The Effect of Staff Auditor Reputation on Audit Quality Enhancing Actions

2021 ◽  
Author(s):  
Emily S. Blum ◽  
Richard C. Hatfield ◽  
Richard W. Houston
Keyword(s):  
Audit Quality ◽  
Causal Link ◽  
Speaking Up ◽  
Hours Worked ◽  
Professional Obligations ◽  
Constrained Choice ◽  
Personal Costs ◽  
Perceived Costs ◽  
Auditor Reputation ◽  
Choice Set

Auditors often face situations in which acting on their professional obligations comes with potential personal costs. Drawing upon the Theory of Reputation in Organizations, we predict that perceived costs associated with these actions are lower for auditors with positive reputations, which in turn influences their actions. In our first experiment, participants perceive that auditors with negative reputations face a more constrained choice set when anticipating a budget overage. Further, participants perceive that those with positive reputations are more likely to proactively report the overage and less likely to underreport hours worked, a result mediated by the anticipated impact on evaluations for "speaking up." In a second experiment, we manipulate reputation in a live simulation and demonstrate a causal link between reputation and auditors' skeptical action. Taken together, our experiments provide evidence that an auditor's perceived reputation influences their choice to engage in audit quality enhancing behaviors.

scholarly journals Pengaruh Rotasi, Reputasi dan Spesialisasi Auditor terhadap Kualitas Audit (Studi Empiris pada Perusahaan Manufaktur yang Listed di BEI)

2017 ◽  
Vol 15 (2) ◽  
Author(s):  
Adib Azinudin Nizar
Keyword(s):  
Audit Quality ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Auditor Rotation ◽  
Logistics Regression ◽  
Analyse Data ◽  
Auditor Specialization ◽  
Auditor Reputation

The study aimed to empirically examine the effect of auditor rotation, audit reputation, and audit specialization on audit quality. The population of data is the entire manufacturing companies listed on the Indonesia stock Exchange in the period 2012 to 2015. Based on this method, sample of 104 manufacturing firms were obtained from the period 2012-2015. Proxy measurements for audit quality are using earning benchmark. The logistics regression was used to analyse data. The results showed that auditor rotation affecting on audit quality, auditor reputation affecting on audit quality, and auditor specialization affecting on audit quality.Keyword: auditor rotation, auditor reputation, auditor specialization, audit quality.

scholarly journals Tenure Audit, Reputasi Auditor dan Kualitas Audit pada Perusahaan Manufaktur : Analisis Kompleksitas Operasi sebagai Pemoderasi

2018 ◽  
Vol 5 (01) ◽  
pp. 1-13
Author(s):  
Amirul Hadi Khasani ◽  
Amilin Amilin ◽  
Choirul Anwar
Keyword(s):  
Sampling Method ◽  
Audit Quality ◽  
Stock Exchange ◽  
Peer Group ◽  
Jel Classification ◽  
Test Results ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
Arthur Andersen ◽  
Auditor Reputation

ABSTRACT This study examines the influence of audit tenure and auditor reputation on audit quality with operational complexity as a moderating variable. The Enron case involving Arthur Andersen led to the limitation of the audit tenure. Audit quality is measured by current accrual while audit lag is measured by calculating the year in which the same auditor has committed to the auditee, the auditor’s reputation is measured by the peer group amount and the operating complexity is measured using the number of subsidiaries. This study focused on manufacturing companies listed on the Indonesia Stock Exchange 2011 to 2015, using purposive sampling method obtained 225 research samples. Hypothesis testing in this study using multiple regression analysis. Test results show that audit tenure does not affect audit quality, auditor reputation does not affect audit quality while operating complexity affects on tenure audit relationship with audit quality and auditor reputation with audit quality. ABSTRAK Penelitian ini menguji pengaruh tenure audit dan reputasi auditor terhadap kualitas audit dengan kompleksitas operasi sebagai variabel moderasi. Kasus Enron yang melibatkan Arthur Andersen menyebabkan pembatasan tenure audit. Kualitas audit diukur dengan akrual lancar sedangkan tenure audit diukur dengan menghitung tahun dimana auditor yang sama telah melakukan perikatan dengan auditee, reputasi auditor diukur dengan menggunakan kelompok jumlah rekan dan kompleksitas operasi diukur dengan menggunakan jumlah anak perusahaan. Penelitian ini difokuskan pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2011 sampai dengan 2015, dengan menggunakan motode purposive sampling diperoleh 225 sampel penelitian. Pengujian hipotesis dalam penelitian ini menggunakan analisis regresi berganda. Hasil pengujian menunjukkan bahwa tenure audit tidak berpengaruh terhadap kualitas audit, reputasi auditor tidak berpengaruh pada kualitas audit sedangkan kompleksitas operasi berpengaruh pada hubungan tenure audit dengan kualitas audit dan reputasi Auditor dengan kualitas audit. JEL Classification: M42, M41, G02

scholarly journals Audit Quality and Auditor Reputation: Evidence from Japan

2012 ◽  
Vol 87 (5) ◽  
pp. 1737-1765 ◽  
Author(s):  
Douglas J. Skinner ◽  
Suraj Srinivasan
Keyword(s):  
Financial Services ◽  
Audit Quality ◽  
Data Availability ◽  
Growth Options ◽  
Accounting Fraud ◽  
Audit Firms ◽  
Auditor Reputation

ABSTRACT We study events surrounding ChuoAoyama's failed audit of Kanebo, a large Japanese cosmetics company whose management engaged in a massive accounting fraud. ChuoAoyama was PwC's Japanese affiliate and one of Japan's largest audit firms. In May 2006, the Japanese Financial Services Agency (FSA) suspended ChuoAoyama for two months for its role in the Kanebo fraud. This unprecedented action followed a series of events that seriously damaged ChuoAoyama's reputation. We use these events to provide evidence on the importance of auditors' reputation for quality in a setting where litigation plays essentially no role. Around one quarter of ChuoAoyama's clients defected from the firm after its suspension, consistent with the importance of reputation. Larger firms and those with greater growth options were more likely to leave, also consistent with the reputation argument. Data Availability: All data in the paper are publicly available from the sources described in the text.

scholarly journals PENGARUH FEE AUDIT, AUDIT TENURE, ROTASI AUDIT DAN REPUTASI AUDITOR TERHADAP KUALITAS AUDIT

EkoPreneur ◽  
2019 ◽  
Vol 1 (1) ◽  
pp. 50
Author(s):  
Listiya Ike Purnomo ◽  
Jihan Aulia
Keyword(s):  
Logistic Regression ◽  
Regression Analysis ◽  
Real Estate ◽  
Analytical Method ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Audit Fees ◽  
Audit Fee ◽  
Auditor Reputation

This study aims to empirically examine the effect of audit fees on audit quality, the effect of audit tenure on audit quality, the effect of audit rotation on audit quality, and the effect of auditor reputation on audit quality. The population of this study is property and real estate companies listed on the Indonesia Stock Exchange (IDX) in 2013-2017. The research sampling technique used purposive sampling. The research samples obtained were as many as 25 property and real estate companies in 2013-2017. The analytical method used is logistic regression analysis. The results based on partial hypothesis testing indicate that audit fees affect audit quality and audit tenure affect audit quality. While audit rotation does not affect audit quality and auditor reputation does not affect audit quality. Keywords: Audit Quality, Audit Fee, Audit Tenure, Audit Rotation and Auditor Reputation

scholarly journals Audit Fee, Audit Tenure, Auditor’s Reputation, and Audit Rotation on Audit Quality

2020 ◽  
Vol 5 (1) ◽  
pp. 61-70
Author(s):  
Agus Endro Suwarno ◽  
Yayi Bely Anggraini ◽  
Dewita Puspawati
Keyword(s):  
Logistic Regression ◽  
Regression Analysis ◽  
Logistic Regression Analysis ◽  
Audit Quality ◽  
Stock Exchange ◽  
Statistic Analysis ◽  
Purposive Sampling ◽  
Audit Fee ◽  
Food And Beverage ◽  
Auditor Reputation

This study aimed to examine the effect of audit fee, audit tenure, audit rotation and auditor reputation on the audit quality in food and beverage companies listed in Indonesian Stock Exchange of 2014-2018. Population of the research is 90 food an beverage companies listed in Indonesian Stock Exchange of 2014-2018. Sample was taken by using purposive sampling, namely sampling with certain consideration. Based on the criteria, data sample of 104 food and beverage companies for period of three years were obtained, so that sample was 49 data. The data was analyzed by using descriptive statistic analysis and logistic regression analysis. The result shows that audit fee, audit tenure, audit rotation and auditor reputation have no influences to the audit quality. Keywords: audit fee, audit tenure, audit rotation, auditor reputation, audit quality

scholarly journals The Effect Of Audit Rotation, Audit Tenure And Auditor Reputation On Audit Quality With Profitability As Moderating Variable

2022 ◽  
Vol 7 (1) ◽  
pp. 25-31
Author(s):  
Mia Austina Anggraini ◽  
Sigit Sanjaya ◽  
Yamasitha Yamasitha ◽  
Yulasmi Yulasmi
Keyword(s):  
Logistic Regression ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Purposive Sampling ◽  
Insignificant Effect ◽  
Manufacturing Company ◽  
Auditor Reputation

This study aims to determine the effect of Audit Tenure, Audit Committee and Auditor Reputation on Audit Quality with Profitability as a Moderation variable. The sample used is a manufacturing company listed on the Indonesia Stock Exchange (BEI) 2015-2019. In determining the sample using purposive sampling method.The data used are secondary data and the method of analysis used is logistic regression analysis.The results showed that partially Audit Rotation has a positive and significant effect on Audit Quality with a significant value of 0,012. Partially the Audit Tenure has a positive and insignificant effect on Audit Quality with a significant value of 0,346. Partially Auditor Reputation has a positive and significant effect on Audit Quality with a significant value of 0,028. Partially Audit Rotation has a positive and significant effect on Audit Quality with Profitability as a moderating variable with a insignificant value of 0,655. Partially the Audit Tenure has a positive and significant effect on Audit Quality with Profitability as a moderating variable with a insignificant value of 0,720. Partially, Auditor Reputation has a positive and significant effect on Audit Quality with Profitability as a moderating variable with a significant value of 0,000. Simultaneously the Audit Tenure, Audit Committee and Auditor Reputation have a positive and significant effect on Audit Quality with profitability as a moderating variable with a significant value of 0,003.

Contests with a constrained choice set of effort

2020 ◽  
Vol 196 ◽  
pp. 109559
Author(s):  
Doron Klunover ◽  
John Morgan
Keyword(s):  
Constrained Choice ◽  
Choice Set
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