The effect of audit tenure, audit rotation, accounting firm size, and client’s company size on audit quality

Desi Frida Priyanti, Nurul Hasanah Uswati Dewi

Abstract


This study aimed to examine the effect of audit tenure, audit rotation, public accounting firm size, and client’s company size on audit quality. Audit quality in this study is peroxided by earnings quality which is measured by the level of discretionary accruals of modified jones model, while audit tenure is measured by counting the year in which the same auditors have made work engagement with the auditee. Audit rotation and public accounting firm size are measured by using dummy variable, while client’s company size is measured by using the growth of total assets. The population in this study consists of public companies, especially the telecommunications and retail sectors service companies listed in Indonesia Stock Exchange in the period 2012-2017. Sampling technique used is purposive sampling method. The total of the sample is 30 companies. After data observation, there are 73 samples included as outlier and should be excluded from samples of observation. So, the final data used are 107 data. Multiple linear regressions analysis is used as analysis technique. The empirical results of this study show that audit tenure and public accounting firm size have no effect on audit quality; audit rotation has negative and significant effect on audit quality; and client’s company size has positive and significant effect
on audit quality.


Keywords


Audit tenure, audit rotation, public accounting firm size, client’s company size, audit quality

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References


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Ardani, Sarifah V. 2017. “Pengaruh Tenure Audit, Rotasi Audit, Audit Fee terhadap Kualitas Audit dengan Komite Auditqar sebagai Variabel

Moderasi”. Jurnal Akuntansi. Vol 6 No. 1, p. 1-12.

Brigham, Eugene F. dan Houston, Joel F. 2011. Dasar-dasar Manajemen Keuangan Terjemahan. Edisi 10. Jakarta: Salemba Empat.

Business News. (2017, 2 Oktober). SkandalAkuntansi Jangan Berulang, accessed on March 29, 2018 from https://

www.b usinessnews.id/expertarticle/10948/skandal-akuntansijangan-berulang.html.

Febrianto, Rahmat. 2009. “Pergantian Auditor dan Kantor Akuntan Publik”,(Online). (www.rfebrianto.blogspot.co.id) accessed on March 21, 2018.

Febriyanti, Ni Made D. dan Mertha, I Made.2014. “Pengaruh Masa Perikatan Audit, Rotasi KAP, Ukuran Perusahaan Klien, dan Ukuran

KAP pada Kualitas Audit.” E-Jurnal Akuntansi Universitas Udayana. ISSN:2302-8556, p. 503-518.

Gonzales-Diaz, Belen et al. 2013. “Auditor Tenure and Audit Quality in Spanish State-Owned Foundations”. Elsevier Spanish review. Vol 18 No. 2, p. 115-126.

Gultom, Elizabeth R. dan Fitriany. 2013.“Pengaruh Tenure Audit dan Rotasi Audit terhadap Kualitas Audit dengan Ukuran Kantor Akuntan

Publik sebagai Variabel Moderasi”.Simposium Nasional Akuntansi XVI.Manado, 25-28 September, p. 5436-5472.

Herianti, Eva dan Suryani, Arna. 2016.“Pengaruh Kualitas Auditor, Audit Delay dan Audit Tenure terhadap Kualitas Audit Perbankan yang Terdaftar di BEI Periode 2012-2014”.

Prosiding Seminar Nasional Indocompac.Jakarta., p. 416-425.

Ishak, Febrian A. P., Perdana, Halim D., dan Widjajanto, Anis. 2014.”Pengaruh Rotasi Audit, Workload, Spesialisasi terhadap Kualitas Audit pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia pada tahun 2009-2013” Jurnal Organisasi dan Manajemen. Vol. 11 No. 02, p. 183-194.

Kartikasari, Dinda Ayu. 2012. Pengaruh Tenure dan Rotasi Audit Terhadap Kualitas Audit dengan Beberapa Pengukuran Discretionary Accruals. Jakarta. Universitas Indonesia: Salemba Empat.

Kurniasih, Margi dan Rohman, Abdul.2014. “Pengaruh Fee Audit, Audit Tenure, dan Rotasi Audit Terhadap Kualitas Audit”. Diponegoro Journal of Accounting. Vol 3 No. 3, p. 1-10.

Nadia, Nurul F. 2015. “Pengaruh Tenur KAP, Reputasi KAP, dan Rotasi KAP terhadap Kualitas Audit”. Jurnal Akuntansi Bisnis. Vol. XIII No. 26 Maret, p. 113-130.




DOI: http://dx.doi.org/10.14414/tiar.v9i1.1528

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