Independence and Competence Effects on Audit Quality: The Moderating Role of Internal Auditor Ethics

Abstrak

This study aimed to examine the effects of auditor independence and auditor competence on audit quality, as well as to investigate the moderating role of internal auditor ethics. This study employed a quantitative descriptive approach and was conducted among internal auditors in the Internal Audit Unit of a private bank in Indonesia. A purposive sampling method was used to select 100 auditors with at least three years’ professional experience. Data were collected using structured questionnaires and analyzed using Moderated Regression Analysis (MRA). The results indicate that auditor independence and competence have positive and significant effects on audit quality. Although internal auditor ethics did not consistently function as a statistical moderator, it served as a reinforcing contextual factor. These findings suggest that audit quality is influenced not only by professional attributes but also by the ethical context. This study was limited to a single organization and relied on self-reported data from the participants. This study contributes to the literature by redefining ethics as a contextual enabler that strengthens audit quality rather than a pure moderating variable.