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

Abstract

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. The research 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 of professional experience. Data were collected through structured questionnaires and analyzed using Moderated Regression Analysis (MRA). The results indicated that auditor independence and competence had a positive and significant effect on audit quality. Although internal auditor ethics did not consistently function as a statistical moderator, it acted as a reinforcing contextual factor. These findings suggest that audit quality is influenced not only by professional attributes but also by ethical context. This study was limited to a single organization and relied on self-reported data. The contribution of this study lies in redefining ethics as a contextual enabler that strengthens audit quality rather than a pure moderating variable.