Relationship Between Competence and Independence Referring to Standards General, Field Work Standards, and Reporting Standards as Auditor’s Professional Responsibilities

Abstract

The high number of cases of companies falling due to business failures attributed to auditor failure threatens the credibility of financial statements. This threat further affects the public's perception, especially users of financial statements, of audit quality. Audit quality is important because high audit quality will produce financial reports that can be trusted as a basis for decision making. To support professionalism as a public accountant, auditors in carrying out audit tasks must be guided by the auditing standards set by the Indonesian Institute of Accountants (IAI), namely general standards, field work standards and reporting standards. Where general standards reflect the personal qualities that must be possessed by an auditor which requires the auditor to have sufficient technical expertise and training in carrying out audit procedures. Meanwhile, field work standards and reporting standards regulate auditors in terms of data collection and other activities carried out during the audit and require auditors to prepare a report on the audited financial statements as a whole.