Mediating Effect of Audit Quality in Relationship Between Auditor Ethics and Litigation: An Empirical Study

Andi Agus, Imam Ghozali
International Journal of Economics and Business Administration, Volume VII, Issue 2, 91- 100, 2019
DOI: 10.35808/ijeba/217


Purpose: This paper attempts to empirically examine the effect of auditor’s ethics on litigation of audit results by using mediating variables of auditor quality. Design/methodology/approach: This study considers a sample of 220 auditors working in public accounting firms using random survey methods. The main technique for analyzing data is Structural Equation Modeling. Findings: The test results show that the auditor ethics has a positive and significant effect on audit quality, while auditor quality has a negative and significant effect on auditor’s litigation. Practical implications: The findings emphasize the importance of the ethical aspects of auditors’ in conducting their tasks. Originality/value: Audit quality in this study is able to strengthen the influence of auditor’s ethics on auditor’s litigation.

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