Audit Tenure Research Articles

The Effect of Tax Avoidance, Tax Risk, Audit Tenure, on Firm Value Through Financial Performance

The Effect of Tax Avoidance, Tax Risk, Audit Tenure, on Firm Value Through Financial Performance

The Influence of Audit Tenure, Audit Rotation, Public Accounting Firm Size, and Audit Opinion on Audit Quality (Study of Large Trading Companies Listed on the Indonesian Stock Exchange)

The purpose of this study was to examine the Influence of audit tenure, audit rotation, size of the public accounting firm (KAP), and audit opinion on audit quality. This research data analysis method uses quantitative analysis techniques and purposive sampling, namely determining the research sample using 20 out of 47 samples of large trading companies listed on the Indonesia Stock Exchange (BEI) in the period 2020 to 2022. The method used is logistic regression. Data analysis to test the hypothesis was done by using multiple regression tests. The results of the logistic regression test show that (1) audit tenure has no significant influence on audit quality. (2) audit rotation has no significant influence on audit quality, (3) the size of the public accounting firm has no significant influence on audit quality. (4) audit opinion positively and significantly influences audit quality.

Faktor-faktor Yang Memengaruhi Kualitas Audit

This research aims to explore the factors influencing an auditor's audit quality. The researcher is interested in conducting an in-depth study to examine the impact of audit tenure, auditor switching, and audit firm size on audit quality. This study is quantitative descriptive research utilizing secondary data derived from financial statements and annual reports of property and real estate sector companies listed on the IDX during 2018–2022. The sample used in this study consists of 168 companies, which were analyzed using IBM SPSS Statistics 25. The results of this study indicate that auditor switching significantly and positively influences audit quality. This suggests that auditor switching serves as a mechanism to maintain a less tight relationship between clients and auditors, thereby preserving auditor independence and ultimately enhancing audit quality. Conversely, audit tenure and audit firm size do not significantly affect audit quality.

Pengaruh Audit Tenure, Rotasi Audit, Dan Fee Audit Terhadap Kualitas Audit Pada Perusahaan Idx80 Yang Terdaftar Di Bursa Efek Indonesia Tahun 2021-2023

The incident of poor audit quality explains that the auditor is fully responsible for the entire audit process until the final audit results are obtained. This study aims to partially examine the effect of audit tenure, audit rotation and audit fees on audit quality. The data used is secondary data obtained from consolidated annual reports and audited financial reports in IDX80 companies for 2021-2023. The population in this study were IDX80 companies listed on the Indonesia Stock Exchange in 2021-2023 with purposive sampling technique for sampling so that 47 sample companies were obtained with 141 observed financial reports. The analysis technique used is binary logistic regression analysis with associative survey quantitative methods. The results obtained show that audit tenure and audit rotation partially have a positive but not significant effect on audit quality, while audit fees have a significant positive effect on audit quality. The contribution of this research is that audit quality measured using the organization and governance of Public Accounting Firms in accordance with the Decree of the Executive Board of the Indonesian Institute of Certified Public Accountants No. 4 of 2018 concerning Guidelines for Audit Quality Indicators at Public Accounting Firms.

Effect of Audit Firm Characteristics on Audit Quality of Quoted Deposit Money Banks in Nigeria

This study investigates how the characteristics of audit firms are associated with audit quality in deposit money banks situated in Nigeria. The core explanatory variables employed or adopted were audit fees, audit tenure, and audit rotation on audit quality. The study adopted an ex-post factor research design. The population of the study consists of twelve (12) quoted deposit money banks on the Nigerian Exchange Group (NGX) as of 31st December, 2022, and twelve (12) banks were taken as the sample size using census sampling technique. The study period is from 2013 to 2022. The data were collected from the annual reports and accounts of the selected banks. Data collected were analyzed using descriptive and inferential statistics, and the hypotheses were tested using feasible generalized least squares regression analysis. The empirical findings revealed that audit fees and audit rotation have a positive and significant effect on audit quality, while audit tenure has a negative and significant effect on audit quality. On the basis of the findings, the study concludes that audit fees and audit rotation are important ingredients in achieving good audit quality. Establishing rotation programs with auditing should be implemented by all organizations seeking better planned undertakings of tasks regarding finance. The study recommended that banks should make use of standard audit firms like the Big 4 so as to get better audit quality, and there should be a good policy for audit rotation for the banks in order to achieve better audit quality.

PENGARUH UKURAN PERUSAHAAN, AUDIT TENURE, AUDIT FEE DAN AUDIT DELAY TERHADAP KUALITAS AUDIT

This research aims to determine the influence of Company Size, Audit Tenure, Audit Fee, and Audit Delay on Audit Quality in food and beverage companies listed on the Indonesia Stock Exchange in 2019-2023. This type of research is quantitative research and uses secondary data in the form of audited financial reports obtained from the official IDX website. The population in this study were 43 companies in the food and beverage sector listed on the Indonesia Stock Exchange in 2019-2023 with a sample selection technique using the purposive sampling method and 12 sample companies were obtained over a 5 year period so that the data analyzed amounted to 60 data. The analysis technique used is the Logistic Regression Analysis technique with the help of the eviews 12 program. The results of this research show that simultaneously Company Size, Audit Tenure, Audit Fee, and Audit Delay have no effect on Audit Quality. Partially, company size, audit tenure and audit delay have no effect on audit quality, while audit fees have a significant effect on audit quality.

Pengaruh Audit Tenure, Kepemilikan Manajerial, dan Ukuran Perusahaan terhadap Integritas Laporan Keuangan

Purpose: This study examined the impact of audit tenure, managerial ownership, and company size on the integrity of financial statements. Methodology: The sample was selected using purposive sampling, resulting in 29 companies and 77 data points from transportation and logistics companies listed on the Indonesia Stock Exchange during the period 2020-2022. Secondary data from the annual reports were analyzed using multiple linear regression. Results: Company size affects the integrity of financial statements, whereas audit tenure and managerial ownership do not. Limitations: The study is limited by measuring audit tenure as the number of years a Public Accounting Firm has engaged with a client, going back up to six years. Additionally, only one measurement tool–accounting conservatism–was used. Contribution: The findings are expected to enhance the understanding of financial statement integrity for both internal users, such as management, and external users, such as creditors and investors, aiding in making informed decisions. Furthermore, this study contributes to the literature by expanding the determinants of financial statement integrity in transportation and logistics companies.

The Role of Green Intellectual Capital and Busy Director as Moderators of the Influence of Prudence and Audit Tenure on Integrated Reports

Financial reports are financial information of a company in an accounting period that can be used to describe the performance of a company (Kashmir in Gayatri). Financial reports are said to be good if they have integrity over the information contained therein. Along with the convergence of IFRS, the concept of conservatism is now replaced by prudence, what is meant by prudence in IFRS is that revenue recognition may be recognized even though it is still potential, as long as it meets the provisions for revenue recognition but still uses the principle of prudence in its recognition. After SAK adopted IFRS. This study aims to test the effect of Prudence, Audit Tenure on the Integrated Report and examine whether there is a role of Green Intellectual Capital and Busy Director as a moderation of the influence of Prudence, Audit Tenure on the Integrated Report carried out by the company. This study took the research population from financial sector companies listed on the Indonesia Stock Exchange for the 2019-2021 period. The type of data used in this study is secondary data in the form of company financial reports which are used as samples. The research method used in this study is a quantitative research method. The sample was selected using the purposive sampling method. To test the hypothesis, this research uses multiple linear regression analysis. Based on the results of this study, it shows that prudence has an effect on the integrated report, Audit tenure does not have an effect on the audit report, Green Intellectual capital strengthens the effect of Prudence on the integrated report but busy directors do not strengthen the effect of Prudence on the integrated report. Green Intellectual capital strengthens the effect of Audit Tenure on the integrated report but busy directors do not strengthen the effect of Audit Tenure on the integrated report

The Influence of Audit Tenure, Audit Fee, and Institutional Ownership on Audit Delay: Study of Companies in Various Industrial Sectors Listed on The Indonesian Stock Exchange 2018-2022

ABSTRACT Purpose: This research aims to analyze the influence of audit tenure, audit fee, and institutional ownership on audit delay.Design/methodology: To do this research, the method chosen is quantitative. The sample used included 21 companies from various industries listed on the Indonesian Stock Exchange and data collected over five years, from 2018 to 2022. The logistic regression test is the analysis used.. Findings: The results showed that the probability values of audit tenure, audit fees, and institutional ownership were less than the significance level of 0.05, suggesting that the increase and decrease in the number of audits in tenure, audit fees, and institutional ownership were not large enough to indicate a significant influence on the audit delay proposed as a hypothesis.Practical implications: The author organized the diverse factors and findings inside the structured literature review, while this study, which focuses on Institutional Ownership and board governance, provides valuable insights into earlier studies. The writers guide academics, regulatory agencies, and company practices in this corporate governance topic.Originality/Value: This research is relatively new because it uses varying audit fees and various industrial sectors, which include various industrial sectors, so that the research results can be more acceptable.

The Impact of Changing External Auditors, Auditor Tenure, and Audit Firm Type on the Quality of Financial Reports on the Saudi Stock Exchange

The purpose of this study is to examine the influences of external auditor firm type, auditor tenure, and external auditor changes on the quality of Saudi Arabian financial reports. In particular, this study examines the quality of financial reports of companies listed on the Saudi Stock Exchange using a widely accepted evaluation model modified by JonesThis study aims to determine whether Big Four and non-Big Four audit firms, auditor tenures of three or more years, and external auditor changes have any impact on the quality of financial reports of Saudi-listed companies. This study uses 175 firm-year observations of 35 companies listed on the Tadawul Saudi Stock Exchange between 2017 and 2021. Using discretionary accruals (DACC) as modified by Jones to measure the quality of financial reports, the findings illustrate that there is a significant negative relationship between Big Four audit firms and DACC. However, the study also shows a significant positive correlation between auditor tenure and DACC. The research revealed that there is no significant relationship between auditor change and DACC. These results have practical implications for policy development. According to the outcomes of this research, there are numerous ramifications for both companies and the government in Saudi Arabia in terms of enhancing the relationship between companies and audit firms and determining the most suitable auditor tenure to improve the quality of financial reports.

Pengaruh Ukuran Perusahaan, Opini Audit, Profitabilitas, dan Audit Tenure Terhadap Audit Report lag pada Perusahaan Barang dan Konsumsi Sub Sektor Farmasi yang Terdaftar di BEI Tahun 2016-2022

This study aims to analyze the influence of Company Size, Audit Opinion, Profitability, and Audit Tenure on Audit Report Lag in the pharmaceutical subsector consumer goods and consumer goods industry listed on the Indonesia Stock Exchange in 2016-2022. Company size is measured by Total Assets, Audit Opinion with Dummy, Profitability with Return On Assets (ROA), Audit Tenure with Total Years of Engagement. The research population consisted of 11 companies listed on the Indonesian Stock Exchange. A sample of 72 companies was selected using the saturated sample method. The results of data analysis show that simultaneously Company Size, Audit Opinion, Profitability, Audit Tenure have a significant effect on Audit Report Lag. Partially, company size has no effect on Audit Report Lag, indicating that large and small company sizes have the ability to pressure their auditors to complete audit work on time and are not a determining factor in Audit Report Lag, Audit Opinion has a partially negative effect on Audit Report Lag, shows that companies that receive an unqualified opinion from the auditor for their financial reports will tend to urge the auditor to immediately complete the audit report because an unqualified opinion is good news from the auditor. Profitability has a partial negative effect on Audit Report Lag, indicating that if a company produces a higher level of profitability, the Audit Report Lag will be shorter. Audit Tenure has a partial positive effect on Audit Report Lag, indicating that the longer the engagement between the client and the Auditor, the longer the Audit Report Lag will be.

Komite Audit, Kualitas Audit dan Audit Tenure dalam Meningkatkan Kekuatan Integritas Laporan Keuangan: Studi Empiris pada Perusahaan BUMN Tahun 2021-2023

This research focuses on state-owned companies in 2021-2023 to evaluate the role of the audit committee, audit quality, and auditor tenure to improve the integrity of financial reports. The integrity of financial reports is a crucial aspect in business and finance because reliable and accurate reports are the basis for stakeholders in making economic decisions. This study was motivated by several cases in state-owned companies, such as PT Garuda Indonesia and PT Asuransi Jiwasraya, which showed dishonesty in financial reporting. This analysis is aimed at assessing the professionalism of the audit committee and the independent monitoring system on the performance taken for this research is secondary. With analysis tools using SPSS version 25. management to produce quality audits. Data a The research methodology involves analyzing data from 36 samples of state-owned companies using classic assumption tests, such as normality tests, multicollinearity tests, autocorrelation tests, and heteroscedasticity tests. The results of the analysis state that the audit committee variable, audit quality has a significant impact on the integrity of financial reports and audit tenure has no significant effect on the integrity of financial reports. The contribution of this analysis is the importance of the audit committee's role in improving the integrity of financial reports as reflected in effectiveness in a transparent and accountable manner, the selection of auditors who have a reputation and high competence ensures reliable financial reports, provides insight into the impact of long-term relationships between auditors and clients on the integrity of financial reports.

IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF CONSUMER GOODS FIRMS IN NIGERIA

This study examines the impact of audit quality on earnings management of listed consumer goods firms in Nigeria. The study adopted correlational research design. The population of the covers all twenty-one (21) listed consumer goods firm in Nigeria and two-stages filter was used to arrive at a sample size of fifteen (15) consumer goods firms listed the floor of Nigerian Exchange group as at 31st December, 2022, the data were extracted from annual reports and accounts of the sampled firms for the period of ten (10) years from 2013-2022. Multiple regression was used as a technique of data analysis, regression result shows that audit reporting lag, audit client’s importance and auditor independence have a positive and significant impact on earnings management of the sampled firms, while auditor’s tenure has a negative and significant impact on earnings management. Based on the findings, the study concluded that audit reporting lag, audit client’s importance and auditor independence enhanced the earnings management. while, auditor tenure does not affect earnings management. Based on findings and conclusion, it is therefore, recommends that the regulatory bodies such as Financial Reporting Council of Nigeria and Security and Exchange Commission in Nigeria should ensure that audited reports for private companies are release within a regulated period, this is because prolonged audit lagged increase earnings management by giving management of the companies enough time to manipulate earnings. This will impede the users of financial information to take an informed decision.

PENGARUH AUDIT DELAY, AUDIT TENURE, DAN KOMITE AUDIT TERHADAP KUALITAS AUDIT

This research was conducted with the aim of finding out the influence of audit delay, audit tenure, and audit committee on audit quality. This research uses companies in the property and real estate sector listed on the Indonesia Stock Exchange during the 2020-2022 period as the population. The research sample was selected using the purposive sampling method and produced 168 observation data. Data were analyzed using logistic regression analysis techniques and processed with SPSS 26. The research results show that audit delay has a negative effect on audit quality, while audit tenure and audit committee have no effect on audit quality

FAKTOR YANG MEMPENGARUHI OPINI AUDIT GOING CONCERN

The aim of this research is to determine the factors that influence going concern audit opinions on manufacturing companies listed on the Indonesian Stock Exchange in 2020-2022. The population in this research is manufacturing companies listed on the Indonesian Stock Exchange in 2020-2022 with the sample method used, namely purposive sampling and 66 companies were obtained in this research, a total of 198 companies over 3 years. The analysis technique used in this research is logistic regression. The data collection method uses a qualitative method with the type of data used being secondary data. This research variable was measured using dummy variables, while data analysis used SPSS 20. The results of this research show that there is a significant influence between audit tenure and previous year's audit opinion on the acceptance of going concern audit opinions in manufacturing companies listed on the Indonesian Stock Exchange in 2020 -2022

Cultural dynamics and tenure trajectories: how auditor tenure and culture influence key audit matters in the GCC

PurposeThis study examines the impact of audit partner tenure on Key Audit Matters (KAM) disclosures within Gulf Cooperation Council (GCC) countries. It explores how Hofstede’s cultural dimensions influence this relationship, elucidating the effect of cultural context on auditing practices.Design/methodology/approachUtilizing a sample of 456 non-financial firms in the GCC from 2016 to 2021, the study employs regression analyses to explore audit partner tenure's influence on KAM disclosures and the moderating effects of Hofstede's dimensions of power distance, individualism, masculinity and uncertainty avoidance. This affords a detailed examination of individual and cultural impacts on audit quality.FindingsResults reveal a positive relationship between audit partner tenure and KAM disclosures, suggesting that firm-specific knowledge and industry expertise acquired over a long tenure may enhance auditors' ability to identify and report significant matters. Power distance and uncertainty avoidance amplify this effect, whereas individualism diminishes it. Masculinity does not yield significant results.Research limitations/implicationsThis study underscores the need for auditing standards to reflect the complex interplay of auditor tenure and cultural dynamics in the profession's global landscape.Originality/valueThis research contributes to the literature on audit quality by highlighting the formative role of individual auditors and cultural characteristics in KAM disclosure practices. It is among the first to quantitatively analyse the intersection of audit partner tenure and culture in the GCC. It provides valuable insights for regulators, practitioners and policymakers seeking to enhance audit practices across diverse cultural environments.

Analisis Audit Tenure, Ukuran Perusahaan, dan Audit DeIay terhadap KuaIitas Audit pada Perusahaan Subsektor Pertambangan Batubara yang Terdaftar di BEI

Purpose: This study tests the hypothesis of audit tenure analysis of the effect of firm size and audit delay on audit quality in coal subsector mining companies listed on the Indonesia Stock Exchange. Research methodology: This study used quantitative data from 18 companies listed on the Indonesian Stock Exchange. The sampling technique used a purposive sampling method, and the samples that met the criteria for research were 13 companies over five years, totaling 65 financial reports for the 2018-2022 period. methods of SPSS 27. Data were collected from the documentation. Results: The results of this research partially show that Audit Tenure has no significant effect on audit quality, with a significance value of 0.720 > 0.05. Firm size does not have a significant effect on audit quality (0.933 > 0.05). Audit Delay has a significant effect on audit quality with a significance value of 0.001 < 0.05. We simultaneously obtained a significant value of 0.002 < 0.05, so simultaneously audit tenure, firm size, and audit delay influence quality audits. Limitations: Audit researchers are involved in coal subsector mining companies listed on the Indonesia Stock Exchange. Contribution: The researcher’s contribution to Audit Tenure, Firm Size, and Audit Delay on Audit Quality

Audit Quality and Accounting Going Concern: An Altman Z score Approach

This empirical study evaluated the effect of audit quality on accounting going concern of listed manufacturing firms in Nigeria between 2015 and 2020. The research design adopted for this study was the ex-post facto research design. Secondary data were collected from audited reports and accounts of the related manufacturing firms listed on the Nigerian Stock Exchange Fact Book. Using the Krejcie and Morgan formula to obtain a homogenous sample, 38 firms were selected from the healthcare, consumer goods and industrial sub sectors of the Nigerian economy. Data were analyzed with the aid of Ordinary Least Squares method of multiple regression. From the random effects model, the variable of audit firm size (Coef. = 0.604, z = 1.21 and p – value = 0.226) has a positive effect and statistically insignificant at 5%. Audit tenure (Coef. = 0.557, z = 2.05 and p – value = 0.040) has a positive effect and statistically significant at 5%. The variable auditor’s fees (Coef. = -5.160, z = -1.93 and p- value = 0.054) has a negative effect and statistically significant at 5%. Based on the findings of this study, it was concluded that the Going Concern assumption is vital for the valuation of business assets since these assets can be valued upon their business values in use rather than their termination values, which in general are a lot lower. If a firm is not expected to continue to stay in business in the foreseeable future, the auditor can give an adverse opinion in the form of a Going Concern Opinion. The manufacturing sector is extremely crucial for the economic growth and development of a developing economy such as Nigeria. It is therefore recommended that (i) Managers of listed manufacturing firms in Nigeria should become part owners of the firms so as to (a) have the same incentives as the owners (b) lower the level of conflict of interests since this have been proven to have significant negative correlation with the problem of Accounting Going Concern (ii) Managerial policies that tend to increase audit fee should be re-examined and possibly reviewed downwards especially if the aim is to improve the firm’s Accounting Going Concern.

Factors Affecting The Integrity of Company Financial Statements

This research aims to test and gather empirical evidence of Factors Affecting the Integrity of the Company's Financial Statements. Factors examined in this study include Audit Committee, Board of Commissioners, Institutional Ownership, Audit Tenure, Auditor Industry Specialization and Financial Distress as independent variables. Meanwhile, the dependent variable is the Integrity of Financial Statements. The sample chosen for this study is Consumer Goods Industry Sector Companies listed on the Indonesia Stock Exchange (IDX) during 2020-2022, then purposive sampling method was implemented as the sampling technique. This study uses secondary data: the company's financial statements and annual reports. The collected data were then analysed by multiple linear regression using Statistical Package for Social Sciences (SPSS) version 22. The study’s findings reveal that the Audit Committee positively affects the integrity of Financial Statements. Meanwhile, the Board of Commissioners, Institutional Ownership, Audit Tenure Auditor Industry Specialization, and Financial Distress do not affect the Integrity of Financial Statements. It is recommended that further research consider adding variables as independent variables, moderating variables or intervention variables that have the potential to increase their influence on the integrity of financial reports.

PENGARUH WHISTLEBLOWING SYSTEM DAN FAKTOR LAINNYA PADA INTEGRITAS LAPORAN KEUANGAN

The objective of this research is to obtain empirical evidence regarding variables influencing the integrity of financial statements. Specifically, institutional ownership, managerial ownership, independent commissioners, audit tenure, whistleblowing system, leverage, and company size on integrity financial statements. The population used in this study consists of companies in the cyclicals and non-cyclicals consumer sectors listed on the Indonesia Stock Exchange (IDX) from 2020 until 2022. Sample selection was conducted using purposive sampling method, resulting in 543 data samples or 181 companies meeting the sample selection criteria. The collected sample data were tested and analyzed using multiple regression analysis. The findings of this research indicate that institutional ownership and leverage affect the integrity of financial statements. Meanwhile, managerial ownership, independent commissioners, audit tenure, whistleblowing system, and company size do not have a significant impact on the integrity of financial statements.