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IJSTR >> Volume 8 - Issue 5, May 2019 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Auditor Switching Behavior In LQ45 Companies In Indonesia

[Full Text]



Andreas, Enni Savitri



Auditor Switching, Audit Opinion, Public Accounting Firm Size, Management Changes



Auditor switching is a management action to switch the most recent company auditor. The management of public companies listed on the Indonesia Stock Exchange are known to use auditor switching. There are some reasons that encourage management of public companies to make auditor changes. These include audit opinions, the size of public accounting firms and changes in management. The study was conducted on companies that meet criteria of LQ45 index, and this companies are recalculated twice a year by Indonesian Stock Exchange research and development department. Based on the sample selection criteria a sample of 33 companies was obtained. Data analysis used logistic regression analysis. The results of the study indicate that audit opinions and management changes had no effect on auditor switching, but the size of the public accounting firm was evidently influence the decisions of the public companies’ management to implement an auditor switch.



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