Abstract
This study aims to examine the effect of the size of the public accounting firm, change in management, audit opinion, and financial distress on auditor switching at companies listed on the Indonesia Stock Exchange (IDX) selected by using the purposive sampling method. Secondary data used in this study were taken from published annual reports through documentation and literature study methods. Infrastructure, utility, and transportation sector companies are the population in this study. The total number of infrastructure, utility, and transportation sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2018 in 181 companies. However, the data sample used is as many as 39 companies with an observation time of three years (2016-2017) with a population of 117 companies according to the criteria in this study. Logistic regression analysis is an analytical technique used for this study assisted by Microsoft Excel 2013 and IMB SPSS Statistic 25. The results of the study indicate that the size of the public accounting firm, audit opinion, and financial distress did not have a significant effect on auditor switching. Meanwhile, management changes have a significant effect on auditor switching.
Highlights
Companies are required to publish their annual reports or financial reports that have been audited by an independent party each year if their shares have been listed on the Indonesia Stock Exchange (IDX)
The mean value shows -1.47 and the standard deviation value of this analysis is 26,427, which means it is greater than the value, namely -1.47, so it can be concluded that the financial distress (FD) data in this study have low distribution and fluctuation
This research aims to see the effect of public accounting firm size, management change, audit opinion, and financial distress on auditor switching
Summary
Companies are required to publish their annual reports or financial reports that have been audited by an independent party each year if their shares have been listed on the IDX. This is a form of company management responsibility to interested parties and to shareholders. Because in the financial statements there must be an explanation that can be used in making economic decisions and is a form of accountability from the manager during the implementation of company management that is entrusted to him. The attitude of independence means that auditors may not take sides or influence certain parties [10]
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