Audit Quality Demand in a Differentiated Market and Auditor Switching: Evidence from China

2009 ◽  
Author(s):  
Xiao Xiao ◽  
Yi Zhou
Keyword(s):  
Audit Quality ◽  
Auditor Switching

Pengaruh Profitabilitas, Umur Perusahaan, Ukuran Perusahaan, Kualitas Audit, Dan Struktur Modal Terhadap Kualitas Laba

2014 ◽  
Vol 6 (1) ◽  
pp. 27-42
Author(s):  
Keshia Anjelica ◽  
Albertus Fani Prasetyawan
Keyword(s):  
Firm Size ◽  
Stock Prices ◽  
Audit Quality ◽  
Earnings Quality ◽  
Secondary Data ◽  
Financial Statements ◽  
Firm Age ◽  
Construction Companies ◽  
Auditor Switching ◽  
Testing Method

The objective of this research is to examine the effect of profitability, firm age, firm size, audit quality, and leverage both partially and simultaneously towards earnings quality. The testing method used in this research is multiple regressions. The objects of this study are property, real estate and construction companies which were listed at Kompas 100 for the period 2010-2012. The samples are 15 companies determined based on purposive sampling. The data used in this study are secondary data such as financial statements and historical stock prices. The results of this study are (1) firm age has a negative significant effect on earnings quality, meanwhile firm size has a positive significant effect on earnings quality (2) profitability, audit quality, and leverage partially have an insignificant effect towards earnings quality (3) profitability, firm age, firm size, audit quality, and leverage simultaneously have a significant effect towards voluntary auditor switching. Keywords: ERC, earnings quality, profitability, firm age, firm size, audit quality, leverage.

Market Reaction to Auditor Switching from Big 4 to Third-Tier Small Accounting Firms

2010 ◽  
Vol 29 (2) ◽  
pp. 83-114 ◽  
Author(s):  
Hsihui Chang ◽  
C. S. Agnes Cheng ◽  
Kenneth J. Reichelt
Keyword(s):  
Stock Market ◽  
Audit Quality ◽  
Market Reaction ◽  
Accounting Firms ◽  
Auditor Switching ◽  
Sarbanes Oxley ◽  
Big 4 ◽  
Period 2 ◽  
Prior Literature ◽  
Second Tier

SUMMARY: After the demise of Arthur Andersen, the public accounting industry has witnessed a significant migration of public clients to second-tier (Grant Thornton and BDO Seidman) and smaller third-tier accounting firms. While prior literature documents that smaller auditors are perceived by the stock market as an inferior substitute for a Big 4 auditor, this perception appears to have changed in recent years. In this paper, we analyze market responses to auditor switching from Big 4 to smaller accounting firms during 2002 to 2006. We break our sample period into two separate periods (Periods 1 and 2) based on when regulatory changes occurred. These changes included Sarbanes-Oxley (SOX) 404 implementation, Public Company Accounting Oversight Board (PCAOB) inspections, and a tightened Form 8-K filing deadline. We find a relatively more positive stock market reaction to clients switching from a Big 4 to a smaller third-tier auditor in Period 2. This relatively more positive reaction in Period 2 reflects companies seeking better services rather than a lower audit fee, when an audit quality drop is less likely. Overall, our results suggest that companies and investors have become more receptive to smaller accounting firms.

scholarly journals AUDITOR SWITCHING AND AUDIT TENURE ON AUDIT QUALITY, FEE AUDIT ON THE INDONESIA STOCK EXCHANGE

2021 ◽  
Vol 1 (1) ◽  
pp. 22-34
Author(s):  
Jamaluddin Majid ◽  
Ratnasari Ratnasari ◽  
Ridwan Tabe
Keyword(s):  
Logistic Regression ◽  
Regression Analysis ◽  
Logistic Regression Analysis ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Total Sample ◽  
Company Size ◽  
Manufacturing Companies ◽  
Auditor Switching

The research was aimed to determine the effect of auditor switching, audit tenure,  company size variables on audit quality and to determine fee audit fee variables in moderating the effect between auditor switching, audit tenure, and company size variables on audit quality. The population is manufacturing companies listed on the Indonesia Stock Exchange during the 2014-2017 period. The total sample is 43 companies using the purposive sampling technique. The data used in the research were financial statements. The method of data analysis uses logistic regression analysis for the hypotheses of auditor switching, audit tenure, and company size. Logistic regression analysis with a residual test for the hypotheses of auditor switching, audit tenure, and company size on audit quality that moderated by fee audit. The results of the research indicated that auditor switching had a negative and significant effect on audit quality. While audit tenure and company size have a positive and significant effect on audit quality. Related to moderating variables indicate that fee audit is not able to moderate auditor switching and audit tenure on audit quality. Conversely, fee audit has an effect as a moderating variable between company size and audit quality

scholarly journals Pengaruh Pergantian Auditor dan Kualitas Audit terhadap Opini Audit Going Concern: Studi Empiris Perusahaan Manufaktur di Bursa Efek Indonesia

2013 ◽  
Vol 4 (1) ◽  
pp. 514-530
Author(s):  
Arlen Djunaidi ◽  
Gatot Soepriyanto
Keyword(s):  
Audit Quality ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Manufacturing Companies ◽  
Audit Opinion ◽  
The Public ◽  
Going Concern ◽  
Auditor Switching ◽  
Big Four ◽  
Public Accountant

This study aims to analyze the effect of auditor switching and audit quality on going concern audit opinion in listed manufacturing companies of the Indonesia Stock Exchange (BEI) in the year 2006 to 2008. Auditor switching was marked by a change to the Public Accountant firms (KAP) who perform the audits or companies used the services of an auditor different than before. Audit quality is proxied by the scale of the BigFour auditors or non-Big Four. Going-concern audit opinion is the explanation given by the auditor if there is any doubt regarding the ability of the company to survive in the future. This study used 70 samples out of 452 populations, using purposive sampling technique in which the main criterion is the sample company received going-concern audit opinion in the year preceding the auditor switched. Results of the study showed that the change of auditors and audit quality is not a factor in determining going concern audit opinion of the company.

scholarly journals PENGARUH KUALITAS AUDIT DAN AUDITOR SWITCHING TERHADAP MANAJEMEN LABA

2020 ◽  
Vol 22 (1) ◽  
pp. 95-104
Author(s):  
FELITA ICASIA HADI ◽  
SHERLY TIFANI
Keyword(s):  
Earnings Management ◽  
Multiple Regression ◽  
Audit Quality ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Listed Companies ◽  
Negative Direction ◽  
Auditor Switching ◽  
The Relationship

The purpose of this study is to examine the effect of audit quality and auditor switching on earnings management with fee audit as the intervening variable. Data in this study is secondary data derived from the annual report of listed companies in Indonesia Stock Exchange in 2016-2018. There are 117 sample and the method used for sampling is purposive sampling. The hypothesis ini this study was tested using multiple regression. The result of this study showed that audit quality positively influence fee audit but not significant, auditor switching negatively influence  fee audit, audit quality influence earnings management with negative direction, auditor switching positively influence earnings management but not signifitcant, fee audit negatively influence earnings management but not significant, and there is no influence of variable intervening in the relationship between audit quality and auditor switching on earnings management.

Auditor Response to Estimated Misstatement Risk: A Machine Learning Approach

2021 ◽  
Author(s):  
Emily Hunt ◽  
Joshua O.S. Hunt ◽  
Vernon J. Richardson ◽  
David Rosser
Keyword(s):  
Machine Learning ◽  
Risk Premium ◽  
Audit Quality ◽  
Audit Fees ◽  
Risk Assessments ◽  
Machine Learning Techniques ◽  
Learning Approach ◽  
Auditor Switching ◽  
Learning Techniques ◽  
Machine Learning Approach

In this paper, we investigate whether misstatement risk estimated using advanced machine learning techniques, hereafter referred to as estimated misstatement risk (EMR), approximates auditors' risk assessments in practice. We find that auditors price EMR and that auditor turnover is more likely to occur when EMR increases, indicating that EMR is associated with auditors' risk assessment. We also find evidence that EMR is positively and significantly associated with audit fees and auditor switching for companies with Big N auditors but not for other companies, suggesting that Big N auditors are more responsive to risks captured by EMR. Additional analyses reveal that companies switching auditors when EMR increases are more likely to engage non-Big N auditors. Surprisingly, we find little evidence that the association between audit quality and EMR differs by auditor type. Our findings are consistent with the notion that the documented association between audit fees and EMR primarily reflects a risk premium in our setting.

scholarly journals Pengaruh Audit Tenure dan Auditor Switching Terhadap Kualitas Audit pada Perusahaan Manufaktur Di Indonesia dengan Financial Distress Sebagai Pemoderasi

2021 ◽  
Vol 3 (1) ◽  
pp. 82-97
Author(s):  
Dede Elevendra ◽  
Nayang Helmayunita
Keyword(s):  
Logistic Regression ◽  
Regression Analysis ◽  
Logistic Regression Analysis ◽  
Financial Distress ◽  
Audit Quality ◽  
Stock Exchange ◽  
Auditor Switching

The purpose of this study was to determine the effect of audit tenure and auditor switching on audit quality with financial distress as a moderating variable. The analysis of this research used logistic regression analysis. The sample consists of companies listed on the Indonesia Stock Exchange (BEI) for the current year (2015-2019). The results showed that audit tenure and auditor switching had no effect on audit quality and financial distress was unable to moderate the effect of audit tenure and auditor switching on audit quality.

scholarly journals Pengaruh Kualitas Audit dan Auditor Switching Terhadap Manajemen Laba

2020 ◽  
Vol 9 (2) ◽  
pp. 117-129
Author(s):  
Felita Icasia Hadi ◽  
Sherly Tifani
Keyword(s):  
Earnings Management ◽  
Multiple Regression ◽  
Audit Quality ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Negative Direction ◽  
Auditor Switching ◽  
Audit Fee ◽  
The Relationship

The purpose of this study is to examine the effect of audit quality and auditor switching on earnings management with the audit fee as the intervening variable. Data in this study is secondary data derived from the annual report of listed companies in Indonesia Stock Exchange in 2016-2018. There are 117 samples and the method used for sampling is purposive sampling. The hypothesis in this study was tested using multiple regression. The result of this study showed that audit quality positively influences fee audit but not significant, auditor switching negatively influence fee audit, audit quality influence earnings management with negative direction, auditor switching positively influence earnings management but not significant, fee audit negatively influence earnings management but not significant, and there is no influence of intervening variable in the relationship between audit quality and auditor switching on earnings management.

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