Financial distress as a moderating variable of the influence of audit opinion and public accounting firm size on voluntary auditor switching

Purpose - This study aims to examine the effect of financial distress as a moderator of the effect of audit opinion and public accounting firm (KAP) size on auditor switching in companies listed on the Jakarta Islamic Index (JII) for the 2014-2019 period.Method - This study uses a sample of companies listed on the Jakarta Islamic Index (JII) for the 2014-2019 period. The number of companies sampled in this study were 12 companies. In this study, the researchers used a quantitative type of model and used the Statistical Package for Social Science (SPSS) version 16 for analyzing the data.Result - The results show that audit opinion and public accounting firm size have no effect on auditor switching, financial distress is not able to moderate the effect of audit opinion with auditor switching, and financial distress is not able to moderate the relationship between public accounting firm size and auditor switching.Implication - For stakeholders in motivating management to retain or replace auditors from various factors that are considered including audit opinion, public accounting firm size and financial distress.Originality - The object used in this study is a list of companies registered on JII. There is a 2-year additional period from the previous study, which was 4 years to 6 years. The measuring instrument for the financial distress variable used in this study is the Altman Z-score.

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THE EFFECT OF AUDIT OPINION, CHANGE OF MANAGEMENT, FINANCIAL DISTRESS AND SIZE OF A PUBLIC ACCOUNTING FIRM ON AUDITOR SWITCHING

Jurnal Akuntansi Trisakti ◽

10.25105/jat.v6i1.4868 ◽

2019 ◽

Vol 6 (1) ◽

pp. 55

Author(s):

Irma Ade Alisa ◽

Intan Ayu Rosita Devi ◽

Fradini Brillyandra

Keyword(s):

Financial Distress ◽

Stock Exchange ◽

Secondary Data ◽

Manufacturing Companies ◽

Public Accounting ◽

Audit Opinion ◽

Accounting Firm ◽

Opinion Change ◽

Auditor Switching ◽

Analysis Technique

This research aims to analyze and determine the effect of the audit opinion, change of management, financial distress, and the size of the public accounting firm on the auditor switching. This research uses secondary data from the official website of the Indonesia Stock Exchange. This research was conducted on manufacturing companies that have been listed in the Indonesia Stock Exchange from 2015-2017. The population in this research were all manufacturing companies. This research uses the purposive sampling method. Samples were 94 companies of 144 companies listed on the Indonesia Stock Exchange in 2015-2017, so the research data analyzed amounted to 282. The analysis technique in this research was the logistic regression analysis. The results of hypothesis testing in this research indicate that audit opinion, Change of Management, and size of public accounting firm have a positive effect on auditor switching. Meanwhile, financial distress does not affect auditor switching.

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The Effect of Financial Distress, Management Turnover, Audit Opinion and Reputation of Public Accounting Firm to Auditor Switching

10.7176/rjfa/10-22-11 ◽

2019 ◽

Keyword(s):

Financial Distress ◽

Public Accounting ◽

Management Turnover ◽

Audit Opinion ◽

Accounting Firm ◽

Auditor Switching

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The effect of public accounting firm size, financial distress, institutional ownership, and management change on the auditor switching in manufacturing companies listed in Indonesia Stock Exchange

The Indonesian Accounting Review ◽

10.14414/tiar.v4i02.334 ◽

2014 ◽

Vol 4 (02) ◽

pp. 185

Author(s):

Dewi Sri Kistini ◽

Joicenda Nahumury

Keyword(s):

Firm Size ◽

Financial Distress ◽

Stock Exchange ◽

Institutional Ownership ◽

Manufacturing Companies ◽

Public Accounting ◽

Accounting Firm ◽

Management Change ◽

Auditor Switching

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Penerapan IFRS Dan Pengaruhnya terhadap Keterlambatan Penyampaian Laporan Keuangan: Studi Empiris Perusahana Manufaktur di Bursa Efek Indonesia Periode Tahun 2008-2010

Binus Business Review ◽

10.21512/bbr.v3i2.1370 ◽

2012 ◽

Vol 3 (2) ◽

pp. 993

Author(s):

Stepvanny Margaretta ◽

Gatot Soepriyanto

Keyword(s):

Financial Reporting ◽

Firm Size ◽

Financial Statements ◽

Influential Factors ◽

Reporting Standards ◽

Public Accounting ◽

Financial Reports ◽

Audit Opinion ◽

Accounting Firm ◽

Financial Reporting Standards

There are several factors that affect the company's delay in submitting the financial statements are often referred to as Audit Delay, among others IFRS (International Financial Reporting Standards), firm size, profitability, size public accounting firm, audit opinion, and complexity. One factor that is quite prominent is the application of IFRS that have not been uniform across all companies in Indonesia. It could also lead to Audit Delay. Firm size theoretically means companies bigger scale required to submit financial reports on time. As for profitability, KAP size, and complexity of the audit opinion is also decent enough to be considered as one of the influential factors on Audit Delay. The results of this study indicate that the application of IFRS, profitability, size KAP, audit opinion, and complexity does not have a significant impact on the delay for submission of financial statements. Finaly, a factor that leads to significant effect of time delay submission of financial statements is the size of the company.

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PENGARUH PERGANTIAN MANAJEMEN, FINANCIAL DISTRESS, UKURAN KAP, DAN OPINI AUDIT TERHADAP AUDITOR SWITCHING PADA PERUSAHAAN PROPERTY DAN REAL ESTATE YANG TERDAFTAR DI BURSA EFEK INDONESIA PADA TAHUN 2012-2016

Jurnal Akuntansi Trisakti ◽

10.25105/jat.v7i1.6400 ◽

2020 ◽

Vol 7 (1) ◽

pp. 89

Author(s):

Nisrina Dwi Setyoastuti ◽

Murtanto Murtanto ◽

Yuana Jatu Nilawati

Keyword(s):

Real Estate ◽

Firm Size ◽

Financial Distress ◽

Stock Exchange ◽

Ordinal Scale ◽

Audit Opinion ◽

Management Change ◽

Audit Firm ◽

Auditor Switching ◽

Real Estate Sector

This study aims to determine the influence of management change, financial distress, auditor firm’s size, and audit opinion to auditor switching. Auditor switching, management change, and audit opinion are measured by using dummy variable. Financial distress is using Zmijewski Model, and audit firm size is measured by using an ordinal scale based on the big or small of the audit firm.The populations in this study were companies in property and real estate sector which listed in Indonesia Stock Exchange during 2012-2016. Total of 36 samples were obtained using a purposive sampling method. Hypothesis in this research are tested by logistic regression analytical method. The result of the analysis shows that management change and financial distress have significant effect on the auditor switching. while the audit opinion and audit firm size doesn’t have significant effect on the auditor switching.

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Do Individual Factors Matter? Examining Auditor Judgement Bias and Public Accounting Firm Size

International Journal of Business and Society ◽

10.33736/ijbs.4297.2021 ◽

2021 ◽

Vol 22 (3) ◽

pp. 1226-1239

Author(s):

Caesar Marga Putri ◽

Asti Putri Pratiwi

Keyword(s):

Locus Of Control ◽

Role Conflict ◽

Firm Size ◽

Moderating Effect ◽

Public Accounting ◽

Accounting Firms ◽

Accounting Firm ◽

Internal Locus Of Control ◽

Judgement Bias ◽

The Relationship

Auditor personality is a topic of interest within the accounting field due to the scarcity of research on accountant personalities in Indonesia. This research aimed to examine the moderating effect of public accounting firm size, personality traits and locus of control on the correlation between role conflict and auditor judgement bias. The sample comprises auditors who work at public accounting firms in Java province and the study uses regression analysis as its method of analysis. The result shows that only internal locus of control has a significant moderating effect on the relationship between role conflict and auditor judgement bias. This indicates that auditor personality and public accounting firm size do not affect auditors’ professionalism in making judgements.

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Client Internal Factors to The Change of Upgrade, Downgrade, and Same Grade of Public Accounting Firm (An Empirical Study on The Banking Sector Companies Listed in The Indonesia Stock Exchange for The Year of 2014-2018)

Riset Akuntansi dan Keuangan Indonesia ◽

10.23917/reaksi.v5i2.10680 ◽

2020 ◽

Vol 5 (2) ◽

pp. 171-183

Author(s):

Erma Setiawati ◽

Devaria Aisya Setyowati ◽

Mahameru Rosy Rochmatullah

Keyword(s):

Firm Size ◽

Financial Distress ◽

Banking Sector ◽

Stock Exchange ◽

Multinomial Logistic Regression ◽

Sampling Technique ◽

Public Accounting ◽

Internal Factors ◽

Accounting Firm ◽

Management Changes

This study aimed at determining the effect of client internal factors, such as; firm size, financial distress and management changes to switching of a public accounting firm (PAF). The population of this study was the company of the banking sector listed in the Indonesia Stock Exchange from 2014 to 2018. The sampling technique used in this study was purposive sampling method which generated a sample of 195 companies. The multinomial logistic regression test was performed because there were three categories of the dependent variable. The results of the analysis revealed that financial distress did not affect the change of PAF upgrade, downgrade, and the same grade. Firm size did not affect the change of PAF upgrade, downgrade and the same grade and management changes did not affect the change of PAF upgrade, downgrade, and the same grade.

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PENGARUH KONDISI KEUANGAN PERUSAHAAN, UKURAN PERUSAHAAN, PERTUMBUHAN PERUSAHAAN DAN REPUTASI KAP TERHADAP PENERIMAAN OPINI AUDIT GOING CONCERN PADA PERUSAHAAN PERTAMBANGAN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2015-2017

Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi ◽

10.24815/jimeka.v4i2.12239 ◽

2019 ◽

Vol 4 (2) ◽

pp. 286-303

Author(s):

Rivaldi Akbar ◽

Ridwan Ridwan

Keyword(s):

Financial Distress ◽

Stock Exchange ◽

Total Sample ◽

Analysis Tool ◽

Public Accounting ◽

Audit Opinion ◽

Accounting Firm ◽

The Public ◽

Going Concern ◽

Going Concern Opinion

This study aims to examine the effect of financial distress, size firms, growth companies, and reputation public accounting firm on acceptance of going concern opinion. The method of this research is a quantitativ approach and SPSS as an analysis tool. Object under study is a mining companies listed on Indonesia Stock Exchange during the periode 2015-2017,as many 33 companies for 3 years with 99 total sample. Testing is done by using logistic regresion analysis by using SPSS version 25.The result showed that the financial distress proxied by the calculation of altman modification model has no significant on the acceptance of going concern audit opinion. Second, the firm size has significant and positive effect on the acceptance of going concern opinion. Third, the growth companies has significant and negative effect on the acceptance of going concern opinion. Finally, the reputation of the public accounting firm proxied at the scale of the public accounting firm has no significant effect on the acceptance of going concern audit opinion

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PENGARUH AUDIT OPINION, AUDIT TENURE, DAN PROFITABILITAS TERHADAP AUDIT DELAY DENGAN REPUTASI KANTOR AKUNTAN PUBLIK(KAP) SEBAGAI VARIABEL MODERASI

Jurakunman (Jurnal Akuntansi dan Manajemen) ◽

10.48042/jurakunman.v14i1.59 ◽

2021 ◽

Vol 14 (1) ◽

pp. 26

Author(s):

SHANIA ARIESTIA ◽

Tanggor Sihombing

Keyword(s):

Hypothesis Test ◽

Multiple Linear Regression Model ◽

Public Accounting ◽

Firm Reputation ◽

Audit Opinion ◽

Accounting Firm ◽

Moderating Variables ◽

The Public ◽

Final Sample ◽

The Relationship

The aim of this study is to find out how the effect of audit opinion, audit tenure, and profitability on audit delay with the public accounting firm reputation as a moderating variable. The sample of this study is a manufacturing company from the basic industry and chemical sectors listed on S&P Global during the 2017-2019 period, with a final sample size of 225 samples. The data analysis method used is a multiple linear regression model using STATA software by testing two research models, namely model 1 (model without moderating variables) and model 2 (model with moderating variables). According to the results of the model 1 hypothesis test that has been carried out, it shows that audit opinion has an effect on audit delay, while audit tenure and profitability do not have a significant effect on audit delay. Meanwhile, the results of the model 2 hypothesis test show that the public accounting firm reputation able to moderate the relationship between audit opinion and audit delay, while the public accounting firm reputation is unable to moderate the relationship between audit tenure and profitability. Keywords: Audit Delay, Audit Tenure, Public Accounting Firm Reputation, Profitability

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ANALISIS FAKTOR - FAKTOR YANG BERPENGARUH TERHADAP AUDITOR SWITCHING

JURNAL INFORMASI, PERPAJAKAN, AKUNTANSI, DAN KEUANGAN PUBLIK ◽

10.25105/jipak.v11i1.4565 ◽

2019 ◽

Vol 11 (1) ◽

pp. 1

Author(s):

Ratih Permatasari ◽

Hotman Tohir Pohan

Keyword(s):

Firm Size ◽

Financial Distress ◽

Audit Committee ◽

Manufacturing Companies ◽

Management Turnover ◽

Audit Opinion ◽

Audit Firm ◽

Purposive Sampling ◽

Auditor Switching ◽

Audit Fee

Auditor switching could happen mandatorily (because of the rules which persistent it and also voluntarily. Many question rise when a company voluntarily switches its auditor because happen outside rules which has been specified. This research aims to analyze the effect of audit firm size, financial distress, public ownership, management turnover, changes in audit committee, audit opinion, audit fee on auditor switching in Indonesia. Data collecting method which used in this research is method purposive sampling, that based on the objectives of research. ,Based on method purposive sampling, research sample total is 180 manufacturing companies which is listed in "Bursa Efek Indonesia" (BEI) in 2009-2014 period. Hypothesis in this research are tested by logistics regression analytical method. Result of this research shows that variables having which significantly effect the auditor switching are audit firm size and management turnover. On the other hand, other variables in this research like audit firm size, client size, client growth rate, financial distress, board of commissioners, and audit opinion do not have significant effect on company decision to do auditor switching.

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