Evaluating Internal Audit Excellence: Insights from Auditors and Auditees in Riau Province Regional Inspectorates The purpose of this study is to ascertain the variables that affect audit quality in the Pelalawan Regency, Riau Province, Indonesia, Regiona

Abstract

The purpose of this study is to ascertain the variables that affect audit quality in the Pelalawan Regency, Riau Province, Indonesia, Regional Inspectorate. The Government Internal Supervisory Apparatus' (APIP) function has changed from that of a watchdog to that of a consultant and quality assurance agency in response to the public's growing desire for accountability and openness. This study uses auditor ethics as a moderating variable to investigate the effects of auditor competence, independence, reluctance culture, and professional correctness on audit quality using James Scott's patron-client theory. Using a survey approach, the study gathers primary data from 197 OPD leaders and 142 auditors. Partial Least Squares Structural Equation Modeling (PLS-SEM) is used for analysis. The findings show that while independence and a culture of reluctance have mixed impacts, competence and professional precision favorably affect audit quality. The association between competence and audit quality is strongly moderated by auditor ethics, but not that between independence, a culture of reluctance, or professional precision and audit quality. According to the findings, improving ethical standards and addressing the patron-client relationship are critical for efficient supervision and the reduction of corruption, even though boosting auditor independence and competency is also important. In order to accomplish good governance and raise the caliber of audits in regional administrations, this research emphasizes the necessity of regular training and bolstering the independence of the Regional Inspectorate.