Latest Article

 Articles
PDF XML

HTML

5

Total

5

Title : The Relationship between Self-Efficacy towards Audit Quality with Individualism Culture As Mediates: Evidence from Indonesia





Abstract

This study investigates the effects of individualism culture on audit quality with self-efficacy as mediates. Specifically, it examines the mediating effects of self-efficacy on the relationship between individualism culture to audit quality. Social cognitive theory is employed as a theoretical framework. Using the purposive sampling method, 101 auditors of individualism culture, self-efficacy Indonesian the Supreme Audit were selected as the sample. The results of this study show that self-efficacy has a significant impact on audit quality. This study also finds that individualism culture acts as a mediator variable. This study is for the Supreme Audit Agency, the Inspectorate, Directorate General of Taxes, government internal auditors and independent auditors and academics in the field of accounting education.

INTRODUCTION

Corruption started to become familiar in people’s ears around 1997-1998 in Indonesia, in the era of the New Order downfall which was followed by the long-drawn-out economic crisis. Corruption has become personal culture of a certain person and has covered almost all public sectors, law, economics and business in Indonesia state administration system; however, corruption is often untouchable by law and order. Therefore, Indonesia has become the third rank most corrupted country in the world because of the powerless administration and the increased accrual management in the manufacture industries and BUMN ( Indonesian State Owned Enterprises ) in Indonesia such as the case of bail out scandal of Century Bank, Hambalang scandal, the corruption of athlete sports facilities, Sumber Waras Hospital that involved the Jakarta Administration and the investigative auditor of BPK ( Supreme Audit Agency ) and others. While several case examples in America such as Enron case that caused 70 billion bankruptcies lost in a big and significant market capitalization for investors, employees and retirees.

ADDIN EN.CITE DeAngelo19813`, p. 186DeAngelo (1981, p. 186)3317DeAngelo, L.EAuditor size and audit qualityJournal of Accounting and EconomicsJournal of Accounting and Economics183-199331981DeAngelo (1981, p. 186) defines audit quality as ‘‘the market assessed joint probability that a given auditor will both discover a breach in a client’s accounting system, and report the breach”. A high-quality auditor will detect errors and enhance the reliability of the financial statements ADDIN EN.CITEADDIN EN.CITE.DATA( D. Chan and Wong, 2002 ; Gul et al, 2002 ; Chang et al, 2009 ) ADDIN EN.CITE Carcello 2002 2Carcello et al ( 2002 )2217Carcello, J.V.,Hermanson, D.RRiley, R.ABoard characteristics and audit feesContemporary Accounting ResearchContemporary Accounting Research365-3841932002Carcello et al (2002) find that audit quality is directly linked to the amount of audit work. Many factors affect the quality of the audit, and these factors come not only from within the auditor but also from the outside. In this study, individualism culture and self-efficacy variables are expected to influence audit quality.

The importance of the cultural characteristics of individual auditors in the audit process has been widely documented. For example, studies by ADDIN EN.CITE Agacer 1991 7Agacer and Doupnik ( 1991 )7717Agacer, G.MDoupnik, T.SPerceptions of auditor independence: A cross-cultural studyThe International Journal of AccountingThe International Journal of Accounting220-237261991Agacer and Doupnik (1991), ADDIN EN.CITE Bernardi 1997 8Bernardi et al ( 1997 )88017Bernardi, R.ADonald, FArnold, S.RAn Examination of Moral Development within Public Accounting by Gender, Staff Level, and FirmContemporary Accounting ResearchContemporary Accounting Research653–6681441997Bernardi et al (1997), ADDIN EN.CITE Cohen 1996 9Cohen et al ( 1996 )9917Cohen, J.RLourie, W.PSharp, D.JMeasuring the ethical awareness and ethical orientation of Canadian auditorsBehavioral Research in AccountingBehavioral Research in Accounting98-199Supplement1996Cohen et al (1996), ADDIN EN.CITE Doupnik 1995 10Doupnik and Salter ( 1995 )101017Doupnik, T.SSalter, S.BExternal environment and accounting practice: A preliminary test of a general model of international accounting developmentJournal of Accounting Education and ResearchJournal of Accounting Education and Research189-2073021995Doupnik and Salter (1995), ADDIN EN.CITE Lampe 1994 11Lampe and Sutton ( 1994 )111117Lampe, J.CSutton, S.GEvaluating the work of internal audit: a comparison of standards and empirical evidenceAccounting and Business ResearchAccounting and Business Research335-34824961994Lampe and Sutton (1994) suggest that cultural differences significantly affect the audit process. Self-efficacy is derived from social cognitive theory ADDIN EN.CITE Bandura198620( Bandura, 1986 )20206Bandura, ASocial foundations of thought and action: a social cognitive theory1986Englewood ClifsPrentice-Hall( Bandura, 1986 ) ADDIN EN.CITE Lock199013( Lock and Latham, 1990 )131317Lock, Edwin ALatham, Gary PWork motivation and satisfaction: Light at the end of the tunnelPhsycological SciencePhsycological Science240-246141990( Lock and Latham, 1990 )

Although prior studies have investigated the determinants of audit quality, few studies in the organizational behavior and auditing literature have tested the mediating effects of self-efficacy. The first objective of this study is to examine the effect of individualism culture on audit investigative quality. The second is to investigate whether self-efficacy mediates the relationship between individualism culture and audit investigative quality. This study was carried out because of the importance of audit quality in the decision-making process of stakeholders. By understanding the factors that affect the quality of an audit, auditors can increase their capabilities and thus minimise the occurrence of fraud.

LITERATURE REVIEW AND HYPOTHESES

Social cognitive theory was used by Bandura in response to dissatisfaction with the principles of behaviorism and psychoanalysis. According to the theory, the role of cognition in motivation and the role of motivation are mostly ignored ADDIN EN.CITE Bandura197714( Bandura, 1977 )14146Bandura, ASocial Learning Theory31977Prentice-Hall, Englewood Cliffs, NJ( Bandura, 1977 ) The wider definition of cognition is the acquisition, structuring, and use of knowledge. In subsequent developments, this cognitive term, then, became popular as one of the areas of human psychology/a general concept that includes all forms of recognition, which includes any mental behavior related to the problem of understanding or paying attention.

ADDIN EN.CITE Hofstede 1991 15Hofstede ( 1991 )15156Hofstede, GCultures and Organizations: Software of the Mind1991Bershire, UKMcGraw-Hill International (UK) LimitedHofstede (1991) and ADDIN EN.CITE Hofstede 2001 16Hofstede ( 2001 )16166Hofstede, GCulture's Consequences.2nd Edition2001Thousand Oaks, CASage PublicationsHofstede (2001) identified five dimensions along which national cultures could be compared and contrasted: individualism versus collectivism, large versus small power distance, strong versus weak uncertainty avoidance, masculinity versus femininity, and short-term versus long-term orientation. One cultural dimension (individualism) is identified as a dimension that is closely related to factors affecting errors detected in auditing.

The effects of Individualism culture to audit quality.

Members of an individualist culture are expected to act according to their own interest, and they champion individual achievement. Management in an individualist organization is management of individuals, and the relationship between employer and employee is conceived as a business transaction based on mutual benefit. From a control perspective, this cultural dimension relates to the behavioral aspects of the internal control system and the inherent risks. There is a growing recognition of the importance of personnel policies and practices in implementing effective controls to prevent and detect errors or irregularities in financial statements ADDIN EN.CITE Glover199517( Glover and Aono, 1995 )171717Glover, H.DAono, J.YChanging the model for prevention and detection of fraudManagerial Auditing JournalManagerial Auditing Journal3-91051995( Glover and Aono, 1995 ) ADDIN EN.CITE Chan 2003 18K. H. Chan et al ( 2003 )181817Chan, K. HLin, Kenny. ZMo, P. L. LAn Empirical Study on the Impact of Culture on Audit-Detected Accounting ErrorsAuditing: A journal of practice & theoryAUDITING: A JOURNAL OF PRACTICE & THEORY281-2952222003K. H. Chan et al (2003) argue that based on cultural characteristics, individualist companies have more reliance on accounting numbers for individual performance evaluation. H1: Individualism culture is related to audit quality.

The effects of Individualism culture to self-efficacy.

Social cognitive theory suggests that self-efficacy is a dynamic judgment that changes with organizational context, and it can be affected by individuals’ forethought of the trade-offs between effort and payoff ADDIN EN.CITE He201019( He and Freeman, 2010 )191917He, JFreeman, L.AUnderstanding the formation of general computer self-efficacyCommunications of the Association for Information SystemsCommunications of the Association for Information Systems225-2442612010( He and Freeman, 2010 )

H2: Individualism culture is related to self-efficacy.

The effects of self-efficacy to audit quality.

Self-efficacy refers to the belief in one’s capabilities to successfully perform a specific task ADDIN EN.CITE Bandura1986 2 0( Bandura, 1986 ) 2 02 5t2pzwv22e5wa2p55s7vt925pxd9dzt" timestamp="1483588685">206Bandura, ASocial foundations of thought and action: a social cognitive theory1986Englewood ClifsPrentice-Hall( Bandura, 1986 ) Perceived self-efficacy is concerned with judgments of how well one can execute courses of action that are required to deal with prospective situations ADDIN EN.CITE Bandura1986 2 0`, p. 1 2 2( Bandura, 1986 , p. 1 2 2 )20206Bandura, ASocial foundations of thought and action: a social cognitive theory1986Englewood ClifsPrentice-Hall( Bandura, 1986 , p. 1 2 2 ) and ‘beliefs in one’s capabilities to mobilize the motivation, cognitive resources, and courses of action needed to meet given situational demands’ ADDIN EN.CITE Wood 2 000 2 1( Wood et al, 2000 ) 2 12 5t2pzwv22e5wa2p55s7vt925pxd9dzt" timestamp="1483589542">2117Wood, R.EAtkins, PTabernero, CSelf-efficacy and strategy on complex tasksApplied Psychology: An International ReviewApplied Psychology: An International Review430-4464932000( Wood et al, 2000 ) Self-efficacy is concerned with whether a person believes he can use his skills in specific circumstances ADDIN EN.CITE Stajkovic1998 2 2( Stajkovic and Luthans, 1998 ; Snyder and Lopez, 2009 ) 2 2 2217Stajkovic, A.DLuthans, FSelf-efficacy and work-related performance: a meta-analysisPsycology BulletinPsycology Bulletin240-26112421998C.R20092323236Snyder, C.RLopez, S.JOxford Handbook Of Positive Psychology2009USAOxford University Press( Stajkovic and Luthans, 1998 ; Snyder and Lopez, 2009 ) ADDIN EN.CITE Lunenburg 2 01124( Lunenburg, 2011 ) 2 42 5t2pzwv22e5wa2p55s7vt925pxd9dzt" timestamp="1483590657">2417Lunenburg, F.CSelf-efficacy in the workplace: Implications for motivation and performance. International Journal Of Management, Business and AdministrationInternational Journal Of Management, Business and Administration1-61412011( Lunenburg, 2011 ) ADDIN EN.CITE Bandura1997 2 5( Bandura, 1997 ) 2 52 5t2pzwv22e5wa2p55s7vt925pxd9dzt" timestamp="1483590834">256Bandura, ASelf-efficacy: The Exercise of Control1997New York, NYFreeman( Bandura, 1997 ) ADDIN EN.CITE Cybinski 2005 2 6Cybinski and Windsor ( 2005 ) 2 62 5t2pzwv22e5wa2p55s7vt925pxd9dzt" timestamp="1483591955">2617Cybinski, PWindsor, CThe efficacy of auditors' going-concern opinions compared with a temporal and an atemporal bankruptcy risk model: Analysing US trade and service industry failures 1974-1988. Pacific Accounting ReviewPacific Accounting Review3-361712005Cybinski and Windsor (2005) found that the relationship between self-efficacy and independent auditor's work may offer a different insight into the domain of the internal auditor and audit quality. ADDIN EN.CITE Shih200927( Shih et al, 2009 ) 2 72 5t2pzwv22e5wa2p55s7vt925pxd9dzt" timestamp="1483592202">2717Shih, K.HHsieh, Y.RLin, BModerator effects to internal audits' self-efficacy and job involvement International Journal of Accounting & Information Management 17 (2):151-165.International Journal of Accounting & Information Management 17 (2):151-165.151-1651722009( Shih et al, 2009 ) ADDIN EN.CITE Shea 2 00028( Shea and Howell, 2000 )2828017Shea, C.MHowell, J.MEfficacy-Performance Spirals: An Empirical TestJournal of ManagementJournal of Management791-8122642000( Shea and Howell, 2000 ) ADDIN EN.CITE Bandura1997 2 5( Bandura, 1997 ; Stajkovic and Luthans, 1998 ) 2 52 5t2pzwv22e5wa2p55s7vt925pxd9dzt" timestamp="1483590834">256Bandura, ASelf-efficacy: The Exercise of Control1997New York, NYFreemanStajkovic199822222217Stajkovic, A.DLuthans, FSelf-efficacy and work-related performance: a meta-analysisPsycology BulletinPsycology Bulletin240-26112421998( Bandura, 1997 ; Stajkovic and Luthans, 1998 )

H3: Self-efficacy is related to audit quality.

Many studies have demonstrated that level of self-efficacy can predict work attitude, job training, work performance, job satisfaction, educational development, and knowledge sharing (ADDIN EN.CITE Randhawa200429( Randhawa, 2004 ; Cabrera et al, 2006 )292917Randhawa, GSelf‐efficacy and work performance: an empirical studyIndian Journal of Industrial RelationsIndian Journal of Industrial Relations336-3463932004Cabrera200630303017Cabrera, ACollins, W.CSalgado, J.FDeterminants of individual engagement in knowledge sharingInternational Journal of Human Resource ManagementInternational Journal of Human Resource Management245-264172006( Randhawa, 2004 ; Cabrera et al, 2006 )

H4: Self-efficacy mediates the relationship between individualism culture and audit quality.

METHODS

This study uses primary data. The purposive sampling method is used to select the sample. The sample in this study consists of 69 investigative auditors from Indonesian Supreme Audit. The sample selection is presented in Table 1. In 2017, the total number of auditors at Indonesian Audit Supreme was 288. Of the respondents, 166 are not investigative auditors. Of the 122 invesitgative auditors who sent the questionnaire, 21 were not responsive. Thus, the final sample was 101 can be described in table 1 below:

Table 1 – Sample Selection

Description N
Total auditors 288
Auditor who doesn’t include as investigative auditor ( 166 )
Available sample 122
Respondents didn’t respon the questionnaire ( 21 )
Final sample 101

In this study, the variable of individualism culture is proxied as local culture. The dimensions consist of attitudes, behavior, and symbols. The normative approach views local culture as habits that are common or normatively agreed upon by a particular group. The second independent variable is self-efficacy, which is measured by five dimensions: loyalty to profession, social obligations, independence, confidence, relationship. The instrument was adapted from ADDIN EN.CITE Bandura197714( Bandura, 1977 )14146Bandura, ASocial Learning Theory31977Prentice-Hall, Englewood Cliffs, NJ( Bandura, 1977 ) variance or the component approach of Structural Equation Modeling (SEM) with WarpPLS Program 6.0. The model of this study is as follows:

Y = β1X + β2X* β3M + ε

Z = β1X + ε

Notation :

Y = Audit quality

X = Self-efficacy

Z = Individualism culture

β1, 2, = Coefficient

ε = Error

RESULTS AND DISCUSSION

Descriptive statistics

In table 2 the descriptive statistics describes the general description of each variable totaling 101 research samples consisting of (self efficacy, individual culture auditor, and audit quality investigative) can be described in table 2 below:

Figure 1 Descriptive Statistics

Self efficacy (SE) variable with minimum score 28 and maximum 60 and mean 54,08 mean that from auditor auditor counted 101 auditor average 54,08 auditor (rounded 50 auditor) have ability self qualified as investigative auditor and standard deviation of 6,622 (rounded 7 unqualified auditors) as investigative auditor to improve audit quality.

The individual cultural variable of the auditor (BIA) (with a minimum score of 12 and maximum 31 and averaging 17.16 means that of the total number of investigative auditors of 101 auditors averaging 17.16 auditors (rounded 17 auditors) has a cultural background of individual auditors heterogeneous as investigative auditor and deviation standard 3,602 (rounded 4 uncultured auditors) as investigative auditor to improve audit quality. The investigative auditor quality (KAI) quality variable (with a minimum score of 18 and maximum 46 and an average of 31.97 means that of the total number of investigative auditors 101 auditors an average of 31.97 auditors (rounded 32 auditors) has a quality investigative audit background and standard deviation 3,713 (rounded 4 auditors not qualified as investigative auditor) as investigative auditor to improve audit quality.

Table 2 presents the result of the correlation test. Based on the table, it can be seen that individualism culture is negatively correlated with self-efficacy and positively related with audit quality. This result also shows that self-efficacy is positively correlated with audit quality. The Correlation of variable study is as follows:

Table – 2 Correlation of variables

Table 3 exhibits the result of reliability testing of variables. The result shows that all variables have a Cronbach’s alpha score higher than 0.60. It suggests that all variables can be reliably analysed. The Coefficient and reliability test of latent variable study is as follows:VariablesIndividualism cultureSelf-efficacyAudit qualityIndividualism culture1.000-0.2190.141Self-efficacy-0.2191.0000.372Audit quality0.1410.3721.000VariablesIndividualism cultureSelf-efficacyAudit qualityIndividualism culture1.000-0.2190.141Self-efficacy-0.2191.0000.372Audit quality0.1410.3721.000

Table 3 – Coefficient and reliability test of latent variable

Indicator Individualism culture (X) Self-efficacy (Z) Audit quality (Y)
R-squared 0.167 0.288
Adj.R-squared 0.154 0.267
Composite reliable. 1.000 1.000 1.000
Cronbach’s alpha 1.000 1.000 1.000
Avg.var.extrac. 1.000 1.000 1.000
Full collin.VIF 1.118 1.272 1.235
Q-squared 0.152 0.290

Full Model Testing

The results of the full model research with WARPPLS 6.0 are presented with Figure 1, table 3. Based on the model output of fit and quality indices model has value of APC = 0.338, P <0.001, ARS = 0.260, P = 0.002, AARS = 0.250, P = 0.002, AVIF = 1.019, (acceptable if <= 5, ideally <= 3.3, AFVIF = 1.580, acceptable if <= 5, ideally <= 3.3, GoF = 0.510, small> = 0.1, medium> = 0.25, large> = 0.36). The provision for WarpPLS states that the p values for APC and ARS should be less than 0.05 (significant). The AVIF and AFVIF values as multicolonearity indicators should be less than 5 and the terms for GoF values are small> = 0.1, medium> = 0.25, large> = 0.36. Referring to these provisions, it can be concluded that this research model is fit. The full model test in this study can be described in Figure 1.

The variable used is a variable that has one reflective construct. The purpose of this study was to examine the cultural mediation effect of individual auditors on the relationship between self-efficacy to audit quality investigative. Testing is done with the following WarpPLS 6.0 program:

Figure 2 Full Model Testing

Table 4 – Model Fit and Quality Indices, Path Coefficients and p-Values, Indirect, Total Effects, Effect Size - Full Model

Table 5 presents R-Squared, Q-Squared and Full Collinearity VIF. R-Squared can be used to explain the effect of exogenous variables on endogenous latent variables whether they have substantive influence. Q-Squared is used to find out whether the model has predictive relevance while the value of Q-Squared <0 indicates the model lacks predictive relevance. While the Full Collinearity VIF is the result of full cholinearity testing which includes vertical and literal multicollinearity.

The test results showed that R-Squared value of each endogenous variable was 50 % (KAI) and 2 % (BIA). This research model has predictive relevance because it has value of Q- Squared above 0 (nul). Based on the value of Full Collinearity VIF which is below 3 shows in the research model there is no multikolineritas can be explained in table 5 of this study is as follows:

Table 5 – R -Squared, Q -Squared and Full Colinearity VIFs

R-Squared
Audit quality 0.50
Culture of individual auditors 0.02
Q-Squared
Audit quality 0.023
Culture of individual auditors 0.498
Full Colinearity VIFs
Audit quality 1.890
Culture of individual auditors 1.162
Self Efficacy 1.688

Notation:

SE : Self Efficacy

KAI: Audit quality

BIA: Individualism culture

The strengthening of individualism culture positively affects audit quality. This suggests that the culture of the individual auditor improved audit quality; the culture of the individual auditor is based on local wisdom. The result of this study is consistent with the characteristics of cognitive theory. Cognitive learning theory is more concerned with the learning process rather than the result of learning itself. Learning does not just involve the relationship between stimulus and response; learning involves a complex thinking process. Learning is a change in perception and understanding. Changes in perception and understanding are not always a change in behavior that can be observed.

A change in individualism auditor culture is a learning process that changes the perception and understanding of the ethical audit process, improving the quality of the investigative audit. This study supports a previous study suggesting that the culture of individual auditors is reflected in the audit process of Indonesian Audit Supreme. It influences the quality of the audit (e.g. completion of the audit process at an early stage without improvement of audit procedures).

The culture of individualism auditor negatively affects self-efficacy. Therefore, the diverse acculturation of the individual auditor applied further lowers self-efficacy. The results of this study are not consistent with social cognitive theory. According to the theory, a person believes he/she is able to use his/her skills in specific circumstances ADDIN EN.CITE Snyder200923( Snyder and Lopez, 2009 )23236Snyder, C.RLopez, S.JOxford Handbook Of Positive Psychology2009USAOxford University Press( Snyder and Lopez, 2009 ) ADDIN EN.CITE Lunenburg201124( Lunenburg, 2011 )242417Lunenburg, F.CSelf-efficacy in the workplace: Implications for motivation and performance. International Journal Of Management, Business and AdministrationInternational Journal Of Management, Business and Administration1-61412011( Lunenburg, 2011 )

Self-efficacy positively and significantly impacts audit quality, meaning that self-efficacy is an individual performance that is determined by the effectiveness of the trust audited, including the state. Self-efficacy has been regarded as self-actualization ADDIN EN.CITE Lunenburg201124( Lunenburg, 2011 )242417Lunenburg, F.CSelf-efficacy in the workplace: Implications for motivation and performance. International Journal Of Management, Business and AdministrationInternational Journal Of Management, Business and Administration1-61412011( Lunenburg, 2011 )

The study also provides empirical evidence that the self-efficacy directly influences to audit quality, and individual culture of auditors indirectly influences it. The results of this study partially support previous research; it is possible that the self-efficacy in gathering audit evidence was inadequate, there was inaccuracies in the audit process, or certain audit measures were eliminated. The culture of individual auditors reflected in the behavior at the time of the audit process influences the quality of the investigative audit and includes the completion of the audit process at an early stage without improvement to audit procedures.

The individual culture of the auditor reflected in the behavior during the audit process influences the quality of the investigative audit including completion of the audit process at an early stage without improvement of audit procedures (Otley and Pierce, 1995; Rhode, 1978; Alderman and Deitrick, 1978; Donnelly et al., 2003. : 88) proves that the role of self-efficacy mediates the relationship between the culture of individual auditors positively affecting the quality of investigative audit, whereas this study differs from previous research which proves that the culture of individual auditors acts as a partial mediation between the influence of self-efficacy on the quality of investigative audit. So the relationship of self-efficacy to audit investigative quality has significant effect and there are still other mediation besides individual auditor culture, such as; Auditor's behavior, Audit process and conformity with IFRS-based financial accounting standards and ISA-based audit standards.

Theoretically, this study contributes to the organizational behavior and accounting literature. Practically, the results of this study can be used as a reference for various parties regarding the individual culture of the auditor. Specifically, this study is for the Supreme Audit Agency, the Inspectorate, Directorate General of Taxes, government internal auditors and independent auditors and academics in the field of accounting education. Future study may consider other variables which are expected to affect audit quality, such as competence, independence, experience in auditing, integrity, quality control, client industry specialization, and audit quality benchmarks.

CONCLUSIONS, IMPLICATIONS OF RESEARCH AND FUTURE RESEARCH

The results are consistent with the characteristics of social cognitive theory. Cognitive learning theory is concerned with the learning process rather than the results of learning. The self-efficacy of the auditor positively affects and significant to the individualism culture. The result is consistent with social cognitive theory. Self-efficacy positively affects the quality of the audit. That is, the individualism culture is the performance and motivation of auditors and is determined by the confidence of the auditor, which will improve the quality of the audit. the culture mediates the relationship between Self-efficacy to audit quality. This study provides empirical evidence that individualism culture influences to audit quality directly or indirectly through individualism culture.

Self efficacy positively affect the culture of individual auditors. meaning that the diverse culture of individual auditors applied in BPK is increasing Self-efficacy. The results of this study in line with the theory of Self-efficacy is someone believes he can achieve using his skills in certain circumstances ( Snyder & Lopez, 2007 ). Self-efficacy has been regarded as a self-esteem version ( Lunenburg, 2011 ).

The self-efficacy of the auditor positively affects and significant to the quality of audit. The meaning of Self-Efficacy is that the high performance and motivation of the auditor is determined by the effectiveness of the auditee's trust will improve the quality of the investigative audit. The results of this study proves that self-efficacy has a positive and significant effect on the quality of investigative audit.

The individual culture of the auditor mediates the relationship between self-efficacy and the quality of the investigative audit. The results of this study provide empirical evidence that self-efficacy directly influence the quality of investigative audit or indirectly through the culture of individual auditors. The individual culture of the auditor reflected in the behavior during the audit process influences the quality of the investigative audit including completion of the audit process at an early stage without improvement of audit procedures (Otley and Pierce, 1995; Rhode, 1978; Alderman and Deitrick, 1978; Donnelly et al., 2003. : 88) proves that the cultural role of individual auditors mediating the relationship between self-efficacy has an effect on the quality of investigative audit.

We recommend the upcoming survey of The Supreme Audit Agency auditors throughout Indonesia in addition to Jakarta and West Java. We recommend that future survey research can also be conducted on independent auditors, Government auditors at the Inspectorate, and the Directorate General of Taxes. It is recommended that the sample size be extended to all government auditors to improve the quality of international standardized investigative audits throughout Indonesia.

References

  1. Agacer, G. M. and Doupnik, T. S. ( 1991 ) Perceptions of auditor independence: A cross-cultural study. The International Journal of Accounting, 26220-237.

  2. Bandura, A. ( 1977 ). Social Learning Theory : Prentice-Hall, Englewood Cliffs, NJ.

  3. Bandura, A. ( 1986 ). Social foundations of thought and action: a social cognitive theory . Englewood Clifs: Prentice-Hall.

  4. Bandura, A. ( 1997 ). Self-efficacy: The Exercise of Control . New York, NY: Freeman.

  5. Bernardi, R. A., Donald, F. and Arnold, S. R. ( 1997 ) An Examination of Moral Development within Public Accounting by Gender, Staff Level, and Firm. Contemporary Accounting Research, 1 4 (4):653–668.

  6. Cabrera, A., Collins, W. C. and Salgado, J. F. ( 2006 ) Determinants of individual engagement in knowledge sharing. International Journal of Human Resource Management, 17245-264.

  7. Carcello, J. V., Hermanson, D. R. and Riley, R. A. ( 2002 ) Board characteristics and audit fees. Contemporary Accounting Research, 19 ( 3 ):365-384.

  8. Chan, D. and Wong, K. ( 2002 ) Scope of auditors’ liability, audit quality, and capital investment. Review of Accounting Studies, 7 ( 2 ):97-122.

  9. Chan, K. H., Lin, K. Z. and Mo, P. L. L. ( 2003 ) An Empirical Study on the Impact of Culture on Audit-Detected Accounting Errors. AUDITING: A JOURNAL OF PRACTICE & THEORY, 2 2 (2):281-295.

  10. Chang, X., Dasgupta, S. and Hilary, G. ( 2009 ) The effect of auditor quality on financing decisions. The Accounting Review 8 4 ( 4 ): 1085–1117. The Accounting Review, 8 4 ( 4 ):1085-1117.

  11. Cohen, J. R., Lourie, W. P. and Sharp, D. J. ( 1996 ) Measuring the ethical awareness and ethical orientation of Canadian auditors. Behavioral Research in Accounting, Supplement98-199.

  12. Cybinski, P. and Windsor, C. ( 2005 ) The efficacy of auditors' going-concern opinions compared with a temporal and an atemporal bankruptcy risk model: Analysing US trade and service industry failures 1 974-1988. . Pacific Accounting Review, 1 7 (1):3-36.

  13. DeAngelo, L. E. ( 1981 ) Auditor size and audit quality. Journal of Accounting and Economics, 3 (3):183-199.

  14. Doupnik, T. S. and Salter, S. B. ( 1995 ) External environment and accounting practice: A preliminary test of a general model of international accounting development. Journal of Accounting Education and Research, 30 ( 2 ):189-207.

  15. Glover, H. D. and Aono, J. Y. ( 1995 ) Changing the model for prevention and detection of fraud. Managerial Auditing Journal, 10 ( 5 ):3-9.

  16. Gul, F., Lynn, S. G. and Tsui, J. ( 2002 ) Audit quality, management ownership, and the informativeness of accounting earnings. Journal of Accounting, Auditing and Finance 17 ( Winter ): 25–49. Journal of Accounting, Auditing and Finance, 17 ( Winter ):25-49.

  17. He, J. and Freeman, L. A. ( 2010 ) Understanding the formation of general computer self-efficacy. Communications of the Association for Information Systems, 26 ( 1 ):225-244.

  18. Hofstede, G. ( 1991 ). Cultures and Organizations: Software of the Mind . Bershire, UK: McGraw-Hill International (UK) Limited.

  19. Hofstede, G. ( 2001 ). Culture's Consequences. ( Vol. 2nd Edition ). Thousand Oaks, CA: Sage Publications.

  20. Lampe, J. C. and Sutton, S. G. ( 1994 ) Evaluating the work of internal audit: a comparison of standards and empirical evidence. Accounting and Business Research, 24 ( 96 ):335-348.

  21. Lock, E. A. and Latham, G. P. ( 1990 ) Work motivation and satisfaction: Light at the end of the tunnel. Phsycological Science, 1 ( 4 ):240-246.

  22. Lunenburg, F. C. ( 2011 ) Self-efficacy in the workplace: Implications for motivation and performance. . International Journal Of Management, Business and Administration, 1 4 (1):1-6.

  23. Randhawa, G. ( 2004 ) Self‐efficacy and work performance: an empirical study. Indian Journal of Industrial Relations, 3 9 (3):336-346.

  24. Shea, C. M. and Howell, J. M. ( 2000 ) Efficacy-Performance Spirals: An Empirical Test. Journal of Management, 26 ( 4 ):791-812.

  25. Shih, K. H., Hsieh, Y. R. and Lin, B. ( 2009 ) Moderator effects to internal audits' self-efficacy and job involvement International Journal of Accounting & Information Management 17 ( 2 ):151-165., 17 ( 2 ):151-165.

  26. Snyder, C. R. and Lopez, S. J. ( 2009 ). Oxford Handbook Of Positive Psychology . USA: Oxford University Press.

  27. Stajkovic, A. D. and Luthans, F. ( 1998 ) Self-efficacy and work-related performance: a meta-analysis. Psycology Bulletin, 1 2 4 (2):240-261.

  28. Wood, R. E., Atkins, P. and Tabernero, C. ( 2000 ) Self-efficacy and strategy on complex tasks. Applied Psychology: An International Review, 49 ( 3 ):430-446.


We Recommend


Author's Affiliation
Article Details

Issue: Vol 5 No 4 (2018)
Page No.: 4577-4583
Section: Articles
DOI: https://doi.org/10.18535/ijsshi/v5i4.06


 How to Cite
Djaddang,CA, D., Lyshandra, S., Wulandjani, H., & Sulistiawarni, E. (2018). The Relationship between Self-Efficacy towards Audit Quality with Individualism Culture As Mediates: Evidence from Indonesia. The International Journal of Social Sciences and Humanities Invention, 5(4), 4577-4583. https://doi.org/10.18535/ijsshi/v5i4.06

 Cited by


Article level Metrics by Paperbuzz/Impactstory:

 Statistics at Article Level
HTML = 5 times
PDF   = 5 times
XML   = 0 times
Total   = 5 times