Audit Tenure Research Articles

Impact of a Company’s Size and Audit Tenure on Audit Quality in Indonesia

Impact of a Company’s Size and Audit Tenure on Audit Quality in Indonesia

Impact of Auditor’s Independence on Earnings Management of Listed Deposit Money Banks in Nigeria

This research investigates the impact of auditor’s independence on earnings management in listed deposit money banks in Nigeria. Utilizing a correlational research design, the study explores the relationships between auditors’ independence, measured by audit firm specialization, audit fee, and audit firm size, and earnings management, proxied by accrued earnings. Secondary data from the annual reports and accounts of twelve selected banks over ten years (2013-2022) were analyzed using fixed effect estimation. The findings reveal that audit fee, audit size, and audit tenure positively influence earnings management. The positive coefficients suggest that higher audit fees, larger audit sizes, and longer audit tenures are associated with increased discretionary accruals. However, non-significant p-values caution against accepting these associations at the 5% level. The coefficient of determination (R2) indicates that the chosen variables collectively explain 27.26% of earnings management, offering some explanatory power to the model. In conclusion, the study recommends listed deposit money banks to prioritize engagement with Big 4 Audit Firms and carefully consider audit fee structures. Regulatory bodies, particularly the Central Bank of Nigeria, are advised to enhance surveillance, particularly in the realm of auditor remunerations. The research underscores the need for caution in interpreting the identified associations and highlights avenues for future research, including incorporating control variables and addressing potential endogeneity concerns for a more nuanced understanding of the relationship.

Effect of Audit Quality on Financial Performance of Quoted Conglomerates in Nigeria

This study was embarked on to ascertain the effect of audit quality on financial performance of quoted conglomerates in Nigeria. The study specifically investigates the effect of audit size, fee and tenure on return on asset of selected conglomerates in Nigeria. Purposive sampling technique was used to select the conglomerates in the study. The study involves a time series data between 2011-2021 involving 12 years. Data was excerpted from their financial summaries. The study adopted Ordinary least square regression technique, and also applied econometric estimations such as Augmented Dickey Fuller (ADF) and Johanson Cointegration tests. The study therefore concludes that audit tenure affects a propensity to disclose key audit matters. However, audit size and fee are not strong drivers of financial performance. The Study recommends that organisations should ensure credibility and transparency in audit; this will enhance the quality of audit report. There must be willingness of management to communicate with the auditor while also enlarging the audit size to improve audit reports and minimize the adverse impact on the company, the management should make the auditor more aware of the intended disclosure and the company’s position and communicate with the auditor more actively.

ETHICAL ISSUES IN CORPORATE FINANCIAL REPORTING AND LIABILITIES OF STATUTORY AUDITORS IN LISTED COMPANIES

: People do business with nameless, faceless organizations on a regular basis in market cultures. Auditors and external auditing are marketed in these cultures as a trust-building watchdog with the power to develop a specific social structure. Investors and depositors in numerous Nigerian banks and corporations lost several billions of Naira as a result of unethical accounting and auditing practices, causing problems for a number of organizations and businesses. The study looked into the relationship between ethical difficulties in corporate reporting and statutory auditor liability. The survey Research Design was used in the study. A intentional sampling technique was used to choose the five largest audit firms and five medium-sized audit firms in Nigeria. Data was analysed using descriptive and inferential statistic. Findings reveal that Ethical issues in Corporate Reporting had a significant effect on Audit fee of Auditors (Adj R2= 0.28, F(3, 9)= 9.156, p <0.005); Ethical issues in Corporate Reporting had a significant effect on Audit Tenure of Auditors (Adj R2= 0.220, F(3, 9)= 11.399, p <0.005) and Ethical issues in Corporate Reporting had a significant effect on Non Audit Service of Auditors (Adj R2= 0.457, F(3, 9)= 8.756, p <0.005). The study revealed that there is a significant relationship between ethical concerns in corporate financial reporting and statutory auditor liability. It was suggested that statutory auditors ensure that a modest percentage of their overall income came from a single client company in order to prevent being harassed or intimidated while conducting their audit obligations.

Antecedents of Audit Report Lag with Audit Quality as a Moderator

This study aims to test and determine the effect of key audit matters, audit tenure, financial distress, operational complexity, and gender chief executive officer (CEO) on audit report lag with audit quality as a moderator. This study uses secondary data collected from the Indonesia Stock Exchange (IDX), the Ministry of Finance Information and Documentation Management Officer (PPID Kemenkeu), and the official website of each company. This quantitative research uses multiple linear regression analysis with the research population: consumer non-cyclical companies with food and beverages and pharmaceutical subsectors in 2019-2022 that publish annual and audited financial reports. The research population was 35 companies, and it was found that 31 companies met the research criteria in a 4-year period, with a total of 124 research samples and 12 data affected by outliers. Therefore, the total research sample is 112 companies. The results of hypothesis testing in this study indicate that financial distress and company operational complexity significantly positively affect audit report lag. While key audit matters, audit tenure, gender CEO, and audit quality do not affect audit report lag. Also, it has been proven that audit quality could weaken the relationship between financial distress and audit report lag. However, audit quality cannot moderate between key audit matters, audit tenure, operational complexity, and chief executive officer gender with audit report lag. This study implies that investors may take into consideration audit report lag before deciding to invest in a company.

Influence Audit Fee, Tenure Audit And KAP Rotation On Audit Quality

The purpose of this research is to prove that the influence audit fees, KAP rotation, and tenure audit on the quality of audits of state-owned banking staff located in Indonesia. This research consists of three independent variables consisting of audit fees, audit tenure, and KAP rotation, as well as one dependent variable, namely audit quality. This research uses a methodology causal explanatory, causal explanatory research that involves explaining the relationships between variables and evaluating previously created hypotheses. In this research, there are 4 companies and research objects in State-Owned Enterprise (BUMN) banking companies listed on the Indonesia Stock Exchange (BEI) during the 2015-2022 period. The data analysis technique in this research uses statistical data. The results of this research show that simultaneously audit fees, tenure audit, and KAP rotation has a positive influence on audit quality. Further more audit fees has a positive effect on audit quality. Then tenure audit has a positive effect on audit quality. Meanwhile, KAP rotation has a positive influence on audit quality. Keywords : Fees Audit, Audit Tenure, KAP Rotation, and Audit Quality

PENGARUH KOMPETENSI, ETIKA AUDITOR, PENGALAMAN AUDITOR, FEE AUDIT DAN AUDIT TENURE TERHADAP KUALITAS AUDIT PADA KANTOR AKUNTAN PUBLIK DI BALI

The existence of the public accounting profession will gain the trust of the public if the auditors produce quality audits. Audit quality is influenced by many factors including competence, auditor ethics, auditor experience, audit fees and audit tenure. This study aims to analyze and explain the effect of competence, auditor ethics, auditor experience, audit fees and audit tenure on audit quality. The study population comprised all auditors employed at public accounting firms in Bali. Purposive sampling was employed, yielding 88 respondents. Data collection involved validated and reliable questionnaire. The data analysis method employed in this investigation was multiple linear regression analysis. The findings reveal that auditor ethics and experience positively influence audit quality, while competence, audit fees, and audit tenure exhibit no significant impact on audit quality

Determinants of Audit Quality in Manufacturing Companies in Indonesia

This study was conducted to determine the effect of audit fees, audit tenure, client size, auditor rotation, gender of the audit committee chairman, expertise of the audit committee chairman, education of the audit committee chairman and tenure of the audit committee chairman on the audit quality of manufacturing companies listed on the Indonesia Stock Exchange in 2019-2022. The total sample in this study was 120 companies with sampling techniques using purposive sampling. This study uses logistic regression analysis with Eviews 10. The results of this study indicate that audit fees, audit tenure, client size, auditor rotation, audit committee chair expertise and audit committee chair education have no significant effect on audit quality in manufacturing companies. While the gender of the audit committee chairman has a negative and significant effect on audit quality in manufacturing companies, the tenure of the audit committee chairman has a positive and significant effect on audit quality in manufacturing companies. The results of this study imply the importance of internal company factors, especially the chairman of the audit committee in supervising the company in an effort to improve audit quality.

PENGARUH FEE AUDIT DAN TENURE AUDIT TERHADAP KUALITAS AUDIT PADA KANTOR AKUNTAN PUBLIK JAKARTA TIMUR

This research aims to find out whether audit fees, audit tenure and audit quality have an influence, either partially or simultaneously. The population used in this research is Public Accounting Firms in the East Jakarta area. The data collected is primary data taken based on questionnaires distributed to six Public Accounting Firms in East Jakarta. The data that has been collected will be calculated using SPSS 25 in data processing and analysis using the multiple linear analysis method. This research is quantitative research. The research results show that 1) audit fees partially influence audit quality. 2) audit tenure partially influences audit quality. 3) audit fees and audit tenure simultaneously have an influence on audit quality. Then the research results are based on the coefficient of determination test (R2), the R square value shows that audit fees and audit tenure have an effect on audit quality.

The Effect of Auditor Switching, Audit Delay, Audit Tenure, and Firm Size on Audit Quality (Empirical Study of Manufacturing Companies in the Consumer Goods Industry Sector Listed on the Indonesia Stock Exchange in 2017-2021)

The Effect of Auditor Switching, Audit Delay, Audit Tenure, and Firm Size on Audit Quality (Empirical Study of Manufacturing Companies in the Consumer Goods Industry Sector Listed on the Indonesia Stock Exchange in 2017-2021)

Pengaruh leverage, audit tenure dan ukuran perusahaan terhadap integritas laporan keuangan pada perusahaan sektor industri dasar dan kimia di BEI

The integrity of financial reporting refers to the accuracy and honesty with which financial information is presented. It is essential that all information about the company's financial position, performance and cash flows is accurate and reflects the company's circumstances, as the company is accountable to the users of financial reports, including investors and creditors. The integrity of financial reports is assessed using the market-to-book ratio, which measures the difference between the company's assessment and the market. This study aims to investigate the effects of leverage, audit tenure, and firm size on the integrity of financial reports through quantitative research. This research analyses the financial statements of Basic Industry and Chemical Sector companies listed on the IDX for the period of 2019-2021, using purposive sampling techniques and secondary data. Multiple linear regression analysis was conducted for estimating the relationship among variables. The findings indicate that leverage does not affect the integrity of financial statements, while audit tenure has a significant impact on the integrity of financial statements. Additionally, the study found that company size has a negative and significant effect on the integrity of financial statements.

DETERMINANTS OF GOING CONCERN AUDIT OPINIONS IN REAL ESTATE AND PROPERTY COMPANIES LISTED ON THE IDX

This study aims to determine the effect of Audit Quality, Company Size, KAP Reputation and Audit Tenure on Going Concern Audit Opinions. This research is focused on Real Estate and Property companies listed on the IDX in 2020-2022 with a total of 81 samples. The data analysis technique used is using SPSS software with the aim of obtaining accurate calculation results and facilitating proper data processing. The results of this study are audit quality, KAP reputation, and audit tenure have no effect on going concern audit opinion. Meanwhile, company size has a significant effect on going concern audit opinion.

Pengaruh Opini Audit, Audit Tenure, Audit Switching Terhadap Audit Delay Pada Perusahaan Batu Bara

Audit delay is the length of time required to complete the audit report which is calculated starting from the closing date of the financial year until the date of issuance of the audited report. The purpose of this research is to find out how the influence of audit opinion, audit tenure, audit switching on audit delay in coal sector companies listed on the Indonesia Stock Exchange (IDX). The factors tested in this study are audit opinion, audit tenure, and audit switching as independent variables and audit delay as the dependent variable. The sample in this study are coal sector companies listed on the Indonesia Stock Exchange (IDX) for the 2020-2021 period, totaling 16 companies. The analysis technique of this study uses the classical assumption test, multiple linear regression equations, and hypothesis testing with SPSS 26. The results prove that audit opinion has a positive effect on audit delay, audit tenure has a negative effect on audit delay, audit switching has a negative effect on audit delay.

Pengaruh Fee Audit, Audit Tenure, Spesialisasi Auditor, Dan Ukuran Perusahaan Terhadap Kualitas Audit

This study aims to determine the effect of audit fee, audit tenure, auditor specialization, and size firm on audit quality in companies listed the Kompas 100 index on Bursa Efek Indonesia in 2020-2022 either partially or simultaneously. The type of data in this study is quantitative with secondary data. The sample used in this study was 76 companies with 228 financial statements. The sampling technique uses purposive sampling technique. The analysis methods used in this study are logistic linear regression analysis and descriptive analysis. The results showed that audit fee has a positive effect on audit quality, audit tenure has a negative effect on audit quality, while auditor specialization did not has negative effect on audit quality, and size firm did not has negative effect on audit quality.

Audit quality, firm value and audit fees: does audit tenure matter? Egyptian evidence

Purpose This study aims to investigate the impact of audit fees on audit quality, the impact of audit quality on firm value and whether these effects are conditional on audit tenure by bringing evidence from an emerging market. Design/methodology/approach Different regression techniques are used, such as logistic regression, probit regression, ordinary least squares regression and fixed effects regression. The authors used panel data of 80 nonfinancial Egyptian-listed firms over 2016–2020. Findings The authors found a significant positive relationship between audit fees and audit quality and a significant positive relationship between audit quality and firm value. Furthermore, the authors found that the positive relationship between audit fees and audit quality is less pronounced for higher audit tenure firms. Finally, the authors also found that the positive relationship between audit quality and firm value is stronger for lower audit tenure firms. Originality/value To the best of the authors’ knowledge, this is the first study to bring evidence from an emerging African market about the joint association between audit tenure, audit fees, audit quality and firm value. It provides beneficial insights to regulators regarding the possibility and the benefits of improving audit quality, which is critically needed in contexts with weak governance systems.

The Influence of Audit Fee, Audit Tenure, and Auditor Competency on Audit Quality: A Systematic Review

Financial audit reports play a crucial role in corporate decision-making, and their quality is impacted by various factors such as audit fees, audit tenure, and auditor competency. Audit fees refer to the costs associated with audit services, audit tenure signifies the duration of the audit firm's responsibility, and auditor competency encompasses the auditor's knowledge, skills, and attitudes. This study employs a systematic review approach, analyzing articles downloaded from the Google Scholar online database covering journals published from 2019 to 2023 using keywords like audit fee, audit tenure, auditor competency, and quality of financial audit reports. The research incorporates 10 quantitative journals, with 5 employing linear regression analysis, 4 using logistic regression analysis, and 1 utilizing the partial least squares method. The findings reveal that a majority of the journals demonstrate a positive and significant correlation between audit fees, audit tenure, auditor competency, and the quality of audit reports. Nonetheless, a few articles assert the absence of a relationship between audit fees, audit tenure, and audit quality. In summary, public accounting firms should regularly assess and formulate strategies concerning audit fees, audit tenure, and auditor competency to enhance client value by producing high-quality, accurate, and dependable financial audit reports.

Pengaruh Audit Tenure, Ukuran Kantor Akuntan Publik, Rotasi Audit, Dan Audit Delay Terhadap Kualitas Audit Pada Perusahan Manufaktur Subsektor Makanan Dan Minuman

This research aims to find out whether audit tenure, KAP size, audit rotation, and audit delay have an effect on audit quality in manufacturing companies with the food and beverage subsector listed on the Indonesia Stock Exchange (BEI) in 2019-2022, either partially or simultaneously. The type of data in this research is quantitative with secondary data. The sample used in this research was 30 food and beverage companies with 128 financial reports. The sampling technique uses purposive sampling technique. The analytical methods used in this research are logistic regression analysis and descriptive analysis. The results of this research show that audit tenure has a positive and significant effect on audit quality, while KAP size, audit rotation and audit delay do not have a significant effect on audit quality.

THE INFLUENCE OF AUDIT TENURE, AUDIT OPINION, KAP REPUTATION AND AUDITOR SWITCH ON AUDIT REPORT LAG WITH AUDITOR INDUSTRY SPECIALIZATION AS A MODERATION VARIABLE

The purpose of this paper is to test and evaluate how much influence Audit Tenure, Audit Opinion, Public Accounting Firm Reputation, Auditor Switching, and Auditor Industry Specialization as moderator variable has on Audit Report Lag. This research uses Indonesian Stock Exchange data as the population of this study and to examine the companies in the food and beverage sector. This research uses quantitative methodology and secondary sources. In 2021, the Indonesian Stock Exchange is expected to list 39 food and beverage companies. The sample size for this study was 22 food and beverage companies and 110 data were used as samplesand was selected using the purposive sampling method. This research utilizes SPSS version 26 (Statistical Package for Social Sciences) for its statistical analytical needs.This reasearch data analysis uses moderated regression analysis.In this research variable such as Audit Tenure, Audit Opinion, Public Accounting Firm Reputation, Auditor Switching, Auditor Industry Specialization and Audit Report Lag’s Indicator was based on previous studies. Audit tenure is measured by the length of the KAP's engagement with the same auditee. Audit Opinion using the nominal ratio of type opinion given. Public Accounting Firm Reputation indicator’s wheter a company using Big4 as their auditor or not. Auditor Switching indicator’s if company changing its KAP is given code 1, if not 0. Auditor Industry Specialization using SPEC formulation as the indicator. And for the dependent variable, Audit Report Lag measured in days from the date of the closing of company the book until the date of financial report is published to the public.According to this study, longer audit tenure resulted in longer audit report lag. There is no statistically significant correlation between audit report lag and variables audit opinion, audit firm reputation, or auditor switching. There is a positive and statistically significant relationship between audit tenure and auditor industry specialization as a moderation variable with audit report lag. Auditor industry specialization can not moderate the impact of audit opinion, KAP reputation, and auditor turnover on audit report lag.

DOES CLIENT IMPORTANCE AFFECT AUDIT QUALITY IN MODERATION?

The financial report is a report that is very necessary in making decisions. For this reason, a quality audit is needed that can truly explain the condition of the company. Good audit quality can provide the right information for its users, while poor audit quality can cause many losses, both internal and external. The purpose of this research is to examine the influence of audit tenure, audit committee, and public accounting firm industry specialization on audit quality with client importance as a moderator. The data in this research uses secondary data obtained from the 2019 to 2021 financial reports listed on the Indonesia Stock Exchange using the purposive sampling method and using the SPSS program in data processing. The independent variables in this research are audit tenure, audit committee, and public accounting firm industry specialization. Audit tenure is calculated based on the number of years of engagement, the first year is given the number 1 and 1 is added for the following years. The audit committee is calculated based on the number of audit committee members. Public accounting firm industry specialization is calculated based on the number of companies audited by the same auditor divided by the number of companies, and if the result is more than 20% it is given the number 1, otherwise it is given the number 0. The dependent variable in this research is audit quality which is given the number 1 for the Big Four and 0 for the Non-Big Four, and the moderating variable is client importance which is calculated by the natural logarithm of total assets divided by the natural logarithm of total assets audited by the same auditor. This research uses logistic regression analysis in data processing because the independent variable indicators are dichotomous. The results of this research are that audit tenure affects audit quality, audit committees have an effect on audit quality, and public accounting firm industry specialization has no effect on audit quality. Client importance as moderation also cannot influence audit tenure, audit committee, and public accounting firm industry specialization on audit quality.

THE EFFECT OF AUDIT FEE, AUDIT TENURE, AND FIRM SIZE ON AUDIT QUALITY

The aim of this study is to obtain empirical evidence regarding the effect of audit fee, audit tenure and firm size on audit quality in finance companies listed on the Indonesia Stock Exchange in 2018 – 2020. This study uses a purposive sampling method with 38 finance companies listed on the Indonesian Stock Exchange. The data in this study were inputted and calculated using the Microsoft Excel program and processed using the EViews 9.0 program. The result of this study indicate that audit fee has a significant negative effect on audit quality while audit tenure has no significant value on audit quality and firm size has a significant positive effect on audit quality.