Improving Audit Quality with Risk-Based Approach and Quality of Independent Audit Using the Structure Equation Modeling Evidence West Sumatra

This research assesses the enhancement of audit quality through the application of a risk-based approach (RBA), taking into account the factors influencing the adoption of RBA and the quality of independent audit in West Sumatra. The quantitative research design was employed by utilizing a descriptive survey approach. The research sample was determined via purposive sampling, whereby 42 auditors completed the survey questionnaire. Structural Equation Modeling (SEM) was employed to analyze the data. The results revealed a negative relationship between auditor job pressure, the audit company's competitive capability, audit expenses, client risk, and the implementation of RBA with independent audit quality. A positive relationship exists between auditor capacity and independent audit quality, without influencing RBA. Meanwhile, information technology support for RBA exhibits a negative relationship with independent audit quality. Such results agree with previous findings, particularly concerning audit costs, the role of information technology in audits, and client risk. This research offers recommendations for a comprehensive understanding of the implementation of RBA and the quality of internal controls a means to enhance audit quality.