International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (1223-1232), Month: October 2019 - March 2020, Available at: www.researchpublish.com
The Role of Audit Judgment Mediate the Effect of Moral Reasoning on the Quality of Internal Auditor Cokorda Istri Agung Evita Nindia Putri1, I Wayan Ramantha2, Dewa Gede Wirama3, I Ketut Sujana4 1,2,3,4 1,2,3,4
Udayana University
Faculty of Economics and Bussiness, Bali, Indonesia
Abstract: Audit quality is very important for an internal auditor, through high quality auditors are expected to produce financial statements that are relevant and can be trusted as a basis for decision making, which is influenced by audit judgment and moral reasoning attitude. The purpose of this study is to determine the role of audit judgment in mediating the influence of moral reasoning on the quality of internal auditors at PT Bank BRI Regional Bali. This research was conducted in all twenty-nine offices of PT Bank BRI in the Bali-Nusra Region in the Bali-Nusra Region in 2019 by making 107 auditors as samples with the saturated sample method. Data collection was carried out by distributing 107 returned questionnaires while a total of 13 were aborted, this study used path analysis techniques. Based on the analysis, the moral reasoning variable has a significant positive effect on the quality of internal auditors at PT Bank BRI Regional Bali with a coefficient value of 0.556 and a significance level of 0.000. Moral reasoning has a significant positive effect on internal auditor audit judgment at PT Bank BRI Regional Bali with a coefficient value of 0.782 and a significance level of 0.000. Audit judgment has a significant positive effect on the quality of internal auditors at PT Bank BRI Regional Bali with a coefficient value of 0.325 and a significance level of 0.001. Audit judgment is able to mediate the influence of moral reasoning on the quality of internal auditors at PT Bank BRI Regional Bali with a coefficient value of 0.962 and a significance level of 0,000. Keywords: Audit Judgment, Moral Reasoning, Internal Auditor Quality.
I. INTRODUCTION The country of Indonesia is a developing country where economic development greatly influences the development of the country. One of the supports that can move the wheels of a country's economy is banking (Kasmir, 2008: 56). Banking currently has a very important role in the implementation of national development to improve economic growth and community stability in order to improve people's lives (Aida, 2015). Banks have a very important role in driving the economy of a country, as well as a financial institution whose main business is providing credit to those who need funds and in traffic the payment is to get income (Kasmir, 2008: 62). The phenomenon of problems in the banking world as a financial service provider includes deposits and loans distributed to the public, often with problems in lending, such as the emergence of bad loans or non-performing loans. Bad credit or bad credit is a disease that can disrupt and threaten the system of bank activities, other problems such as fraud are often interpreted as fraudulent acts carried out in a variety of cunning and deceptive ways and are often not realized by the injured victim. In the banking sector, it can be interpreted as a deliberate act of violating internal provisions (policies, systems and procedures) and laws and regulations that are in the interests of personal or other parties that have the potential to harm the bank, both material and moral. Judging from the indications based on preliminary research from cases that have occurred at PT Bank BRI Regional Office of Bali-Nusra, not a few workers are disrespectfully dismissed for being involved in fraud cases such as fictitious credit initiated by the credit department (AO), the use of money conducted by tellers or customer service, abuse of authority by the leadership in lending. As an example of a case that lowers auditor quality, in the case of a conspiracy of fraudulent investments or deposits worth 111 billion for personal interests Bank Mega Jababeka Branch Head and Finance Director of PT Elnusa Tbk and
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