International Journal of Research and Review Vol. 10; Issue: 7; July 2023 Website: www.ijrrjournal.com Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237 International Journal of Research and Review (ijrrjournal.com) 414 Volume 10; Issue: 7; July 2023 The Influence of Independence, Competence, and Due Professional Care on the Quality of APIP's Internal Audit with Auditor Ethics as a Moderation Variable in the BPKP Representative of the North Sumatra and Inspectorate of the North Sumatra Oktavian 1 , Iskandar Muda 2 , Khaira Amalia Fachrudin 3 1,2,3 Department of Accounting, Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia Corresponding Author: Oktavian DOI: https://doi.org/10.52403/ijrr.20230752 ABSTRACT BPK found 15,674 problems related to financial management in Indonesia worth IDR 18.37 trillion in the first semester of 2022. This indicates that APIP's role has yet to be fully effective in providing adequate assurance of compliance, efficiency, thrift, and effectiveness in achieving the objectives of carrying out the duties and functions of government agencies. This study examines the effect of independence, competence, and due professional care on internal audit quality with auditor ethics as a moderating variable. The research was carried out on auditors/P2UPD at the BPKP Representative Office of North Sumatra Province and the Inspectorate of North Sumatra Province. This quantitative research uses primary data collected through questionnaires that 151 respondents have filled in. Research data is processed using multiple regression analysis methods. This research concludes that independence, competence, and due professional care positively and significantly affect internal audit quality. In addition, auditor ethics can significantly strengthen the relationship between independence and internal audit quality. However, auditor ethics cannot significantly strengthen the relationship between competence and due professional care with internal audit quality. Keywords: BPKP, inspectorate, independence, competence, due professional care, auditor ethics, internal audit quality INTRODUCTION The low performance of state financial management is one aspect that can hinder sustainable development in Indonesia. History records that Indonesia, which was once dubbed the "Asian Tiger" in 1980- 1990, ultimately had to slump in 1997-1998 due to a monetary crisis. Corruption-riddled state financial management placed Indonesia first as the most corrupt country in Asia in 1998 with a Corruption Perception Index of only 20 (setkab.go.id January 31, 2019). The monetary crisis resulted in very high inflation, which resulted in the collapse of the Indonesian economy. In the end, President Soeharto, who had led the Indonesian state in the New Order era for 32 years, was forced to resign from his position as President on May 21, 1998, due to demands from the Indonesian people who no longer believed in his leadership. This change was the beginning of the birth of reform in Indonesia. In Indonesia, reforms in various aspects of life have raised awareness about the need for accountability and transparency in managing state finances. Changes in regulations regarding the management and