Auditor Knowledge Deficiency, Work Experience, and Internal Control Systems as Determinants of Audit Disclosure Quality: A Mixed-Method Inquiry
##plugins.themes.EpsilonTheme.article.main##
Nurlaila Masirotul Jannah*
Choirul Anwar
Agung Dharmawan Buchdadi
In an increasingly complex business environment, the quality of audit disclosures has become a critical concern for stakeholders, regulators, and the accounting profession, as weaknesses in auditor competence and organizational systems continue to undermine the reliability of financial reporting. This study aims to analyze the effect of auditor knowledge deficiency, auditor work experience, and internal control systems on the quality of audit disclosure in Public Accounting Firms. This research employs a mixed method approach with an explanatory sequential design, where the quantitative stage is conducted first through questionnaires distributed to 45 auditors and audit managers, followed by a qualitative stage using in-depth interviews to strengthen the interpretation of the findings. Quantitative analysis is done using the SEM-PLS method to examine the relationships between variables, while qualitative analysis is used to explore the processes and conditions influencing audit disclosure quality. The results indicate that auditor knowledge, work experience, and internal control systems have a positive and significant effect on audit disclosure quality. Auditor knowledge plays a role in determining the accuracy and relevance of disclosed information, work experience enhances professional judgment and the preparation of audit narratives, and internal control systems ensure the availability of accurate and traceable data. The integration of quantitative and qualitative findings shows that audit disclosure quality is formed through the synergy between auditor competence and organizational system effectiveness. This study contributes to understanding the factors affecting audit disclosure quality and highlights the importance of improving auditor competence and strengthening internal control systems in modern auditing practices.
Anjani, P. (2023). Enhancing transparency and trust through effective financial statement audits. Advances in Managerial Auditing Research, 1(3), 103–113. https://doi.org/10.60079/amar.v1i3.228
Babalola, F. I., Kokogho, E., Odio, P. E., Adeyanju, M. O., & Sikhakhane-Nwokediegwu, Z. (2022). Redefining audit quality: a conceptual framework for assessing audit effectiveness in modern financial markets. International Journal of Multidisciplinary Research and Growth Evaluation, 3(1), 690–699. https://doi.org/10.54660/.IJMRGE.2022.3.1-690-699
Boynton, W. C., & Johnson, R. N. (2005). Modern auditing: Assurance services and the integrity of financial reporting. John Wiley & Sons.
Celestin, M. (2020). The Role of Data Analytics in Enhancing the Effectiveness of Audit Procedures and Financial Statement Reviews. Brainae Journal of Business, Sciences and Technology, 4(8), 835–845. https://doi.org/10.5281/zenodo.15056688
Creswell, J. W., & Clark, V. L. P. (2017). Designing and Conducting Mixed Methods Research. SAGE Publications.
Dan, Z. (2024). Analysis of the Impact of Internal Control on Accounting Information Quality: A Perspective from Adverse Internal Control Opinions. Academic Journal of Business & Management, 6(12), 103–108. https://doi.org/10.25236/AJBM.2024.061213
Darmawan, A. (2023). Audit quality and its impact on financial reporting transparency. Golden Ratio of Auditing Research, 3(1), 32–45. https://doi.org/10.52970/grar.v3i1.375
Endaryono, B. T., Prasetyo, A., & Baliarto, S. (2024). Peran Penting Tujuan Pengauditan Dan Asersi Manajemen Diperusahaan. Jurnal GICI Jurnal Keuangan Dan Bisnis, 16(1), 29–36. https://doi.org/10.58890/jkb.v16i1.259
Ferdia, M. S., & Kammoun, P. A. (2024). Conceptual framework of internal control. PSYCHOLOGY AND EDUCATION, 61(8), 1459–1471. https://psychologyandeducation.net/pae/index.php/pae/article/view/9289
Grassmann, M., Fuhrmann, S., & Guenther, T. W. (2022). Assurance quality, disclosed connectivity of the capitals and information asymmetry–an interaction analysis for the case of integrated reporting. Meditari Accountancy Research, 30(3), 852–892. https://doi.org/10.1108/MEDAR-11-2020-1087
Husain, S. H., Che-Ani, A. I., Affandi, H. M., Nasri, N. M., & Musid, N. A. (2020). Mismatch in supply and demand of building surveying graduates’ skills: A triangulation perspective. Journal of Technical Education and Training, 12(4). https://doi.org/10.30880/jtet.2020.12.04.007
Indah, S. N. M. (2022). The effect of auditor competence and independence on audit quality. Indonesia Auditing Research Journal, 11(4), 162–173. https://doi.org/10.35335/arj.v11i4.9
Julius, S. A. (2024). The Digital Transformation of Accounting Standards: Past Developments, Current Practices, and Future Directions for Research. International Journal of Novel Research in Marketing Management and Economics, 11(3), 94–108. https://doi.org/10.5281/zenodo.14353182
Lim, S. J., White, G., Lee, A., & Yuningsih, Y. (2017). A longitudinal study of voluntary disclosure quality in the annual reports of innovative firms. Accounting Research Journal, 30(01), 89–106. https://doi.org/10.1108/ARJ-08-2013-0056
Nurhaliza, D., & Kuntadi, C. (2025). The Influence of Auditor Experience, Management Support and Internal Control Effectiveness on the Effectiveness of the Internal Audit Function. MESARI (Management, Economics, Accounting, and Business Research Innovations), 1(1), 1–9. https://doi.org/10.70103/mesari.v1i1
Putri, R. H. M., & Mardijuwono, A. W. (2020). The effect of competence, work experience, professionalism, and auditor independence on audit quality. International Journal of Innovation, Creativity and Change, 13(9), 1–12. https://www.ijicc.net/images/vol_13/Iss_9/13901_Putri_2020_E_R.pdf
Qiao, C., Zheng, G., & Zheng, Y. (2023). Can industry information disclosure improve audit quality? China Journal of Accounting Research, 16(4), 100327. https://doi.org/10.1016/j.cjar.2023.100327
Rumasukun, M. R. (2024). Developing auditor competencies through continuous training and education. Golden Ratio of Auditing Research, 4(1), 14–23. https://doi.org/10.52970/grar.v4i1.384
Salvi, A., Vitolla, F., Giakoumelou, A., Raimo, N., & Rubino, M. (2020). Intellectual capital disclosure in integrated reports: The effect on firm value. Technological Forecasting and Social Change, 160, 120228. https://doi.org/10.1016/j.techfore.2020.120228
Smieliauskas, W., Ye, M., & Zhang, P. (2020). Auditing and society: research on audit practice and regulations. Routledge.
Smith, A., & Jones, B. (2021). Enterprise Risk Management: From Theory to Practice. Risk Management and Insurance Review, 24, 27–47.
Ton, K. (2023). Do shared auditors improve audit quality? Evidence from banking relationships. The Accounting Review, 98(1), 423–451. https://doi.org/10.2308/TAR-2017-0179
Weiyu, X., Hongman, W., & Qijia, L. (2025). The Impact of Corporate ESG Information Quality on Audit Quality: An Empirical Study. International Journal of Economics and Finance Management, 8(4), 100–109. https://iigdpublishers.com/storage/VQULT2X6me14JDbDlP0Sz39ZOuVng3-metaVGhlIEltcGFjdCBvZiBDb3Jwb3JhdGUgRVNHIDEwMC0xMDkucGRm-.pdf
