The Influence of Auditor Industry Specialization, and Personal Characteristics, on Audit Quality

Abstract

The main theme of this research is formulated as follows: "It is suspected that public
accountants do not provide audit services with adequate audit quality, because they are
carried out by public accountants who do not specialize in the client industry, and do not
have good personal characteristics." Public accountants who work at a public accounting
firm in Indonesia that are registered with the OJK are respondents in this study, namely
partners. Structural Equation Modeling (SEM) Partial Least Square (PLS) is a hypothesis
testing tool used with explanatory research methods. There is a relationship between auditor
specialization in the client industry and personal characteristics. Specialization of auditors in
the client industry affects audit quality as well as personal characteristics that affect audit
quality. The specialization of auditors in the client industry and personal characteristics and
audit quality at the Big Four Public Accounting Firm shows better conditions compared to
the Non-Big Four Public Accounting Firm.