Auditor Switching: New Evidence from Indonesia

Abstract

The purpose of this research is to determine the direct influence of KAP size, company size, audit delay, audit tenure, previous year's audit opinion, opinion shopping, financial distress, audit fee, company growth on auditor switching as well as through going concern audit opinion as a mediating variable. The data used in this research are secondary data involving 104 manufacturing companies listed on the Indonesia Stock Exchange for the period 2013-2017. The data used in this study were analyzed using partial least square and carried out with the help of software WarpPLS 5.0. The results show that KAP size, company size, audit delay, audit tenure, financial distress has a negative effect on auditor switching. Previous year's audit opinion, opinion shopping, audit fee, company growth, going concern audit opinion has a positive effect on auditor switching. KAP size, company size, audit delay, audit tenure, previous year's audit opinion, audit fee has a negative effect on ongoing concern audit opinion. Opinion shopping, financial distress, company growth has a positive effect on ongoing concern audit opinion. The result also shows partial mediation of going concern audit opinion on impact KAP size, company size, audit delay, audit tenure, opinion shopping, financial distress, audit fee, company growth on auditor switching. Our findings provide new empirical evidence supporting the profession's arguments that mandatory audit partner rotation is costly to multiple stakeholders, including clients, auditors, and investors.

Pergantian Auditor Sebagai Upaya Menjaga Independensi

“…Hal ini umumnya disebabkan oleh tidak adanya kesepakatan biaya audit antara klien dan auditor (Arisinta, 2013). Penelitian terkait audit fee telah banyak dilakukan yang beberapa hasilnya menunjukkan adanya pengaruh antara audit fee terhadap pergantian auditor (Adli dan Suryani, 2019;Wati, 2020), tetapi berbeda hasil yang telah disebutkan sebelumnya dengan yang diungkap oleh Kholipah dan Suryandari (2019). Mereka mengungkapkan bahwa auditor switching tidak dipengaruhi oleh adanya audit fee.…”

“…Salah satu solusi yang digunakan untuk menjaga independensi dan kualitas auditor adalah melakukan pergantian auditor secara berkala Najwa dan Syofyan, 2020;Wati, 2020). Kegiatan penggantian auditor ini dapat dilakukan dengan dua cara yaitu secara mandatori dan voluntary.…”

“…Beberapa penelitian menunjukkan bahwa audit delay mempunyai pengaruh yang positif terhadap auditor switching (Arisudhana, 2017;Sari, Deviyanti dan Kusumawardani, 2018;Wati, 2020;Yanti dan Badera, 2018;Zikra dan Syofyan, 2019) H2: Audit delay berpengaruh positif terhadap auditor switching…”

Pergantian Kantor Akuntan Publik: Analisis Berdasarkan Pergantian CEO Dan Opini Audit Modifikasi

“…This can be the reason the company decides to switch Public Accounting Firm. Based on agency theory, management as an agent is assumed to have personal interests and wants to maximize their interests (Wati, 2020). The authority owned by management can be used to decide on the change of public accountants if the opinion obtained is not in accordance with the wishes of the management.…”

Audit Opinion and Audit Characteristic: Study of Voluntary Auditor Switching

“…On the other hand, the companies choose whether to keep the old auditor or change auditors. There are has a negative effect on auditor switching (Blankley, Hurtt and MacGregor, 2014;Whitworth and Lambert, 2014;Chan, Luo, and Mo, 2016;Dong, Robinson and Xu, 2018;Wati, 2020). Another factor is public accounting firm tenure.…”