Jasmine Ashila Humairah Syarifudin, Efrizal Syofyan

Pengaruh Kompetensi Auditor, Pelaksanaan Pengendalian Internal, Ukuran dan Kompleksitas Perusahaan terhadap Kualitas Audit Eksternal pada Perusahaan Publik di Indonesia

Introduction

Pengaruh kompetensi auditor, pelaksanaan pengendalian internal, ukuran dan kompleksitas perusahaan terhadap kualitas audit eksternal pada perusahaan publik di indonesia. Kualitas audit eksternal dipengaruhi oleh kompetensi auditor, pengendalian internal, ukuran & kompleksitas perusahaan. Studi ini mengungkap faktor kuncinya di perusahaan publik Indonesia.

Abstract

This study examines how auditor competence, internal control, company size, and complexity affect external audit quality. It uses a causal research design with a quantitative approach, analyzing annual reports from 102 manufacturing firms between 2021 and 2023. Using logistic regression analysis,the findings reveal that auditor competence and internal control, while essential, do not independently improve audit quality due to perfect prediction issues, and company size and complexity also show no significant effect. However, all variables together do influence audit quality, highlighting that basic factors alone are not enough audit quality depends more on standard compliance and external factors. This study contributes new insights by challenging common assumptions about audit quality drivers and pointing out methodological challenges, offering valuable guidance for future research.

Review

This study critically examines the impact of auditor competence, internal control, company size, and complexity on external audit quality within 102 Indonesian public manufacturing firms between 2021 and 2023. Employing a quantitative causal design and logistic regression analysis, the research sets out to challenge common assumptions about audit quality drivers. The ambition to provide fresh insights and highlight methodological challenges for future research is commendable, offering a potential path for deeper understanding in a crucial area of corporate governance. However, the reported findings present significant methodological hurdles that complicate the interpretation of the study's ultimate conclusions. The abstract states that auditor competence and internal control "do not independently improve audit quality due to perfect prediction issues." This indicates a fundamental problem with the logistic regression model, suggesting that individual effects could not be reliably estimated rather than definitively proving their absence. Perfect prediction often stems from data scarcity, highly correlated predictors, or model misspecification, leading to unreliable or infinite coefficient estimates. Thus, concluding that these factors do not independently improve audit quality may be premature. Similarly, while company size and complexity also show no significant effect, the subsequent statement that "all variables together do influence audit quality" is vague and needs further clarification given the preceding methodological issues, making it difficult to ascertain if the study genuinely challenges assumptions or if the results reflect analytical limitations. Given these analytical challenges, the study's contribution to challenging common assumptions should be viewed with caution. The conclusion that "audit quality depends more on standard compliance and external factors" appears to be an extrapolation not directly supported or tested by the current model, especially when the primary variables under investigation suffered from estimation issues. For future research, it is imperative to address the "perfect prediction issues" through more robust logistic regression techniques, re-evaluating variable operationalization, or exploring alternative proxies for audit quality. Directly investigating the influence of "standard compliance and external factors" would also be a valuable extension, providing a more robust and comprehensive understanding of external audit quality drivers beyond the scope constrained by the current study's analytical limitations.

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