DECOLONIZING AUDIT KNOWLEDGE: INDIGENOUS INDONESIAN WISDOM AND THE FUTURE OF AUDIT PHILOSOPHY

Abstract

This study challenges the hegemony of Western audit epistemology by exploring how indigenous Indonesian wisdom can inform alternative audit philosophies. Through an ethnographic investigation across Java, Sumatra, and Sulawesi, we examine how local concepts of gotong royong (mutual cooperation), musyawarah (deliberative consensus), rukun (harmonious unity), and Pancasila values shape audit practice in ways that transcend Western theoretical frameworks. Drawing on decolonial theory and indigenous methodology, we conducted participant observation and in-depth interviews with 35 auditors, traditional leaders (tokoh adat), and community stakeholders across diverse Indonesian contexts. Our findings reveal a distinctive audit philosophy that prioritizes communal accountability over individual responsibility, relational harmony over adversarial verification, and wisdom-based judgment over technical compliance. We develop a framework of "Nusantara Audit Philosophy" that integrates indigenous epistemologies with professional practice, offering a decolonial alternative to imported audit theories. This study contributes to the growing literature on accounting decolonization by demonstrating how indigenous knowledge systems can generate innovative theoretical insights relevant to global audit challenges, while preserving cultural authenticity and resisting epistemological imperialism.