This research aims to examine the factors that influence auditor's job satisfaction, the effects of job satisfaction on performance and turnover intentions, and how far the performances moderate the relationship between job satisfaction and turnover intention. The unit of analysis from this study is an auditor who works on a public accounting firm. Results showed that in small accounting firms, only consideration leadership style affects auditor's satisfaction, while in big accounting firms, leadership style and structure leadership style have affected auditor's satisfaction. Considerate Leadership style has higher effect than structural leadership style. For auditors in the big accounting firms, the higher the auditors position, the greater the desire to leave accounting firms, but the longer the experience of the auditors, the lower the desire to move from the accounting firms. In this case it is necessary to have periodic promotion policy in the accounting firms. Job satisfaction has a positive influence on performance on all types of the accounting firms. If auditors are satisfied with the work, then their turnover intentions will be low. If auditors have low job satisfaction, they will leave the accounting firms, no matter their performance level because they only consider the accounting firms as stepping stone for their next career. So firms must consider auditors' job satisfaction if they do not want to lose their auditors.
This paper examines the effect of audit tenure and audit rotation on audit quality. This study also examines whether this effect of the rotation is different between the Big 4 and non-Big 4 audit firm. This research was conducted in Indonesia, which is one of the few countries that not only implementing audit partner rotation but also mandatory audit firm rotation. However, in 2015, the mandatory audit firm rotation in Indonesia was abolished. The results show that the relationship between the tenure of auditor and audit quality is not significant. Audit firm rotation positively impacts audit quality, and the positive impact is lower in Big 4. In non-Big 4, audit partner rotation has no effect on audit quality, but audit firm rotation could improve audit quality. Meanwhile, in Big 4, audit partner rotation is sufficient to improve audit quality because they have sufficient partners to perform a quality review. From this study, the Indonesian government can consider the urgency to reimpose the mandatory audit firm's rotation or make a policy of the need to merge small non-Big 4 audit firms to increase the number of audit partners, and it will result in better inter-partner review processes to produce higher-quality audits.
This research aims to examine the effects of IFRS convergence, accounting complexity, and bankruptcy probability on timeliness and earnings management. This study is an empirical research of non-financial companies listed in the Indonesia Stock Exchange in the period of 2010-2011. Using multiple regression random effects, this study found that the convergence of IFRS which was effective in 2011, accounting complexity and bankruptcy probability extended audit delay and submission of financial statements. This study also found that the convergence of IFRS in 2011 and bankruptcy reduced the level of earnings management of the company. Accounting complexity, on the other hand, did not affect the level of earnings management.
Consensus about ownership concentration in Indonesian firms suggests that the agency problem in Indonesia is expected to be different from other countries. This study aims to review the impact of CEO career concerns on earnings management. The study uses the regression method with samples of CEOs of companies listed on the Indonesia Stock Exchange from 2012 to 2014. Newly appointed CEOs have been proved to use real and accruals earnings management to increase profits in the early period of their tenures, while CEOs leaving their posts use only real earning management to increasing earnings in the final year of their tenure. CEO career origin and shareholder affiliation have not been proved to effect newly appointed CEO's earnings-management activities. The study concludes there is a preference for CEOs to use real earnings management during their tenures and so the enforcement of regulations related to the disclosure of management career profiles is encouraged.
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