables identified by Hurtt (2010), except self-determining, influence perceptions of audit quality. Political pressure is proven to weaken the influence of interpersonal understanding, questioning mind, and search for knowledge on audit quality, but does not moderate suspension of judgment on perceptions of audit quality. The findings indicate that audit quality can be improved when auditors have professional skepticism, which can be realized by having high motivation and integrity, always questioning information or obtaining sufficient audit evidence, obtaining further clarification before making audit conclusions, and demonstrating self-confidence and ability at every step of the audit. Search for knowledge is necessary to clarify complex situations and verify audit conclusions. Political pressure can be avoided if auditors have suspension of judgment so that audit quality can be improved.