THE EFFECT OF PUBLIC ACCOUNTING FIRM’S QUALITY CONTROL SYSTEM, AUDITOR SPECIALIZATION, AND SPAN OF CONTROL ON AUDIT DEFICIENCIES
Keywords:Audit Deficiency, Audit Quality, Quality Control System, Public Accountant, Finance Professions Supervisory Centre
Purpose: This study is to analyse Public Accounting Firm’s Quality Control System (QSC), Auditor Specialization, and Span of Control on Audit Deficiencies. We look at this issue because there is little research on QCS, inconsistency result on Auditor Specialization on Audit Quality, and inconsistency result on Span of Control.
Design/methodology/approach: We used a cross section dataset of 268 Public Accountants that were inspected by the Indonesian Finance Professions Supervisory Centre (Nationally known as PPPK/ Pusat Pembinaan Profesi Keuangan) from 2016-2019.
Findings: We find that Public Accounting Firm’s QCS can minimize Audit Deficiencies, Auditor Specialist has no effect on audit deficiencies which can be caused because it is a public accounting firm's business strategy, and span of control has no effect on audit deficiencies. This indicates that the partner's role is less involved in an engagement.
Originality: Our results answer a call from Fauji et al. (2015) and strengthen Aobdia’s (2020) study suggesting that there is still little research about QCS.
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