Main Article Content
Based on ethical judgment, we examine the Auditor experience and ethical judgment: Examining the moderating role of knowledge. We hypothesize that the auditor’s knowledge can be moderate the effect of auditor’s experience on ethical judgment. Our research hypothesis was tested in a survey of 97 government auditors in South Sulawesi (Indonesia). Variance-based SEM techniques (structural equation models) with employs WarpPLS 6.0 was used to verify the hypothesis. The results of the study show that the auditor's knowledge acts as a quasi-moderator variable in explaining the relationship between auditor’s experience and ethical judgment.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors wishing to include figures, tables, or text passages that have already been published elsewhere are required to obtain permission from the copyright owner(s) for both the print and online format and to include evidence that such permission has been granted when submitting their papers. Any material received without such evidence will be assumed to originate from the authors.
. Alias, NF, Nawawi, A., & Copy, ASAP (2019). Internal Auditors' Compliance to Code of Ethics: Empirical Findings from Malaysian Government-Linked Companies. Journal of Financial Crime, (just-accepted), 00-00.
. Ashton, AH (1991). Experience and error frequency knowledge as potential determinants of audit expertise. Accounting Review, 218-239.
. Bandura, A. (1991). Social cognitive theory of self-regulation. Organizational behavior and human decision processes, 50 (2), 248-287.
. Bedard, J. (1989). Expertise in auditing: Myth or reality ?. Accounting, Organizations and Society, 14 (1-2), 113-131.
. Bonner, SE, & Lewis, BL (1990). Determinants of auditor expertise.Journal of accounting research, 1-20.
. Chi, W., Myers, LA, Omer, TC, & Xie, H. (2017). The effects of audit pre-client and client-specific partners experience on audit quality and perceptions of audit quality. Review of Accounting Studies, 22 (1), 361-391.
. DeZoort, FT, & Lord, AT (1994). An investigation of the obedience of pressure effects on auditors' judgments. Behavioral Research in Accounting, 6 (1), 1-30.
. Dunn, P., & Sainty, B. (2019). Professionalism in accounting: a five-factor model of ethical decision-making. Social Responsibility Journal.
. Fisher, J., Blottiax, M., Daniel, S., Oliveria, H., Green, D., Osaka, O., & Trakkidi, A. (2013). The global financial crisis: the case for a stronger criminal response. Law and Financial Markets Review, 7 (3), 159-166
. Gissel, JL, & Johnstone, KM (2016). Information sharing during the auditors' fraud brainstorming: Effects of psychological safety and auditor knowledge. Auditing: A Journal of Practice & Theory, 36 (2), 87-110.
. Hair, JF, Ringle, CM, & Sarstedt, M. (2013). Structural equation modeling of least least squares: Rigorous applications, better results and higher acceptance.
. Han, J., Jamal, K., & Tan, HT (2011). Auditors' overconfidence in predicting the technical knowledge of superiors and subordinates. Auditing: A Journal of Practice & Theory, 30 (1), 101-119
. Hapsari, NN (2013). Effect of Auditor Experience and Ethical Orientation on Ethical Decisions of State Auditors with Professional Commitments as Intervening Variables. El Muhasaba: Journal of Accounting, 2 (2).
. Haryanti, CS (2016). The Effect of Experience and Auditor Training on the Knowledge Structure of Auditor Errors.
. Hasanuddin, R., & Sjahruddin, H. (2017). The Structure of Emotional Intelligence, Spiritual Intelligence and Its Relationship with Work Enthusiasm and Auditor Performance. World Journal of Business and Management, 3 (1), 67.
. Herliansyah, Y., & Ilyas, M. (2006). Effects of Auditor Experience on the Use of Evidence Irrelevant in Auditor Judgment. SNA 9 Padang, 23-26.
. Hunt, SD, & Vitell, S. (1986). A general theory of marketing ethics. Journal of macromarketing, 6 (1), 5-16.
. Ismail, S., & Yuhanis, N. (2018). Determinants of ethical work behavior from Malaysian public sector auditors. Asia-Pacific Journal of Business Administration, 10 (1), 21-34.
. Januarti, I. (2011). Analysis of the Effects of Auditor Experience, Professional Commitment, Ethical Orientation and Value of Organizational Ethics on Ethical Perception and Consideration (Auditor of the Indonesian Audit Board). Paper Presented at the National Symposium on Accounting XIV, Aceh.
. Jones, JJ (1991). Earnings management during import relief investigations. Journal of accounting research, 193-228.
. Kock, N. (2011). Using WarpPLS in e-collaboration studies: Mediating effects, control and second order variables, and algorithm choices. International Journal of e-Collaboration (IJeC), 7 (3), 1-13.
. Larkin, JM (2000). The ability of internal auditors to identify ethical dilemmas. Journal of Business Ethics, 23 (4), 401-409.
. Libby, R., & Frederick, DM (1990). Experience and the ability to explain audit findings. Journal of Accounting Research, 348-367.
. Libby, R., & Luft, J. (1993). Determinants of judgment performance in accounting settings: Ability, knowledge, motivation, and environment. Accounting, organizations and society, 18 (5), 425-450.
. Liu, Chengli, & Zhang, Jixun. (2008). Time pressure, accountability and audit judgment performance: an experimental study. China Account. Rev, 4, 405-424.
. Miko, NU, & Kamardin, H. (2015). Impact of audit committee and audit quality on preventing earnings management in the 2011 pre-and post-Nigerian corporate governance code. Procedia-Social and Behavioral Sciences, 172, 651-657
. Mirshekary, S., & Carr, R. (2015). Effects of exposure practices on personal attitudes of accountants in small accounting firms. Journal of Management & Organization, 21 (1), 98-106.
. Morales, J., Gendron, Y., & Guenin-Paracini, H. (2014). The construction of the risky individual and criminal organization: A genealogy of the fraud triangle. Accounting, Organizations and Society, 39 (3), 170-194.
. Neu, D., Everett, J., & Rahaman, US (2013). Internal auditing and corruption within the government: The case of the Canadian Sponsorship Program. Contemporary Accounting Research, 30 (3), 1223-1250.
. Putri, AR, Nasir, A., & Safitri, D. (2016). Effect of Time Budget Pressure, Task Complexity, Auditor Knowledge, and Auditor's Experience on Audit Judgment (Case Study of Kap in Pekanbaru, Batam, and Padang). Student Online Journal (JOM) in Economics, 4 (1), 1282-1294.
. Putri, PA, & Laksito, H. (2013). The influence of ethical environment, auditor experience and compliance pressure on audit judgment quality. Diponegoro Journal of Accounting, 383-393.
. Rakhmalia, A. (2013). Effect of Knowledge, Experience and Ethical Orientation on the Audit Judgment with Ethical Decision Making as Intervening Variables (Study at the Public Accounting Firm in Central Java) (Doctoral dissertation, Semarang State University).
. Republic of Indonesia. (2006). Minister of Home Affairs Regulation Number 13 of 2006 concerning Regional Financial Management.
. Roussy, M. (2013). Roles' internal auditors: From watchdogs to helpers and protectors of the top managers. Critical Perspectives on Accounting, 24 (7-8), 550-571.
. Schmidt, RN (2014). The effects of auditors' accessibility to "tone at the top" knowledge on audit judgments. Behavioral Research in Accounting, 26 (2), 73-96.
. Shockley, CD (2018). Ethical Decision-Making and Internal and External Auditors: A Quantitative Study (Doctoral dissertation, Capella University).
. Sholihin, M., & Ratmono, D. (2013). SEM-PLS analysis with WarpPLS 3.0 for Nonlinear Relationships in Social and Business Research. Yogyakarta: CV. Andi Offset.
. Siriwardane, HP, Kin Hoi Hu, B., & Low, KY (2014). Important Skills, Knowledge, and Attitudes for Day Auditors. International journal of auditing, 18 (3), 193-205.
. Sjahruddin, H., & Normijati, A. A. S. (2013). Personality effect on organizational citizenship behavior (OCB): trust in manager and organizational commitment mediator of organizational justice in Makassar City Hospitals (Indonesia). European Journal of Business and Management, 5(9), 95-104.
. Suddaby, R., Gendron, Y., & Lam, H. (2009). The organizational context of professionalism in accounting. Accounting, organizations and society, 34 (3-4), 409-427.
. Suweknyo, A. (2016). Effects of Compliance Pressure, Task Complexity, Knowledge, Ethical Perception and Self-Efficacy on Audit Judgment (Empirical Study in Surakarta and Yogyakarta Public Accounting Firm) (Doctoral dissertation, Muhammadiyah University Surakarta).
. Trevino, KT (1986), "Ethical decision making in organizations: a person-situation interaction model", Academy of Management Review, Vol. 11 No. 3
. Tubbs, RM (1992). The effect of experience on the auditor's organization and amount of knowledge. Accounting Review, 783-801.
. Uyar, A., & Gungormus, AH (2011). Professional knowledge and skills required for accounting majors who become auditors: Perceptions of external auditors. Business and Economics Research Journal, 2 (3), 33.
. Yendrawati, R., & Mukti, DK (2015). Effect of gender, auditor experience, task complexity, obedience pressure, work ability and auditor knowledge on judgment audits. Asian Journal of Innovation and Entrepreneurship, 4 (01), 1-8
. Yustrianthe, RH (2012). Several factors that influence audit judgment of government auditors. Journal of Dynamics of Accounting, 4 (2).
. Ziegenfuss, DE, & Singhapakdi, A. (1994). Professional values and the ethical perceptions of internal auditors. Managerial Auditing Journal, 9 (1), 34-44.