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Jurnal Terapan Ilmu Manajemen Dan Bisnis 2018
provided by Online Journal Universitas Advent Indonesia
Harlyn L. Siagian, Haryati Karo Vol.1 No.1

THE EFFECT OF AUDITOR COMPETENCE, EMOTIONAL

INTELLIGENCE OF AUDITORS, AND AUDITOR
INDEPENDENCE ON AUDITOR
PERFORMANCE

Harlyn L. Siagian, Haryati Karo

Universitas Advent Indonesia, Bandung Jl.
Kolonel Masturi No.28, Bandung Barat
[email protected]

Abstract: This study was conducted to determine the effect of auditor competence on
auditor performance, to determine the effect of auditor emotional intelligence on auditor
performance, to determine the effect of auditor independence on auditor performance and to
determine the effect of auditor competency, auditor emotional intelligence, and auditor
independence on auditor performance at 3 Offices Public Accountant (KAP) in Jakarta.
The variables studied were auditor competency variables, auditor emotional intelligence
variables, and auditor independence variables as independent variables and auditor
performance as the dependent variable. The method used in this research is the descriptive
method, where data is obtained by distributing questionnaires to 43 auditors, analyzed using
SPSS Software and given conclusions.
From the results of the study, the auditor's competency level is below the average, which
means that the auditor does not have good competence. The level of emotional intelligence
above average means that the auditor has good emotional intelligence. The level of auditor
independence is above the average, which means that the auditor has good independence.
The level of auditor performance is above the average, which means that 3 KAPs in Jakarta
have good auditor performance. There is no significant effect on auditor competence on
auditor performance by 0.090, there is a significant effect on auditor emotional intelligence
on auditor performance by 0.000, there is a significant effect on auditor independence on
auditor performance by 0.008, and there is also a significant influence on auditor
competence, auditor's emotional intelligence, and auditor independence simultaneously on
auditor performance at 7,112 with a significance value of 0.001
Keywords: Auditor Competence, Emotional Intelligence Auditor, Auditor Independence,
Auditor Performance
Article history:
Received September 22, 2018; Revised Oktober 20, 2018; Accepted November 10, 2018

Introduction
In achieving company goals, competent employees are needed and indicated by
good performance results. As employees who are assigned as auditors and are
required to be able to provide good performance, and can express their opinions
carefully towards their clients, so that the clients served are satisfied based on the
auditor's independence.
Quality audit results are things that must be safeguarded by the auditor so that the
decision-making process obtained from the consideration of audit results can be of
good quality too. The audit report users expect that the financial statements that
have been audited by public accountants are free of material misstatement, they can
be trusted to be used as a basis for decision making and in accordance with
applicable accounting principles.
Performance is the result of work achieved by someone in carrying out the tasks
assigned. Wijayanti, G.L. (2012: 11) states, Performance is the result of work in
quality and quantity achieved by an employee in carrying out his duties in
accordance with the responsibilities given to him. Quality performance of the
Public Accounting Firm (KAP) is influenced by the performance of human
resources in that place known as auditors. Auditors must follow the rules regarding
professional ethics, general standards and accounting principles, responsibilities to
clients, responsibilities to colleagues, and other responsibilities and practices.
Auditor performance is an implementation of responsibility given in the task of
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examining the company's performance reports that are completed within a certain
period of time. However, the public increasingly questioned the auditor's
performance produced by the auditors along with the many cases that occurred in
the country and abroad. According to the official website of the BPKP (2010) that
in November 2006 the Indonesian Minister of Finance froze the license of Public
Accountant Justinus Aditya Sidharta for two years because it was proven to violate
the Public Accountants Professional Standards (SPAP) relating to Audit Reports.
Auditor competency is how an auditor has the ability and expertise to work on and
carry out his responsibilities easily, quickly, and very rarely makes mistakes that
can support the accuracy of the decisions that will be taken by the auditor.
Tuanakotta (2011) states, Competence is an auditor's expertise obtained from
knowledge, experience, and training. Whereas according to Rai (2008), Auditor
competency is a qualification needed by auditors to carry out performance audits
correctly. Emotional intelligence is a demand for oneself to learn to recognize and
appreciate the feelings of oneself and others and to respond appropriately, applying
effectively energy emotions in life and daily work. According to Choiriah (2013)
states, Emotional intelligence is the ability in the field of emotions, namely the
ability to deal with frustration, the ability to control emotions, the spirit of
optimism, and the ability to establish relationships with others or empathy.
Auditor independence is an auditor who must be free from influence, not controlled
by other parties, not dependent on other parties.
According to Mayangsari (2013) stated, Auditor independence is a qualified
auditor to carry out financial report audits, compliance audits, and operational
audits.
This research will be conducted at three Public Accountant Offices in the region
Jakarta, namely KAP Herman Dody Tanumihardja & Rekan, KAP Kanaka
Puradiredja, Suhartono, KAP Eddy Siddharta & Tanzil in November 2017. The
variables used in the study consisted of independent variables namely auditor
competency (X1), emotional intelligence (X2), and auditor independence (X3). The
dependent variable is the auditor's performance. Data was collected using
questionnaire surveys to get responses to the researcher variable statements.
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Literature Review
Board of Directors (BOD) Governance
According to Arens in Rahayu and Suhayati (2013: 1) Auditing is the process of
collecting and proofing information to determine and report the degree of
conformity between that information and the criteria set. Auditing must be done by
competent and independent people.
The ability of a public accountant to audit a company's financial statements is what
an auditor must have. The better the ability of public accountants, the better it is to
find errors in a report that is not in accordance with applicable regulations.
Tuanakotta (2011) states that competence is an auditor's expertise obtained from
knowledge, experience, and training. Each auditor must meet certain requirements
to become an auditor. Whereas according to Rai (2008), auditor competence is the
qualification needed by auditors to carry out performance audits correctly.
This is in line with Tugiman (2006: 30) that auditor competence is expertise in
implementing various standards, procedures and audit techniques needed in
carrying out audits. Expertise means the ability to apply knowledge to problems
that are generally faced and solve these problems without extensive re-learning and
assistance with meaningful assistance from other parties. An auditor must be
competent, namely having special professional expertise in carrying out his duties.
Agous (2014) said competence shows the achievement and maintenance of a level
of understanding and knowledge that allows a member to provide services with
ease and ingenuity. In the case of professional assignments exceeding the
competence of members or companies, members must consult or hand over clients
to other more competent parties. Each member is responsible for determining their
respective competencies or assessing whether the education, experience, and
considerations needed are sufficient for the responsibilities that must be fulfilled.
The essence of the statement is how an auditor must be able to learn and develop
the level of competence in auditing a financial report.

This is supported by Hendra (2014: 18), stating several indicators of auditor

competence, namely:
1. Auditor's knowledge
2. Auditor experience
Based on the above quotation, the author concludes that the auditor competency
factors are in the form of knowledge and experience to provide quality audit
decisions Emotional Intelligence
According to Choiriah (2013), Emotional Intelligence is the ability to recognize
one's own feelings and other people's feelings, motivate themselves, and manage
emotions well in themselves and in relationships with others.
In Kusuma's research (2011) it is said that based on traditional understanding,
emotional intelligence includes the ability to read, write, and count which is a word
and number skill that is the focus of formal education (school), and actually directs
someone to achieve success in the academic field. But the definition of success in
life is not just this. A new developing view says that there are other intelligence
outside of intellectual intelligence (IQ), such as talent, the sharpness of social
observation, social relationships, emotional maturity, and others that must also be
developed.
According to Rissyo and Nurna (2006), emotional intelligence is intelligence to use
emotions according to desire, the ability to control emotions so that they have a
positive impact. Emotional intelligence can help build relationships with happiness
and well-being and the ability to feel, understand, and effectively apply emotional
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power and sensitivity as a source of human energy, information, connection, and

influence.
Choiriah's results (2013: 6) state that emotional intelligence is the ability in the
field of emotions, namely the ability to face frustration, the ability to control
emotions, the spirit of optimism, and the ability to establish relationships with
others or empathy. This is as stated by Patton that effective use of emotions can
achieve goals in building productive relationships and achieving work success.
Sangadah (2008) explains emotional intelligence is, the ability to manage
emotions in managing personal life and social relationships. In formulating an
operational definition of emotional intelligence, Daniel Goleman's formula is used
to describe the indicators or scales of measurement of emotional intelligence as
follows:
1. Self-control, namely the ability to manage feelings or emotions that arise,
including:
a. The ability to manage feelings of pleasure
b. Ability to manage feelings of sadness
2. Motivation, namely the ability to master themselves as the foundation for
achieving success, which includes:
a. Control your impulses
b. Positive thinking
c. Be optimistic
3. Social Skills, namely the ability to build relationships in social life, which
includes:
a. Easy to get along
b. Tolerated
c. Thinking about social interests
d. Love cooperation and help

Independence
Independence must be owned by all auditors where the attitude is very important in
carrying out the audit process so that the results of the process carried out by the
auditor are able to convince the public or users of the report on the results of the
company's opinion audited by auditors or public accountants.
Bayong (2007) says Independence is free from influence, not controlled by other
parties, not dependent on other parties.
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Auditors whose independence is an auditor who is not influenced by various forces

originating from outside the auditor in considering the facts encountered in the
audit. More independence is determined by factors outside the auditor's self:
Mayangsari (2013: 13) said, that independent auditors are qualified auditors to
carry out financial report audits, compliance audits, and operational audits. Two
characteristics of independent auditors are.
1) Their position is independent of the client in carrying out the audit work and
reports the results of auditing.
2) To practice, they must obtain permission as a public accountant.
From a number of quotations above, it can be concluded that independence is the
attitude of someone KAP member or an auditor who is not easily influenced,
independent, neutral to something or someone else because auditors must provide
professional services and provide reports that have high integrity to be able to
convince users of audit reports.
Because independence is very important for every job, especially for auditors,
many factors can influence that independence. Anrini (2010) states that there are
two independent variables that affect independence, namely:
1. Duration of Relationships with Clients.
Auditor Performance
Performance is not only about work results or work performance, but also about
how our work processes take place.
According to Mathis and Jackson (in Marpaung (2013: 180) that performance is
basically what employees do or don't do. And employee performance affects how
much they contribute to the company.
Mangkunegara (2012: 14) says Performance is the result of work in quality and
quantity achieved by an employee in carrying out his duties in accordance with the
responsibilities given to employees. Employee performance is inseparable from
motivation and other factors such as the ability possessed by employees
themselves.
To be able to know the performance achieved by the auditor, it is necessary to have
a performance measurement indicator. According to Larkin (in Fitriani, 2014: 24),
indicators for measuring performance are:
3. Ability
An auditor who has the ability to audit will be competent in completing his work.
4. Professional Commitment
Auditors with strong professional commitments have an impact on behavior that
leads to compliance with rules, compared to auditors who have low professional
commitment. Commitment is also related to loyalty to the profession.
5. Motivation
The motivation of an auditor will encourage the individual auditor's desire to carry
out certain activities to achieve a goal.
6. Job Satisfaction
Auditor Job Satisfaction can be interpreted as a level of individual satisfaction.
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Research Framework

Auditor Competence
1. Auditor’s Knowledge Auditor Performance
2. Auditor’s Experience 1. Capability
H1
Depen 2. Commitment
3. Professional
Emotional Intelligence H2
4. Motivation
1. Self‐control
5. Job satisfaction
2. Motivation
3. Social Skill

H3
Auditor Independency
1. Audit Tenure
2. Pressure from clients
H4

Methodology
Research is an activity that aims to develop science. The research objectives
include problem finding and problem-solving. To achieve its objectives,
researchers use certain methods or procedures called methods. The research
method used in this research is the descriptive method (descriptive research), which
is a method of collecting data based on current events and reality of a population
studied.

Populations and Samples

The population in this study is the auditor who is in the Public Accounting Office
(KAP) in the Jakarta area.
The author takes a sample of auditors in three Public Accounting Firms (KAP) in
Jakarta.
The sampling technique used in this study is Purposive Sampling, where the
sampling technique of data sources is based on certain considerations, for example,
the person is very expert so it is expected to be able to help the writer to research
specifically in this study (Sugiyono, 2016).

Results
Table 1 shows from the mean result of footwear exports that there is an increase in
the last 2 years even though there is a decline from 2014-2015 based on the
observation of 21 export destination countries.
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Table 1. Descriptive statistics

Mean Std. Deviation Analysis N

2012 167.8095 195.38491 21
2013 183.8571 223.18989 21
2014 253.8095 350.99838 21
2015 214.6190 274.42986 21
2016 220.9524 282.14774 21

Table 2 shows the correlation matrix of all the variables. The result shows that the
correlation matrix is significant at 0.01.

Table 2. Correlation Matrix

2012 2013 2014 2015 2016
Correlation 2012 1.000 .996 .672 .982 .967
2013 .996 1.000 .658 .988 .978
2014 .672 .658 1.000 .648 .633
2015 .982 .988 .648 1.000 .996
2016 .967 .978 .633 .996 1.000
Sig. (1-tailed) 2012 .000 .000 .000 .000
2013 .000 .001 .000 .000
2014 .000 .001 .001 .001
2015 .000 .000 .001 .000
2016 .000 .000 .001 .000
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Table 3 shows the results of KMO test, which tells whether sample size taken for
the factor analysis was adequate or not.

Table 3. KMO and Bartlett’s Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.784

Bartlett's Test of Approx. Chi-Square

257.007
Sphericity
df 10
Sig. .000

Based on the table above, the KMO value is 0.784 which is > 0.5; hence, the
sample size is adequate for the analysis. Further, the Bartlett test of sphericity is
used to test the null hypothesis that the correlation matrix is an identity matrix.
Since significant value (p-value) of the correlation matrix is 0.000 which is < 0.01
hence it is significant, and the correlation matrix is not an identity matrix. Thus it
may be concluded that the factor model is appropriate.

Table 4. Commonalities

Initial Extraction
2012 1.000 .975
2013 1.000 .978
2014 1.000 .558
2015 1.000 .977
2016 1.000 .960
Extraction Method: Principal Component Analysis.

A higher commonality of a variable indicates that the major portion of its

variability is explained by all the identified factors in the analysis. If commonality
of the variable is < .4, it is considered to be useless and should normally be
removed from the model. From table 4, it can be seen that the commonalities of all
the variables are more than .4; hence, all the variables are useful in the model.

Table 5. Total Variance Explained

Extraction Sums of Squared
Component Initial Eigenvalues Loadings
% of Cumulat
Total % of Variance Cumulative % Total Variance ive %
1 4.448 88.958 88.958 4.448 88.958 88.958
2 .507 10.149 99.107
3 .040 .802 99.909
4 .003 .060 99.969
5 .002 .031 100.000
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It can be seen that after rotation, the first factor explain 88.958% of the total
variance, respectively. The eigenvalues for each of the factor are shown in the
table. Only those factors are retained whose eigenvalues are 1 or more than 1. Here,
you can see that the eigenvalue for the first three factors is>1; hence, only one
factor has been retained in this study.
Figure 1. Scree Plot

Scree Plot
5

2
Eigenvalue

0
1 2 3 4 5

Component Number

Figure 1 shows the scree plot which is obtained by plotting the factors (along X-
axis) against their eigenvalues along (Y-axis). This plot shows that only one factor
has eigenvalues above elbow bent; hence, only three factors have been retained in
this study.

Table 6. Component Matrix

Component
1
2012 .988
2013 .989
2014 .747
2015 .988
2016 .980

The factor loadings of all the variables on each of the four factors have been shown
in this table. Since this is an unrotated factor solution, and therefore some of the
variables may show their contribution in more than one factor.

\
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In order to avoid this situation, the factors are rotated. The varimax rotation has
been used in this example to rotate the factors, as this is the most popular method
used by the researchers due to its efficiency.
Variables are usually identified in a factor if their loading on factor 0.7 or
more. This ensures that the factor extracts sufficient variance from that variable.
Based on the table above the result shows that all factors which are from the year
2012-2016 contributed to the exports of footwear in Indonesia.
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