Audit Tenure

This paper focuses on analyzing the effect of audit tenure on firm and audit partners on audit quality in non-financial publicly listed companies in Indonesia in the period of 2008 until 2014. The research is motivated by the inconsistent results of previous research in Indonesia and also in other countries. The audit quality is measured by the absolute discretionary accrual proxy using the Modified Jones model (1995). Fundamentally, audit quality describes the results of the performance of independent auditor which is one form of monitoring cost on agency theory. The results show the negative significant relationship between audit firm tenure to audit quality, in line with research from Junaidi et al. ( ), among others. On the other hand, there was no significant relationship between audit partner tenure and audit quality, similar to research from , among others. The result also supported by two types of robustness test. First, using the same model with different period has a negative significant result on audit firm tenure while there was no significant effect on audit partner tenure. Second robustness test using t-test for audit partner tenure on year 1 and 3, and the result shows there is no significant difference on audi t quality. The result will be useful as consideration for regulators to concern more to the effect of audit firm tenure compared to tenure partner.

This study aims to determine and analyze the effect of audit tenure, audit rotation, firm size and audit committee on audit quality with specialist auditors as moderating real estate & property companies listed on the Indonesia Stock Exchange. The results of this study prove that audit tenure has a negative and not significant effect on audit quality, while audit rotation has a negative and significant effect on audit quality, firm size has a positive and not significant effect on audit quality and audit committee has a positive and significant effect on audit quality. Specialist Auditors are not significant in moderating the effect of audit tenure, audit rotation, firm size and audit committee on audit quality.

This study aims to determine and analyze the effect of audit tenure, audit rotation, firm size and audit committee on audit quality with specialist auditors as moderating real estate & property companies listed on the Indonesia Stock Exchange. The results of this study prove that audit tenure has a negative and not significant effect on audit quality, while audit rotation has a negative and significant effect on audit quality, firm size has a positive and not significant effect on audit quality and audit committee has a positive and significant effect on audit quality. Specialist Auditors are not significant in moderating the effect of audit tenure, audit rotation, firm size and audit committee on audit quality.

This paper focuses on analyzing the effect of audit tenure on firm and audit partners on audit quality in non-financial publicly listed companies in Indonesia in the period of 2008 until 2014. The research is motivated by the inconsistent results of previous research in Indonesia and also in other countries. The audit quality is measured by the absolute discretionary accrual proxy using the Modified Jones model (1995). Fundamentally, audit quality describes the results of the performance of independent auditor which is one form of monitoring cost on agency theory. The results show the negative significant relationship between audit firm tenure to audit quality, in line with research from Junaidi et al. (2012), among others. On the other hand, there was no significant relationship between audit partner tenure and audit quality, similar to research from Blandon & Bosch (2017), among others. The result also supported by two types of robustness test. First, using the same model with different period has a negative significant result on audit firm tenure while there was no significant effect on audit partner tenure. Second robustness test using t-test for audit partner tenure on year 1 and 3, and the result shows there is no significant difference on audi t quality. The result will be useful as consideration for regulators to concern more to the effect of audit firm tenure compared to tenure partner.

The purpose of this study was to determine and obtain empirical evidence about the effect of auditor rotation, time pressure, and audit tenure on audit quality with auditor specialization as a moderating variable. This research was conducted at manufacturing companies listed on the Indonesia Stock Exchange in 2014-2018. The number of samples is 81 companies with the number of observations as many as 405 samples in 5 years, through the nonprobability method with a purposive sampling technique. This research analysis technique uses Moderate Regression Analysis (MRA). Based on the results of the analysis found that audit rotation does not affect audit quality. Time pressure influences audit quality. Audit tenure affects audit quality. The auditor's specialization does not affect audit quality.

Penelitian ini bertujuan untuk mengetahui pengaruh fee audit, audit tenure, dan rotasi audit terhadap kualitas audit. Populasi dalam penelitian ini adalah seluruh perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia sedangkan sampel penelitian ini adalah 91 perusahaan manufaktur yang memenuhi kriteria sampel selama periode penelitian. Teknik pengambilan sampel dalam penelitian ini menggunakan metode purposive sampling. Metode analisis data yang digunakan dalam penelitian ini adalah analisis regresi logistik. Data yang digunakan dalam penelitian ini adalah data sekunder berupa laporan keuangan tahunan perusahaan yang diakses melalui situs resmi Bursa Efek Indonesia (BEI) dan situs resmi masing-masing perusahaan sampel yang dikumpulkan dengan metode dokumentasi dan dianalisis dengan aplikasi program SPSS 25. Hasil penelitian menunjukkan bahwa fee audit berpengaruh positif signifikan terhadap kualitas audit, audit tenure tidak berpengaruh signifikan terhadap kualitas audit, dan...

Diajukan sebagai salah satu syarat untuk menyelesaikan Program Sarjana (S1) pada Program Sarjana Fakultas Ekonomika dan Bisnis Universitas Diponegoro Disusun oleh: DEWI FATMAWATI NIM. C2C009151 FAKULTAS EKONOMIKA DAN BISNIS UNIVERSITAS DIPONEGORO SEMARANG 2013 v MOTTO DAN PERSEMBAHAN Datangnya kesulitan bersamaan dengan kemudahan.

Purpose The purpose of this paper is to investigate the association between audit rotation – at the audit partner and audit firm level – and audit quality. As mentioned in the literature, audit rotation has several benefits, and one of them is it can bring a fresh look to audit tasks and subsequently improve audit quality. Moreover, audit itself can help a client to improve its financial reporting. However, ineffective communication between predecessor and successor audit partners or audit firms, and pseudo-rotation can hamper that benefit. Design/methodology/approach This study uses multivariate regression analysis to test its hypotheses. Using data from companies listed on the Indonesia Stock Exchange, the sample consists of 688 company-year observations covering the period 2003–2016. Findings This study finds that the cumulative number of audit partner rotations is positively associated with audit quality, indicating that rotations at the audit partner level will enhance audit qu...

Penelitian ini bertujuan untuk menguji apakah pengaruh ukuran perusahaan, umur perusahaan, dan opini auditor terhadap audit delay pada perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia (BEI). Penelitian ini menggunakan jenis deskriptif dengan pendekatan kausal komparatif (sebab-akibat), yamg diukur menggunakan metode berbasis regresi linier berganda dengan SPSS 23. Populasi dari penelitian ini adalah perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia tahun 2013 sampai dengan tahun 2015. Sampel ditentukan berdasarkan metode purposive sampling, dengan jumlah sampel sebanyak 15 perusahaan pertambangan sehingga total observasi dalam penelitian ini sebanyak 45 observasi. Data yang digunakan dalam penelitian ini berupa data sekunder. Teknik pengumpulan data menggunakan metode dokumentasi melalui situs resmi IDX : www.idx.co.id pengujian hipotesis dengan menggunakan uji t. Hasil penelitian membuktikan bahwa (1) ukuran perusahaan berpengaruh terhadap audit delay pad...

This study aims to empirically examine the effect of audit fees on audit quality, the effect of audit tenure on audit quality, the effect of audit rotation on audit quality, and the effect of auditor reputation on audit quality. The population of this study is property and real estate companies listed on the Indonesia Stock Exchange (IDX) in 2013-2017. The research sampling technique used purposive sampling. The research samples obtained were as many as 25 property and real estate companies in 2013-2017. The analytical method used is logistic regression analysis. The results based on partial hypothesis testing indicate that audit fees affect audit quality and audit tenure affect audit quality. While audit rotation does not affect audit quality and auditor reputation does not affect audit quality. Keywords: Audit Quality, Audit Fee, Audit Tenure, Audit Rotation and Auditor Reputation

Audit quality is the probability of where an auditor discovered and reported on the existence of a breach in the accounting system auditenya. As a proxy for audit quality, the CPA firm size is frequently associated with the company's reputation. In this case, the reputation associated with its clients and resources, both human resources and wealth (assets). So that his reputation has also been considered both by the people and causes they will conduct an audit to be more careful. On the other hand, audit fees as a proxy for audit quality will depend on several factors in audit engagement, namely: financial of clients, the size of its client's company, CPA firm size, expertise of the auditor of the industry, and the efficiency of the technology owned by the auditor. Larger audit firm are likely to cost higher fees. In this case, the premium fee which earned by a larger CPA firm size, such as The Big Four, is on 20% higher than a small CPA firm size. Many studies have shown empirical evidence that these two proxies, Firm size and audit fees, has delivered a quality audit. On one hand, a larger CPA firm size is likely will result in a higher quality audit than a small CPA firms size. This is because a larger CPA firm size has the resources of the more experienced and more loyal to his work. On the other hand, a higher audit fees is also tend to produce higher quality audit results as well. This may be caused due to the high quality of the auditor who owned by larger CPA firm size in auditing activities. As result, a high quality auditor who owned by larger CPA firm size has resulted in the higher perception of ability and experience of auditing as well. Furthermore, as larger CPA firm size has allocated more funds for their auditors, the auditors also have the ability to improve the quality of their performance.

This study investigates the effect a regime of mandatory audit firm rotation would have on audit quality in an Australian setting. Using two measures of audit quality, being the propensity to issue a going-concern report and the level of discretionary accruals, the study examines the switching patterns of clients in their current voluntary switching capacity, and the levels of audit quality. We find that audit quality increases with audit firm tenure, when proxied by the propensity to issue a going concern opinion, and is unaffected when proxied by the level of discretionary accruals. We conclude that given the additional costs associated with switching auditors there are minimal, if any, benefits of mandatory audit firm rotation. Other initiatives to address concerns about auditor independence and audit quality therefore need be considered before imposing mandatory audit firm rotation.

This study discusses and understands the competence and independence of auditors on audit quality in sharia banking in Indonesia. While in the discussion the authors analyze the things that are deemed related to the competence and independent audit of auditor tenure or rotation seen through two post-KMK regime and post Act No. 5, Audit firm reputation by looking at audit firm size, audit fees, and auditor competencies determined through background education, certification, experience of work, and frequency of training that followed. The result of the research shows that the limitation of audit tenure does not decrease the quality of audit in sharia banking, the dynamics of audit quality is formed from independent relationship and auditor competence depends on the maximum level of audit

Tujuan Penelitian ini untuk mengatahui pengaruh Ukuran Perusahaan dan Ukuran Kantor Akuntan Publik (KAP) Terhadap Fee Audit pada Perusahaan yang Terdaftar Di Bursa Efek Indonesia. Variabel pada penelitian ini adalah Ukuran Perusahaan dan Ukuran Kantor Akuntan Publik (KAP) sebagai Variabel Independen dan Variabel Fee Audit sebagai Variabel Dependen.Populasi pada penelitian ini adalah semua perusahaan yang terdaftar di Bursa Efek Indonesia tahun 2017- 2019. Pengambilan sampel dilakukan dengan metode purposive sampling, sampel yang digunakan 14 perusahaan dengan 42 sampel selama tiga tahun penelitian. Metode analisis yang digunakan untuk menguji pengaruh variabel indenpenden terhadap variabel dependen adalah analisis regresi berganda. Hasil Penelitian menunjukkan bahwa Ukuran Perusahaan Berpengaruh secara Positif terhadap Fee Audit, Sedangkan Ukuran KAP tidak berpengaruh terhadap Fee Audit.

This research is to examine and provide empirical evidence that the factor of expertise, experience, professional skepticism of auditors and audit situations has no effect or no relevance to the provision of audit opinion on the financial statements of the entity. This research was conducted using the sampling method, namely purposive sampling, with the type of quantitative research. The data was analyzed using multiple regression analysis models. Hypothesis testing is done to determine the extent of expertise, experience, professional skepticism of auditors and audit situations affect the relevance of the provision of audit opinion on the financial statements of entities either partially or simultaneously.

Dalam penelitian sebelumnya atau penelitian yang relevan, itu memainkan peran penting dalam penelitian atau penelitian. Penelitian sebelumnya dan penelitian yang relevan harus berfungsi sebagai teori konfirmasi jika terjadi hubungan, yaitu efek antar variabel. Pada artikel ini meriview bagaimana pengaruh yang biasanya mempengaruhi sebuah fungsi dari audit internal diantaranya: Audit Tenure, Ukuran Perusahaan, serta Rotasi Audit. Tujuan atas penulisan artikel ini agar dapat membangun sebuah hipotesis pengaruh antar sebuah variabel agar dapat digunakan untuk penelitian selanjutnya. Artikel riview ini menghasilkan diantaranya: 1) Audit Tenure tidak berpengaruh terhadap kualitas audit; 2) Ukuran Perusahaan tidak berpengaruh terhadap kualitas audit; 3) Rotasi Audit tidak berpengaruh terhadap kualitas audit.

Tujuan dari riset ini ialah sebagai alat dalam mengukur tingkat kepengaruhan seorang auditor, rotasi auditor, serta ukuran perusahaan jika dihadapi dengan kualitas pada audit yang ada dalam perusahaan  manufaktur yang sebelumnya telah didaftarkan di dalam Bursa Efek Indonesia. Bahan untuk riset diambil berdasarkan sebuah laporan keuangan dan juga tahunan dari perusahaan di website Bursa Efek Indonesia. Dalam riset dipergunakan contoh 54 perusahaan dari periode 2017-2020. Metode sampling merupakan salah satu metode riset yang diterapkan dalam riset ini. Data sekunder kuantitatif ialah jenis yang dipergunakan. Kemudian, salah satu teknik yang dipergunakan ialah analisis regresi berganda. Sehinga dari riset yang sudah dilakukan bisa diambil sebuah kesimpulan bahwasannya masa kerja auditor merupakan salah satu hal negatif yang ditimbulkan terhadap tingkat kualitas audit, rotasi audit tidak berpengaruh terhadap mutu audit, dan ukuran perusahaan yang positif terhadap kualitas audit.

This research is to examine and provide empirical evidence that the factor of expertise, experience, professional skepticism of auditors and audit situations has no effect or no relevance to the provision of audit opinion on the financial statements of the entity. This research was conducted using the sampling method, namely purposive sampling, with the type of quantitative research. The data was analyzed using multiple regression analysis models. Hypothesis testing is done to determine the extent of expertise, experience, professional skepticism of auditors and audit situations affect the relevance of the provision of audit opinion on the financial statements of entities either partially or simultaneously.

Changes in world oil prices are a things that must be considered, because they can affect the selling price of crude oil and the profits to be obtained. Apart from that, the rupiah exchange rate against the US dollar is also one thing that needs attention. These conditions become one of the considerations for investors whether the results of the investment can provide profits or have a loss. One of the problems that must be considered is financial distress. The aims of this research is to use the Springate method to analyze the potential for bankruptcy in oil and gas subsector companies. This research uses a quantitative descriptive approach and data collection uses documentation techniques by taking secondary data from the website of the Indonesia Stock Exchange. The sample was selected using certain sampling criteria, so that the sample in this study amounted to 10 companies. The results of the analysis of potential bankruptcy using the springate method in 2018 to 2020 show that t...

This study aims to empirically examine the effect of audit fees on audit quality, the effect of audit tenure on audit quality, the effect of audit rotation on audit quality, and the effect of auditor reputation on audit quality. The population of this study is property and real estate companies listed on the Indonesia Stock Exchange (IDX) in 2013-2017. The research sampling technique used purposive sampling. The research samples obtained were as many as 25 property and real estate companies in 2013-2017. The analytical method used is logistic regression analysis. The results based on partial hypothesis testing indicate that audit fees affect audit quality and audit tenure affect audit quality. While audit rotation does not affect audit quality and auditor reputation does not affect audit quality. Keywords: Audit Quality, Audit Fee, Audit Tenure, Audit Rotation and Auditor Reputation

Penelitian ini bertujuan untuk menguji pengaruh tenur auditpartner, tenur audit KAP, rotasi audit partner, dan rotasi audit KAP terhadap kualitas audit pada badan usaha sektor manufaktur yang terdaftar di Bursa Efek Indonesia periode 2012-2014. Pengambilan sampel dari populasi penelitian ini menggunakan metode purposive sampling. Dari metode tersebut, diperoleh sampel penelitian sebanyak 264 badan usaha sektor manufaktur. Model analisis data yang digunakan dalam penelitian ini adalah statistik deskriptif dan regresi linier berganda, dengan menggunakan variabel dummy untuk mengukur variabel rotasi audit partner, rotasi audit KAP, ukuran KAP, dan spesialisasi auditor. Variabel spesialisasi auditor diukur berdasarkan pangsa pasar yang dihitung berdasarkan total aset untuk menentukan termasuk auditor spesialisas atau non-spesialis. Proksi kualitas audit diukur dengan menggunakan nilai absolut dari diskresionari akrual model Kasznik (1999). Hasil penelitian menunjukkan bahwa tenur auditp...

The purpose of this research was to analyze the influence of audit fee, audit switching and audit firm reputation on audit quality. The proxy of audit quality is using discretionary accrual Modified Jones model (1994). Data in the current research were secondary data obtained from the financial statements of property, real estate and construction companies listed on the Indonesia Stock Exchange during 2014-2016. Fourty-four (n = 44) companies was selected using the purposive sampling method as the sample of the current study (N=132). Data was analyze during the multiple regression analysis. The resulted showed that audit fee, audit switching and audit firm reputation has positive significant effects on audit quality.

This study aimed to assess the impact of auditor rotation and auditor quality on audit delay for food and beverage sub-sector mining firms listed on the Indonesia Stock Exchange for the period of 2018-2021. The scope of study is scheduled for the years 2018-2021. This inquiry employs descriptive and associative techniques. The sample consisted of twenty businesses that satisfied the criteria for twenty-six samples gathered using the method of purposive sampling; hence, the total number of samples evaluated was eighty pieces of data. In this study, descriptive statistical analysis, classical assumption testing, multiple linear regression, hypothesis testing, and the calculation of the coefficient of determination are employed as methods of analysis. There are suggestions, based on the research findings, that auditor rotation has a major impact on audit delay, although auditor competency does not play a significant role in tax evasion. Food and beverage companies listed on the Indonesian Stock Exchange are susceptible to audit delays for a variety of reasons, including auditor rotation, auditor quality, and all of these difficulties together.

ABSTRAK Muhamad Rifai. 4315500094. 2019. “Pengaruh Audit Tenure, Audit fee, Rotasi KAP Dan Ukuran KAP Terhadap Kualitas Audit pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2018”. Skripsi Program Studi Akuntansi. Fakultas Ekonomi dan Bisnis. Universitas Pancasakti Tegal. Penelitian ini bertujuan untuk mengetahui pengaruh Audit Tenure, Audit fee, Rotasi KAP Dan Ukuran KAP Terhadap Kualitas Audit pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2018. Jenis penelitian yang digunakan adalah penelitian kuantitatif. Data yang digunakan adalah data sekunder. Populasi sebanyak sebanyak 49 perusahaan dan teknik pengambilan sampel mengunakan metode purposive sampling. Diperoleh sampel sejumlah 21 perusahaan x 3 tahun = 63 data laporan keuangan. Analisis yang digunakan metode analisis uji statistik deskriptif , analisis regresi logistik, pengujian hipotesis dan koefisien de...

This study aims to examine the empirical facts of the two theories that are used side by side, namely agency theory and positive accounting theory within the scope of the problem that is based on the influence of audit quality on disclosure of fraudulent investor financial and perspective reports. This study uses secondary data sources originating from IDX and literature. The analysis tool used to test the relationship between variables is multiple regression where the results of this study show two proofs that audit quality has a positive effect on the level of investor perceptions as measured by the cost of equity capital but conversely audit quality does not significantly influence earnings management. this can be interpreted that high audit quality can increase investor confidence so that it has an impact on the high cost of equity capital but high audit quality does not have a significant impact on earnings management practices. Keywords : AuditQuality, audit tenure, the cost o...

Permasalahan mengenai kualitas audit akhir-akhir ini menjadi sorotan dimasyarakat. Hal ini diakibatkan salah satunya karena keterlibatan dari akuntan publik didalamnya. Artikel ini mereview pengaruh dari rotasi KAP, ukuran perusahaan dan profesionalisme dari auditor terhadap kualitas audit. Tujuan dari penulisan artikel ini guna membangun hipotesis pengaruh antar variabel untuk digunakan pada riset selanjutnya. Adapun hasil dari artikel literature review ini adalah:  1) rotasi KAP bepengaruh terhadap kualitas audit; 2) ukuran perusahaan berpengaruh terhadap kualitas audit; dan 3) profesionalisme berpengaruh terhadap kualitas audit.

This study examines the effect of the number of clients and complexity on audit quality at the audit engagement partner (AEP) and public accounting firm (PAF) levels. We use discretionary accrual and real activities manipulation models to assess the audit quality at the AEP and PAF levels. Our study examines 506 firm-year observations as our sample for the companies in the industrial sector listed on the Indonesian Stock Exchange. Using multiple linear regressions and controlling for year and industry fixed effects, our study discovered that the client complexity handled by AEPs is associated with the declining audit quality of AEPs using discretionary accruals. However, our study discovered no relationship between the number of clients at the AEP and PAF levels, and client complexity at the PAF level that influences the audit quality. Thus, the findings of our study suggest to standard setters, capital market participants, and other stakeholders that audit quality at the AEP level ...

This study aims to examine the effect of audit fees, audit rotation, auditor reputation and auditor specialization on audit quality in transportation sub-sector companies listed on the Indonesian stock exchange in 2018 to 2021. The population in this study was 47 transportation sub-sector companies that listed on the Indonesian stock exchange from 2018 to 2021. Sampling uses purposive sampling, namely sampling by setting certain criteria. Based on the criteria that have been set so that a sample of data is obtained as many as 29 companies in the transportation sub-sector for an observation period of four years, a sample of 116 data is obtained. In this study, the data analysis used was descriptive statistical analysis and logistic regression analysis. The results of this study indicate that audit fees have a significant and positive effect on the audit quality of transportation sub-sector companies listed on the Indonesian stock exchange in 2018 to 2021. While audit rotation, audito...

This study aims to analyze and provide empirical evidence about the effect of liquidity, leverage, profitability, audit tenure, audit lag, and audit quality on the going concern audit opinion on manufacturing companies listed on the Indonesia Stock Exchange between 2015 and 2019. The population in this study are all manufacturing companies listed on the Indonesia Stock Exchange (IDX) with the total of 176 companies. The determination of the sample uses purposive sampling which leave 20 manufacturing companies that meet the criteria. In this research, the data analysis method used is the logistic regression analysis method because there are dummy variables on the dependent and independent variables. The results of this study indicate that liquidity and profitability have a negative effect, and audit lag has a positive effect on the acceptance of going concern audit opinion. While the variable leverage, audit tenure, and audit quality does not affect the going concern audit opinion.

The objectives of this research are twofold, to test the audit quality of companies that change their auditors either voluntarily or mandatorily and to test the financial characteristics as a factor for an accounting firm to engage in pseudo mandatory rotation. Since 2002, Indonesia has had legislation mandating companies to rotate their auditor after six years of consecutive engagements (five years prior to 2008). However, auditors sometimes seem to find their own way to deceive the mandatory regulation by a tactic called "pseudo" mandatory rotation. Thus, we divide mandatory rotation into two categories, pure and pseudo mandatory rotation. The results of the data we collected since the Ministerial decree became effective in 2003 indicate companies that rotate their auditors mandatorily have higher audit quality than that of companies voluntarily rotating auditors. However, we cannot find evidence that pseudo and pure mandatory rotation have different audit qualities. The results also indicate that switching among bigger accounting firms have the highest audit quality rather than switching between smaller audit firms which have lower audit quality. Lastly, the motives of an accounting firm to engage in pseudo or pure mandatory rotation are related to the financial size of their clients. Future research must consider the limitation stated in this study.

Going-concern opinion is an auditor's opinion based on the client's financial statements, which have financial problems. The company avoids this opinion because it will significantly affect the attitude of investors in the future. This study analyzes various factors that potentially affect the provision of going-concern audit opinions in Indonesia Stock Exchange (IDX) manufacturing companies during 2017-2019. They are audit tenure, company size, opinion shopping, and audit report lag. The results show that audit tenure, company size, and opinion shopping significantly negatively impact the acceptance of going-concern audit opinion. In contrast, audit report lag is not related to the acceptance of going-concern audit opinion. These research findings indicate that investors should not use the delay of financial statement issuance to the public as a benchmark for a company experiencing financial or operational problems.

This study examines the effect of the number of clients and complexity on audit quality at the audit engagement partner (AEP) and public accounting firm (PAF) levels. We use discretionary accrual and real activities manipulation models to assess the audit quality at the AEP and PAF levels. Our study examines 506 firm-year observations as our sample for the companies in the industrial sector listed on the Indonesian Stock Exchange. Using multiple linear regressions and controlling for year and industry fixed effects, our study discovered that the client complexity handled by AEPs is associated with the declining audit quality of AEPs using discretionary accruals. However, our study discovered no relationship between the number of clients at the AEP and PAF levels, and client complexity at the PAF level that influences the audit quality. Thus, the findings of our study suggest to standard setters, capital market participants, and other stakeholders that audit quality at the AEP level ...

This research was conducted to investigate the impact of implementation of SA 600 on shifting of audit clients and reducing of audit quality in Indonesia. SA 600 was issued in 2013 in order to mitigate the problem of audit failure in group entities where the group auditor is responsible for the entire audit process, particularly the audit quality in component entities or subsidiaries. In its implementation, SA 600 has received several complaints related to audit quality and shifting of audit clients. The research method is using primary data from questionnaires that was distributed to auditors and focus group discussions with auditors and users. The respondents of this research are 367 auditors of which 63% were audit partners. This research found that SA 600 can improve audit quality when its implementation is carried out according to audit standards. However, the implementation of SA 600 has an impact on the shifting of component or subsidiary company clients which move to the gro...

This research aims to determine the influence of solvency, growth of the company, and profit management on the going concern audit opinions. The study used the analysis of the confirmatory factor to test the correlation between variables and logistical regression analyses to test the hypothesis. The selected sample in this study is a service company with the transportation sub-sector listed on the Indonesia Stock Exchange (IDX) in 2014-2018 with purposive sampling technique. The results of this study show that (1) solvency affects the going concern audit opinion, (2) The company growth does not affect the going concern audit opinion, (3) Earnings management does not affect the going concern audit opinion.

Penelitian ini bertujuan untuk mengetahui pengaruh fee audit, audit tenure, dan rotasi audit terhadap kualitas audit. Populasi dalam penelitian ini adalah seluruh perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia sedangkan sampel penelitian ini adalah 91 perusahaan manufaktur yang memenuhi kriteria sampel selama periode penelitian. Teknik pengambilan sampel dalam penelitian ini menggunakan metode purposive sampling. Metode analisis data yang digunakan dalam penelitian ini adalah analisis regresi logistik. Data yang digunakan dalam penelitian ini adalah data sekunder berupa laporan keuangan tahunan perusahaan yang diakses melalui situs resmi Bursa Efek Indonesia (BEI) dan situs resmi masing-masing perusahaan sampel yang dikumpulkan dengan metode dokumentasi dan dianalisis dengan aplikasi program SPSS 25. Hasil penelitian menunjukkan bahwa fee audit berpengaruh positif signifikan terhadap kualitas audit, audit tenure tidak berpengaruh signifikan terhadap kualitas audit, dan...

Bu calismanin amaci, gonullu denetim kurulusu degisikliklerinin bagimsiz denetim  kalitesi uzerindeki etkilerini incelemektir. Bagimsiz denetim kalitesinin gostergesi olarak ihtiyari  tahakkuklarin kullanildigi calisma, 2011-2016 yillari arasinda Borsa Istanbul’da (BIST) islem  goren imalat sanayi sirketleri ornekleminde en kucuk kareler regresyon yontemi kullanilarak  gerceklestirilmistir. Arastirmanin temel sonucu, gonullu denetim kurulusu degisikliginin  denetim kalitesini negatif olarak etkiledigini gostermistir. Ayrica, gonullu degisiklik sonrasinda,  hem 4 buyuklerce hem de 4 buyukler disindakilerce denetlenen sirketlerde, pozitif ihtiyari  tahakkuklarda artis ve dolayisiyla denetim kalitesinde dusus gerceklesmistir. Diger taraftan, 4  buyuklerden 4 buyuklere gonullu denetim kurulusu degisikliginde, denetim kalitesinde artis;  diger denetim kuruluslarindan 4 buyuklere gonullu denetim kurulusu degisikligi durumunda ise  denetim kalitesinde azalis gorulmustur.

This paper investigates the decline in audit quality during an audit firm's tenure across countries with varying degrees of legal liability. We propose that audit quality can increase through a learning effect in early years but in later years it is likely to decrease due to a bonding effect. Using a quadratic model, we estimate the year when audit quality, measured by earnings quality, starts to decline during an audit firm's tenure. We propose that the bonding effect should be weaker in countries with stricter legal liability regimes, which implies that the year that audit quality begins to decline should be later in countries with stricter legal liability regimes. We find that it takes 14 to 16 years for countries with stronger legal liability regimes while it only takes 4 to 10 years for countries with weaker legal liability regimes for audit quality to decline. Our results are strong regardless of whether we measure legal liability from the perspective of legal origin (common or code law) or litigation risk. Our findings have implications across the world for the current debate on the mandatory requirement of audit firm rotation across the world.

The aimed of this research was to examine the influence of corporate governance and auditor quality on earnings management in islamic banks in Indonesia. Corporate governance in this research used the size of audit committee, the size of Shariah Supervisory Board  and managerial ownership as a proxy. Auditor quality in this research used accountant firm size as a proxy. The type of this research was explanatory research. The population were islamic banks listed in Bank Indonesia during 2013-2018. Using purposive sampling method, the sample were 60 islamic banks in Indonesia. Data resource using annual report from each islamic banks. The analysis method using multiple linear regression. The result indicated that managerial ownership had positive influence on earnings management, meanwhile the size of audit committee, the size of SSB, and auditor quality had no influence on earnings management. Keywords: auditor quality, corporate governance, earnings management, islamic banks  

This study aims to examine audit tenure and audit quality in influencing audit delay in crude oil and gas sub-sector companies listed on the Indonesia Stock Exchange, using a period of 4 years (2017-2020). Observation data were 44 samples from 11 companies which were obtained using purposive sampling method. The analytical methods used are descriptive quantitative, normality test, multicollinearity test, heteroscedasticity test, autocorrelation test, partial, t test, multiple linear regression and F test. The results of the analysis of this study indicate that audit tenure has no significant effect on audit delay and audit quality has no significant effect on audit delay. The results of all the variables studied are that there is no significant effect between audit period and audit quality on audit delay in oil and gas sub-sector companies listed on the Indonesia Stock Exchange in 2017-2020.This study aims to examine audit tenure and audit quality in influencing audit delay in crude...

Objective - This study aims to explain the companies' financial condition and growth which is affecting going concern audit opinion of the companies listed in the Jakarta Islamic Index (JII). Financial condition is examined through the information changes in working capital to total assets, retained earnings to total assets, earnings before interest and taxes to total assets, book value of equity to book value of total liabilities, sales to total assets. Methodology/Technique - This study applies qualitative research with a description method and the populations used are all companies listed in JII period 2014-2015. Findings - The results of the study explained that the companies' financial conditions affect going concern audit opinion. The worse the financial condition of the company, the greater the probability of companies to receive going concern audit opinion, and vice versa. An auditor will give a going concern audit opinion on companies that are experiencing financial...

The objective of this research is to analyze the effect of rotation of audit firm (KAP) and rotation audit partner (PA) on the audit quality. Audit quality is measured using discretionary accruals. This research is based on previous research conducted by Siregar et al (2011). The sample of this research was manufacturing company which listed on the Indonesian Stock Exchange (BEI) in the year 2010 to 2013. Data were collected by using purposive sampling method and 298 observation data were analyzed. This study utilized linier regression as a main analysis tool. The results of multiple regression analysis show that the rotation of audit firm has a significant positive effect on audit quality. While, the rotation of auditor partner has no a significant effect on audit quality.

The taxonomy established by Wagner and Keynes on the effect of government expenditure on economic growth has continued to generate a series of empirical studies but so far no consensus has been achieved on the exact nexus between deficit financing and economic growth and when interacting with inflation variable. The study contributed to this debate by using the disaggregated Vector Autoregression (VAR) approach to investigate the impact of deficit financing on economic growth with inflation as an interaction variable. The study found, amongst others, that overall deficit financing had a positive and significant impact on economic growth when financed through external sources but had a deleterious effect when financed through domestic sources. This could be attributed to the crowding-out effect of the private sector when deficit financing is funded through the domestic loan market. The study also found that overall deficit financing is inflationary which also resulted in to decrease ...

This study aims to find out and analyze the existence of earnings management in the financial statements of the Property and Real Estate companies listed on the Indonesia Stock Exchange in 2014-2016. The data in this study are secondary data obtained from the official website of the Indonesia Stock Exchange. The company that was the object of research was 7 out of 48 companies. The technique of collecting data uses documentation studies by means of secondary data collection obtained from the official website of the Indonesia Stock Exchange. The results showed that 7 companies that were the object of research mostly carried out earnings management by increasing company profits. This shows that there are still many companies that choose to increase profits to get bigger results

The purpose of this study was to determine whether there was a significant effect on the proportion of independent audit committees, audit tenure and the proportion of managerial ownership on earnings management partially and simultaneously. The variables studied were variable proportion of independent audit committees, audit tenure and the proportion of managerial ownership as independent variables and earnings management (discretionary accruals as the measurement) as the dependent variable. This study used secondary data from banking companies listed in Indonesia Stock Exchange. The sample were obtained using purposive sampling method with a sample of banking companies with a three year period. The data processed using SPSS. The results of this study shown that the proportion of independent audit committees, audit tenure and the proportion of managerial ownership partially and simultaneously no significant effect on earnings management. The proportion of independent audit committees and the proportion of managerial ownership had a negative influence on the direction of earnings management, while audit tenure had a positive influence direction. The negative influence shown when the higher level of the proportion of independent audit committees and the proportion of managerial ownership it will decrease the earnings management. The positive influence shown when audit tenure taken longer it will increase earnings management.

This study aims to analyze and provide empirical evidence about the effect of liquidity, leverage, profitability, audit tenure, audit lag, and audit quality on the going concern audit opinion on manufacturing companies listed on the Indonesia Stock Exchange between 2015 and 2019. The population in this study are all manufacturing companies listed on the Indonesia Stock Exchange (IDX) with the total of 176 companies. The determination of the sample uses purposive sampling which leave 20 manufacturing companies that meet the criteria. In this research, the data analysis method used is the logistic regression analysis method because there are dummy variables on the dependent and independent variables. The results of this study indicate that liquidity and profitability have a negative effect, and audit lag has a positive effect on the acceptance of going concern audit opinion. While the variable leverage, audit tenure, and audit quality does not affect the going concern audit opinion.

Financial statements are source of information for investors in determining which companies to invest in. Therefore, the reliability of financial statements has an important role. In order for financial reports to be reliable, there are two important things, namely reporting quality and earning quality factors. The auditor gives a fair opinion as a form of reporting quality. Thus, the going concern opinion is one of the opinions given by the auditor on earning quality. This study tries to examine what factors encourage the auditor to give going concern opinion to the company. The method used is a quantitative method using inferential statistics. In particular, the instrument used is logistic regression. The findings of this study are that companies that tend to get a going concern opinion have certain characteristics, among others, are large companies that have profits and have a fairly high level of debt. This finding can then be used by investors to identify companies that have th...

This study investigates and analyzes the difference in Indonesian banks' earnings quality in the pre-audit and post-audit period. This study also investigates the difference in audit quality done by public accounting firms. This study employs time series data taken from the unaudited and audited financial statements of banks listed on the Indonesia Stock Exchange in 2012-2016. Sample selection is made by using a purposive sampling method. The population of this study is 43 banks, and after checking the data for validity and reliability, the final sample size was 26 banks. Audit quality is operationalized with the size of the auditor. Earnings quality is proxied by accruals calculated using the model. The data analysis method used in this study is the paired-sample t-test and chow test. This study shows that there is no difference in earnings quality in the pre-audit and post-audit period. This study also reveals no difference in audit quality between the big four and non-big four auditors. These findings mean that independent auditors do not play a useful role in increasing the reliability of accounting information presented by management to stakeholders. Besides, this study's results do not verify the agency theory regarding auditors' role to minimize opportunistic management behavior in preparing financial statements.

This study aims to analyze the influence of audit tenure, audit delay, corporate growth, profitability, leverage, and financial distress toward acceptance of going concern audit opinion. The research used manufacturing companies listed on the Indonesia Stock Exchange in 2015-2017 and obtained samples of 34 companies and 102 data to be observed for three years of the research period. This study utilized the statistical analysis technique of logistic regression. The results suggested that the variables of audit tenure, audit delay, corporate growth, and financial distress had no significant effect on the acceptance of going concern audit opinion. Instead, profitability and leverage variables significantly affected the acceptance of going concern audit opinion.

In this study, we examine the effect of financial ratios, prior audit opinion and growth on the auditor's going-concern opinion. The study conducted on 52 from 146 issuers listed maanufacturing companies in Indonesia Stock Exchange, selected through purposive sampling technique that is consistent with the criteria listed there since 2007 until 2010, and also has a comprehensive financial reporting data. The statistical methods used to test the hypothesis carried out by multivariate analysis using logistic regression models. The result showed that only the prior year's audit opinion that have statistically significant effect on the going concern opinion.