The Effect of Audit Tenure, Public Accounting Firm Reputation, and Audit Committee Effectiveness on Audit Quality With Control Variables

Abstract

This study aims to examine the effect of audit tenure, public accounting firm (KAP) reputation, and audit committee effectiveness on audit quality in Islamic Commercial Banks (Bank Umum Syariah / BUS) in Indonesia for the 2019–2024 period, with bank size and profitability as control variables. This research adopts an explanatory quantitative approach based on secondary data from audited financial statements and annual reports. The research population encompasses all Islamic Commercial Banks operating in Indonesia. Through a purposive sampling method, the study obtains 12 Islamic banks with a total of 70 panel data observations after outlier elimination. Data analysis is estimated using the Common Effect Model (CEM) in EViews 14 software. The results indicate that partially, Audit Tenure, KAP Reputation, and Audit Committee Effectiveness have no significant effect on audit quality. Conversely, the control variables, Bank Size and Profitability, have a significant effect on audit quality. Simultaneously, all independent variables along with the control variables have a significant effect on audit quality. This study emphasizes that audit quality in Islamic Commercial Banks in Indonesia is more influenced by asset scale characteristics and financial performance stability rather than merely auditor and audit committee attributes, due to the stringent standardization of Islamic banking regulations.