Abstract
This study aims to determine whether audit opinion, public accounting firm reputation, audit delay, and financial distress as moderating variables have an influence on auditor switching. The data used are companies in the manufacturing sector listed on the Indonesia Stock Exchange (IDX) in 2018-2020. The data obtained are in the form of financial statements, the sample selection process is carried out using purposive sampling, hypothesis testing in this study uses smart PLS. The results of the study indicate that audit opinion has a positive effect on auditor switching, while the audit delay variable, the reputation of a public accounting firm does not show an effect on auditor switching. Financial distress as a moderating variable is able to strengthen the relationship between audit opinion and auditor switching but is not able to moderate the relationship between audit delay and the reputation of public accounting firms to auditor switching. The contribution generated from this research is that the results of this research can increase public knowledge about the factors that cause auditor switching in manufacturing sector companies.
Highlights
IntroductionThe increasing development of public companies will have an impact on increasing the required accounting services
CONCLUSION, LIMITATION AND SUGGESTIONS This research is intended to determine the effect of audit opinion, public accounting firm reputation, audit delay and financial distress as moderating variable on auditor switching
From the overall processing of data analysis in this research, a conclusion as follows: Audit opinion has a positive effect on auditor switching
Summary
The increasing development of public companies will have an impact on increasing the required accounting services. The duty of the auditor is to be able to carry out his duties, functions and obligations optimally so that it will affect the results of the audit opinion expected by the client and of high quality so that it will be useful for the business world and the wider community. If this cannot be fulfilled by an auditor, the company will replace the auditor who is seen as having more independence and high credibility (Hidayat & Wahjoe, 2019). According to (Yanti & Wijaya, 2020) and Ishak et al (2010) companies that use the services of auditors will get a guarantee, namely a guarantee in the financial statements produced that the financial statements produced are relevant and reliable, so as to provide a high level of trust for all parties related to clients
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