The Influence of Adherence to Professional Ethics and Auditor Independence on the Limitation of Audit Scope (An Empirical Study of Public Accountants Working in Public Accounting Firms Located in East Jakarta)

Abstract

This research is driven by the importance of applying professional ethics and independence in maintaining the integrity and reliability of financial statements. However, there are still instances of ethics and independence violations, indicating gap s in the application of these principles. The study aims to analyze the impact of adherence to professional ethics and auditor independence on the limitation of audit scope. A quantitative approach with a survey technique was employed in this research. Data were collected from auditors at Public Accounting Firms (KAP) in East Jakarta through questionnaires distributed to respondents selected by purposive sampling. The data were analyzed using multiple linear regression to test the research hypotheses. The results indicate that adherence to professional ethics has a significant effect on the limitation of audit scope. Additionally, auditor independence also significantly influences the limitation of audit scope. Together, these two variables have a significant impact on the limitation of audit scope. These findings highlight the importance of applying professional ethics and independence in audit practices to prevent limitations on audit scope that could be detrimental to various stakeholders. This study contributes to the accounting literature and can serve as a reference for future research as well as professional audit practices in Indonesia. However, the study is limited by its geographical scope, which is restricted to East Jakarta, and by the use of survey methods that rely on the honesty of respondents.

Keywords: professional ethics, independence, financial statement integrity, audit scope