Pengaruh Opini Audit, Pergantian Manajemen dan Pertumbuhan Perusahaan Terhadap Auditor Switching Dengan Financial Distress Sebagai Variabel Moderasi (Studi Empiris pada Perusahaan Sektor Keuangan yang Terdaftar di Bursa Efek Indonesia Tahun 2017-2019)

Abstract

This research aims to analyze and obtain empirical evidence about the effect of audit opinion, management change and company growth on auditor switching with financial distress as a moderating variable. The population in this study were 90 financial sector companies listed on the Indonesia Stock Exchange for the 2017-2019 period. The sampling technique used purposive sampling, 42 samples were obtained for three years of observation to produce 126 units of analysis. The research data were obtained from audited financial statements, independent auditor's reports and the company's annual report downloaded from the website www.idx.co.id. The data analysis method uses descriptive statistical analysis, logistic regression analysis and Moderated Regression Analysis using SPSS version 22. The results of the study prove that simultaneous audit opinion, management change and company growth influence auditor switching. Partially the change of management and company growth has no effect on auditor switching. While audit opinion has a positive effect on auditor switching. Financial distress is able to moderate the change of management towards auditor switching, but it can’t moderate the relationship between audit opinion and company growth with auditor switching at financial sector companies listed on the Indonesia Stock Exchange in 2017-2019.

The The Influence of Management Change, Audit Opinion, and Audit Fee on Auditor Switching with Financial Distress as a Moderating Variable in Property and Real Estate Companies Listed on the Indonesia Stock Exchange

“…With the new management or CEO, company policies will also change, such as the accounting guidelines and the selection of auditors who comply with the new management guidelines. (Kaamilah et al, 2020). The conclusion from the above discussion is that financial distress is unable to moderate the influence of management change on auditor switching.…”

“…The change of auditor is because the company can no longer pay the company audit fee due to financial distress (Diandika and Badera, 2017). Research by Kaamilah et al, (2020) shows that financial distress can mitigate the impact of management change on auditor switching, but not the impact of an audit opinion on auditor switching. Meanwhile, Nasir (2018) shows that financial distress can mitigate the impact of audit fees on auditor switching, but not the impact of audit opinion and management change on auditor switching.…”

“…(Nasir, 2018). Kaamilah et al (2020) state that companies experiencing financial distress have management replace the auditor to obtain an audit opinion by management's wishes. Financial distress requires companies to obtain better opinions in order not to avoid unconditional opinions.…”

“…Suilowati (2014) in Nasir (2018). Companies experiencing financial difficulties will keep audit fees as low as possible, but will still seek quality auditors who can meet the needs of the company (Kaamilah et al, 2020). The change of auditor is because the company can no longer pay the company audit fee due to financial distress (Diandika and Badera, 2017).…”

“…The management change indicator is that companies that change management receive a score of 1 and companies that do not change management receive a score of 0 (Kaamilah et al, 2020). An audit opinion is measured by a client entity receiving other than an unqualified audit opinion and is assigned a value of 1, while a client entity receiving an unqualified audit opinion is assigned a value of 0 (Faradhillah and Abbas, 2022).…”