Exploring the Interplay: Tax Compliance, Financial Reporting Quality, and Auditor Competence - a Survey - Based Analysis

Hisar Pangaribuan, Denok Sunarsi, Jenny Sihombing, Muhammad Saddam

Abstract


This study investigates the impacts of auditor competence (AC) and auditor experience (AE) on tax compliance (TC) and financial reporting quality (FRQ). Employing a quantitative research methodology, the study collected data from 67 auditors in Jakarta using purposive random sampling. These auditors, with a minimum of one year of experience, responded to a structured questionnaire distributed via email and WhatsApp. The data analysis was conducted using Smart-PLS to evaluate relationships between AC, AE, TC, and FRQ. Findings revealed that AC significantly enhances both TC and the FRQ. AE also positively influences these outcomes, albeit its hypothesized role as a moderator in the relationship between AC and the auditing outcomes did not show significant effects. These results underline the importance of both AC and AE in achieving high standards in audits but suggest that the interaction between these factors is complex. The study emphasizes the need for targeted professional development that enhances both the depth of competence and the strategic application of experience. It highlights the importance of creating training programs that address specific skills and knowledge areas relevant to improving audit quality and compliance. 

Keywords


Auditor Competence; Tax Compliance; Financial Reporting Quality; Auditor Experience; Auditing Effectiveness;

Full Text:

PDF

References


D. Surya, E. Pratiwi, G. Wijaya, H. Permadi, and I. Suryani, “Audit Quality and Its Influence on Stakeholder Trust: A Qualitative Analysis,” Golden Ratio Audit. Res., vol. 1, no. 1, pp. 34–44, Dec. 2020, doi: 10.52970/grar.v1i1.364.

L. Mustika, “The Influence of Competence and Experience of Auditors on Audit Outcomes,” Golden Ratio Audit. Res., vol. 3, no. 2, pp. 82–93, Jun. 2023, doi: 10.52970/grar.v3i2.380.

B. Hidayati, F. Y. Hermanto, and A. O. Nnamdi, “Tax education and tax compliance: A multi-ethnic analysis,” JIFA (Journal Islam. Financ. Accounting), vol. 6, no. 1, pp. 34–44, Jun. 2023, doi: 10.22515/jifa.v6i1.6231.

S. A. H. Sayed Hussin, T. M. Iskandar, N. M. Saleh, and R. Jaffar, “Professional Skepticism and Auditors’ Assessment of Misstatement Risks: The Moderating Effect of Experience and Time Budget Pressure,” Econ. Sociol., vol. 10, no. 4, pp. 225–250, Dec. 2017, doi: 10.14254/2071-789X.2017/10-4/17.

A. Isniawati, A. R. Yuliastari, R. Modjaningrat, and F. Baisyir, “The Role Of The Audit Time Budget In The Relationship Of Auditor Competency, Independence, And Experience On Audit Quality,” Financ. J. Akunt., vol. 9, no. 1, pp. 63–74, Jun. 2023, doi: 10.37403/financial.v9i1.500.

D. Cahya Purnama, I. Razak, and P. S Samosir, “The Influence of Job Rotation, Competency, and Audit Tenure on The Quality of Audit Results Through the Independence of the Auditors of PT Difaya Terampil Mandiri,” Int. J. Sci. Res. Manag., vol. 12, no. 03, pp. 6194–6203, Mar. 2024, doi: 10.18535/ijsrm/v12i03.em20.

A. Goklas, S. Riyanto, J. Sihombing, E. N. AM, and D. Sunarsi, “Management of Organizational Performance: The Role of Human Resource Management Strategy,” J. Adm. J. Pemikir. Ilm. dan Pendidik. Adm. Perkantoran, vol. 8(1), pp. 245–254, 2021, doi: https://doi.org/10.26858/ja.v8i1.21873.

A. H. Manurung, S. Riyanto, H. Pangaribuan, E. N. AR, and D. Sunarsi, “The Study of Human Resources Management Practice on Corporate Social Responsibility,” J. Ilm. Ilmu Adm. Publik, vol. 11, no. 1, p. 197, Jun. 2021, doi: 10.26858/jiap.v11i1.21849.

L. Judijanto, T. W. Nurdiani, T. W. Ningsih, and M. Ryketeng, “The Effect of Regulatory Compliance and Digital Audit Adoption on Auditor Performance and Financial Reporting Accuracy in Indonesia,” ES Account. Financ., vol. 2, no. 01, pp. 77–86, Nov. 2023, doi: 10.58812/esaf.v2i01.154.

G. I. Sari, A. Suhaili, and L. Lesfandra, “The Mediation Role of Audit Quality: Impact Internal Audit Strategy, Auditor Ethics, and Accounting Culture on Financial Report Quality,” Atestasi J. Ilm. Akunt., vol. 7, no. 1, pp. 300–316, Mar. 2024, doi: 10.57178/atestasi.v7i1.779.

J. L. Abernathy, A. R. Finley, E. T. Rapley, and J. Stekelberg, “External Auditor Responses to Tax Risk,” J. Accounting, Audit. Financ., vol. 36, no. 3, pp. 489–516, Jul. 2021, doi: 10.1177/0148558X19867821.

R. P. Zain, N. Harsa Sumarta, and P. Gandhi Amidjaya, “Auditor characteristics on tax avoidance by non-financial companies: Evidence from the Indonesia Stock Exchange,” J. Akunt. Audit. Indones., pp. 203–210, May 2023, doi: 10.20885/jaai.vol26.iss2.art9.

Muhamad Abdul Hafizh and Yuha Nadhirah Qintharah, “The Influence of Audit Quality and Auditor Experience on the Auditor’s Fraud Assessment Ability,” eCo-Fin, vol. 6, no. 2, pp. 303–312, Jun. 2024, doi: 10.32877/ef.v6i2.1166.

Y. K. Abbas Mohsin Areef Alsaeedi, “The Impact Of Auditor Experience And Competence On Audit Quality With Moderating Role Of Auditors Ethics: Evidence From Iraq,” Russ. Law J., vol. 11, no. 11s, May 2023, doi: 10.52783/rlj.v11i11s.1880.

E. Mediawati, “The Influence of Auditor Ethics and Auditor Experience on Company Financial Reports,” Int. J. Business, Law, Educ., vol. 4, no. 2, pp. 1270–1281, Nov. 2023, doi: 10.56442/ijble.v4i2.316.

L. A. Muren and H. Pangaribuan, “Pengaruh Reputasi Auditor dan Komite Audit Terhadap Nilai Perusahaan Basic Materials yang Terdaftar Di BEI Periode 2018-2021,” Accounthink J. Account. Financ., vol. 7, no. 2, Oct. 2022, doi: 10.35706/acc.v7i2.7225.

S. Suwaldiman and A. Rheina, “Auditor Reputation Moderates the Impact of Tax Avoidance and Tax Compliance on Firm Value,” Goodwood Akunt. dan Audit. Reviu, vol. 2, no. 1, pp. 27–38, Nov. 2023, doi: 10.35912/gaar.v2i1.2539.

V. U. Trivedi and A. Mawani, “Impact of Tax Advisers and Corrupt Tax Auditors on Taxpayer Compliance,” Can. Tax Journal/Revue Fisc. Can., vol. 68, no. 3, pp. 801–832, Oct. 2020, doi: 10.32721/ctj.2020.68.3.trivedi.

D. Faturachman and G. I. Puspitorini, “Tax Auditor’s Ethics Review from Islamic Perspective (at Regional Office of DGT East Java I),” Ris. Akunt. dan Keuang. Indones., vol. 7, no. 3, pp. 337–344, Apr. 2023, doi: 10.23917/reaksi.v7i3.20762.

S. Tasios and M. Bekiaris, “Auditor’s Perceptions of Financial Reporting Quality: The Case of Greece,” Int. J. Account. Financ. Report., vol. 2, no. 1, p. 57, Feb. 2012, doi: 10.5296/ijafr.v2i1.1286.

T. W. Chow, L. Mohd. Salleh, and I. Arif Ismail, “Lessons from the Major Leadership Theories in Comparison to the Competency Theory for Leadership Practice,” J. Bus. Soc. Rev. Emerg. Econ., vol. 3, no. 2, pp. 147–156, Dec. 2017, doi: 10.26710/jbsee.v3i2.86.

A.-G. Agbaje, R. Sadiq, O. Adesoji, and S. A. Oyindamola, “Effect of Auditor’s Independence on Financial Reporting Quality of Nigerian Deposit Money Bank,” Financ. Internet Q., vol. 17, no. 2, pp. 59–65, Jun. 2021, doi: 10.2478/fiqf-2021-0014.

S. Sumartono, “Professional Skepticism in Moderating the Relationship between Auditors’ Knowledge, Obedience Pressure, and Auditors’ Experience on Audit Judgment,” J. ASET (Akuntansi Riset), vol. 14, no. 1, pp. 135–144, Aug. 2022, doi: 10.17509/jaset.v14i1.44580.




DOI: https://doi.org/10.31334/bijak.v22i1.4458

Refbacks

  • There are currently no refbacks.


Copyright (c) 2025 Majalah Ilmiah Bijak

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

View My Stats

 

MAJALAH ILMIAH BIJAK

ISSN 1411-0830 (Media Cetak) 2621-749X (Media Online)
Email :  [email protected] / [email protected]
Website: http://ojs.stiami.ac.id/index.php/bijak/index

 

INDEKS BY: