Professional Documents
Culture Documents
INTRODUCTION
A. RESEARCH BACKGROUND
Professionalism became the main requirement for a person who works as an external
audit. Image of someone who is professional in a profession is reflected into the five
dimensions of professionalism, devotion in the profession, social obligations, independence,
confidence in the profession and setting relations with fellow to establishing Hastuti et al
(2003). Widespread needs of professional services, public accounting as a party that is
considered to be an independent public accountant, demands to improve its performance in
order to provide reliable audit results on behalf of the needy. To be able to improve the
attitude of professionalism in conducting audits of the financial statements, the public
accountant should also have adequate knowledge about the profession code of ethics has been
established by Indonesia to Accounting Bond situation full of unhealthy competition can
avoid Herawaty, and Susanto (2008)
Audit services is a professional services performed by the public accountant and
conducted by an auditor. Its nature as a service company, according to an auditor to act
efficiently carry out its work. As a result the Auditors carry out the audits tend to intensity as
minimum as possible with fixed notice evidence that supports the validity of his opinion.
Public accountant professional standards (SPAP) requires that he had made a report every
time a public accountant is associated with the financial statements. This attachment is not
always in the form of an audit of the financial statements, but it can also just be a help to
draw up financial statements.
The purpose of auditing financial statements by the auditor is to express an opinion on
the reasonableness of all material things, business results and financial position of cash flows
in accordance with generally accepted accounting principles. Audit can be said to be fair and
reasonable, the financial statements do not need to be completely accurate as long as it does
not contain material errors. A problem is said to be material if the lack of disclosure over
wrong-material statement or omission of an account can change the view given to the
financial statements. Materiality relates to the judgment, when associated with evaluation risk
consideration is what will affect how achievement of the objectives of the audit, its scope and
detailed work direction and disposition of errors and omissions. In planning the audit should
be considered by the external auditor is the problem of determination of the level of risk
control is planned and the initial level of materiality considerations for audit purposes.
Materiality itself is the size of the value is omitted or false accounting information,
which is-as seen from the enclosing them can result in changes or the effect on the
consideration of the people who put confidence in that information, due to an omission or
wrong-statement was Mulyadi (2002). Materiality is a basic standard of auditing standard
assignment work field and standard reporting. Therefore, the materiality has influence that
covers all aspects of the audit in the audit of the financial statements. A material amount in
the financial statements of a particular entity may not be material in the financial statements
of other entities have different size and nature. Similarly, the possibility of changing
materiality in financial statements certain entities from one accounting period to another
accounting period.
The auditor's consideration of materiality is a matter of professional policies and is
influenced by the perception of the auditor regarding the needs of report financial reasoned.
The level of materiality of the financial statements of an entity will not be equal to any other
entity depends on the size of the entity. The auditor's responsibility is to determine whether
the financial statements contain material errors. If Auditors find errors that material, he will
ask for the client's attention in order to perform corrective actions. If the client refuses to
correct financial statements, opinions or qualified opinion is not fair will be issued by the
auditor, depending on the extent of materiality errors serving Mulyadi (2002)
This responsibility requires the auditor should be able to examine carefully the
financial report of clients, of course based on the principles of acceptable public accounting.
Examples of cases overwrite is the case that Bank Lippo, cases that occur are irregularities
committed by Bank Lippo's financial statements are issued. Financial statements issued by
bank Lippo were considered misleading were once contained many errors. Here the role of
the auditor is required to review the financial statements. It can occur due to an omission or a
material fact, the omission of information or any material false statement of fact. Rahmawaty
(1997).
B. RESEARCH MOTIVATION
Research on the Professionalism of Auditors had previously been done by Theresia
(2003). The study examines the influence of professionalism of Auditors against the
consideration of the level of materiality. The research found there is one variable that
professionalism of Auditors that the results are not significant. It is not contradictory with the
theory developed Kalbers and Forgaty (1995).
The purpose of the application of materiality is to help auditors plan the gathering of
the evidence should be collected from a high amount but few collect evidence Arifuddin et al.
(2002). This is important to do research to find out the extent to which the auditor's
professionalism and ethics of the profession can affect the level of materiality considerations
in the process of auditing the financial statements. Audit of the financial statements by
outside parties it is indispensable, especially for companies that are in the shape of an Public
company (PT) which is managed by professional management appointed by the shareholders
From the explanation above, the authors are interested in examining the extent of the
influence of the external auditor's professionalism and ethics of the profession to the level of
materiality considerations in the process of auditing the financial statements, in a study
entitled THE EFFECT OF AUDITORS PROFESSIONALISM AN AUDITORS
PROFESSIONAL ETHIC TOWARD MATERIALITY LEVEL JUDGMENT IN
AUDITING PROCESS
C. RESEARCH QUESTION
Formulation of the problem in this research are:
1. Whether the professionalism of Auditors have an effect on the consideration of the
level of materiality in the process of auditing the financial report?
2. What are the ethics of the profession have an effect on the consideration of the level
of materiality in the process of auditing the financial report?
3. is the professionalism and ethics of the profession have an effect on the consideration
of the level of materiality in the process of auditing the financial report?
D. RESEARCH OBJECTIVE
In conducting this research, the goal to be achieved is
CHAPTER II
LITERATURE REVIEW
to establish services offered. Someone who has professional responsibility is greater because
it is assumed that a person has brains, professional knowledge and experience to understand
the impact of activities undertaken.
Ethical behavior is the norm that regulates the relationship between public accounting with
its clients, between public accounting with fellow Chancellors and between professions with
the community and Herawaty Susanto (2008). In General, ethics in values define as
behaviour or rules of conduct that are accepted and used by a particular group or individual
Sukamto (1991). According to Magnis Suseno (1989) and Sony Keraf (1991) to understand
that ethics need to be differentiated with morality. Morality is a system of values about how
one should live as humans Suraida (2005).
Ethical dimensions that are often used in the study are 1) personality, 2)realize of
ethics 3) and ethical awareness of It on the ethics of the profession of concern on the IAI code
of ethics guidelines and rules for all members, whether practicing as a public accountant,
working in environmental efforts on government agencies as well as in the world of
education in environmental compliance responsibilities Suraida professionalnya (2005). A
professional accountant should comply with the regulations of the code of etiknya in each
their behaviour, because it is affecting the quality of services they provide. The code is a
guide for accountants in the execution of his duty, then claimed the existence of a good
understanding of the code of ethics in the accounting services provide Agoes (2003).
Materiality is an important concept in accounting and auditing. The concept of
materiality within the audit underlying the application of generally accepted Auditing
Standards, in particular Standards of work field and Standard Reporting Yendrawati (2008).
Materiality is the magnitude of the value is omitted or incorrect accounting information-food,
judging from the enclosing them, which may result in changes to the effect on the
consideration of the people who put reliance on such information because of the food or
incorrectly busting Sukrisno (1996)
The purpose of the application of materiality is to help auditors plan gathering
sufficient evidence. If the auditor establishes a low amount, more evidence should be
collected from a high amount but few collect evidence Ariffudin et al. (2002). Materiality
affects the application of generally accepted auditing standards, in particular standards of
field work and reporting standards, as well as reflected in the raw form of the auditor's report.
The concept of materiality recognizes that some things, either individually or as a whole, is
B. PREVIOUS RESEARCH
CHAPTER III
RESEARCH METHOD
A. TYPE OF RESEARCH
Qualitative Research
B. SOURCE OF DATA
The population of this research is the accountant who works at a public
accountant who was on the island of Java. Sample research methods were used to
collect data is sampling Purposive sampling procedure i.e. who chooses the sample
population of the element based on the purpose or target of a particular researcher.
The respondents are the Auditors who worked on the CPA Firm of the DKI Jakarta
and Kota Malang
D. DATA ANALYSIS
First, reading and contemplating any potential data is collected until fully
mastered while thinking it over to find if there are any patterns that are interesting or
notable or even perplexing. Search for whether there is a relationship between the
data, is there any equations or precisely opposites or contradiction in view of the wide
range of informants. While reading, ask questions to senantiaa the data will look like,
just ask questions to informants. Second, the various concepts will arise by itself
when it is aware of the terms used by the informants. Investigate the meaning of the
term further. Third, exploit may also colloquial term with specific meaning which can
include or summarize the data. Also use the term contained in the formal discipline to
classify a wide range of data. There is a possibility those terms still need to be adapted
in the specific situation at hand.Made a new term to capture the characteristics of the
particular data category. Thus researchers can see any patterns in the data that is given
a specific term or name
First, start by collecting data. Second, find the issue, event or activity that took
place over and over again to be a category. Third, collect data that gives a lot of
examples of categories, which focus it to know the wide range of dimensions of that
category. Fourth, describe in writing of your investigate categories to describe and
comprehend all aspects contained in the data while continuing to look for new things.
The Fifth. Olah data and models that appear to find processes and basic social
relationships. Sixth, did the encoding, sampling and descriptions written by
concentrating on the core categories of analysis.
REFRENCE LIST
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local government financial reports in Bayelsa State, Nigeria. Current
Research Journal of Social Sciences 5(2) 45-53.
Haron, H., Chambers, A., Ramsi, R., & Ismail. I. (2004). The reliance of external auditors on
internal auditors. Managerial Auditing Journal, 19 (9), 1148
Irriadi and Vannyawati (2011). Pengaruh profesionalisme auditor dalam mengambil
keputusan materialitas. Auditing Journal Ranggagading, 75-81
Saripudin, Netty Herawaty, Rahayu (2012)
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Moderating Effect of Effective Audit Committee on Audit Experience in the Public
Sector: Perception of Internal Auditors. Mediterranean Journal of Social Sciences
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R E S E AR C H
PR O PO SAL
Created by :
Alfina Fittrinnisak
115020307121025
ACCOUNTING DEPARTMENT
FACULTY OF ECONOMIC AND BUSINESS
BRAWIJAYA UNIVERSITY
2014