The Effect of Audit Planning on Audit Quality of the Tax Auditor in the Northeastern region

Abstract

For a qualified audit report, the auditors shall have an audit plan and perform the auditing by   the auditing standards and shall have effective and timely capable of properly, completely examining, measuring the value of accounting transactions, and the information in the financial statements is devoid of any major falsification of facts. Therefore, the objectives of this research were to study the relationship and impact between audit planning and audit quality by utilized an instrument for data collection from 145 tax auditors in the northeastern region through the questionnaire via post office, email, line group, and phone. Statistics used for data analysis included multiple correlation analysis, and multiple regression analysis are assigned as statistical techniques of this research. The result of this research showed the audit consideration, plant tour, initial comparative analysis, materiality, acceptable audit risk, and inherent risk, understanding of internal control system and control risk assessment, overall audit plan development or overall audit strategy, and audit program has a positive relationship and impact on the overall quality of the audit. Thus, the results of this research indicated that the tax auditors shall develop and improve the audit planning process to be appropriate and consistent with the changing business and technological environment, leading to quality audit performance. Therefore, the results obtained from this research showed that the tax auditors should have awareness and focus on developing and improving the audit planning process to make it appropriate and consistent with the changing of business and technological environments for leading to good audit performance and create advantages in the auditing profession. In this research, there might be issues of processing to collect data as limitation in doing research.