Auditing Institutions Characteristics and Moral Courage of Auditors

The purpose of this study is to investigates the effect of the characteristics of audit institutions on the moral courage of auditors in the audit institutions of the Securities and Exchange Organization during the year 2019. Moral courage is an indicator in order to increase the quality and improve moral decisions in facing complex issues. The performance, behavior and moral courage of auditor can affect the overall quality of the financial reporting process. Meanwhile, the characteristics of the auditing firm play a significant role in the auditor's moral courage and achieving the goals set to protect public interests. The independent variables of research include power distance, ambiguity and feminity, which were first operationally defined using the opinion of professional experts and then calculated based on the characteristics of the audit institute. The dependent variable of the research is the moral courage of auditors using the moral courage questionnaire based on the Likert scale, which was answered by 57 auditors of the trusted auditing institutions of the Securities and Exchange Organization. The findings of the research show that the variable of power distance and feminity has a significant relationship with the moral courage of auditor, and the ambiguity space has no significant relationship with the moral courage of auditor.