The Effect of Personal, External and Organizational Disturbances on Auditors’ Independence through Locus of Control as the Intervening Variable

Abstract

This The purpose of this research was to analyze the effects of personal disturbance, external disturbance and organizational disturbance on auditors’ independence through locus of control as an intervening variable in Inspectorate of Riau Province. Primary data were obtained from 39 out of 40 questionnaires distributed to respondents. 10 hypotheses were proposed in this research which were tested using the statistical t-test in the form of SEM analysis using SmartPLS program (v.3.2.8) for Windows. The results of the research were indicated by the R2value showing auditors’ independence of 57.1% and R2of locus of control of 65.8%. Those values indicated that (1) Personal disturbances, external disturbances, and organizational disturbances did not affect auditors’ independence, while locus of control had a direct and significant effect on auditors’ independence. (2) Personal disturbances, external disturbances, and organizational disturbances hada direct and significant effect on the locus of control. (3) Personal disturbances and organizational disturbances had indirect and significant effect on auditors’ independence through locus of control, while external disturbances did not affect auditors’ independence through locus of control.