The Effect of Independence, Competence and KAP Reputation on The Audit Quality of Healthcare Companies Listed on the Indonesian Stock Exchange

Abstract

Purpose: This study aims to empirically test the influence of auditor independence, auditor competence, and KAP reputation on audit quality in healtcare sector companies listed on the Indonesia Stock Exchange (IDX) for the period 2021-2024.

Design/methodology/approach: This study employs a quantitative approach using multiple linear regression analysis, the research sample was determined using purposive sampling.

Findings: The results indicate that, individually, the variables of auditor independence and auditor competence have a significant effect on audit quality with negative coefficients, suggesting that higher levels of independence and competence are associated with shorter audit completion times. Conversely, the KAP reputation was found to have no significant influence on audit quality in companies in the healthcare sector. Simultaneously, the three variables auditor independence influenced audit quality with a coefficient of determination of 12%.

Paper type: Research Paper