The role of auditor opinion in moderating the effect of financial distress on auditor switching in the infrastructure, utility, and transportation sub-sectors

Dedi Heru Prihandoko; Supriyati Supriyati

doi:10.14414/tiar.v10i1.2033

Vol. 10 No. 1 (2020), Articles

Vol. 10 No. 1 (2020)

The role of auditor opinion in moderating the effect of financial distress on auditor switching in the infrastructure, utility, and transportation sub-sectors

Articles

DOI: 10.14414/tiar.v10i1.2033

Published 2020-02-26

Dedi Heru Prihandoko⁺⁻
Supriyati Supriyati⁺⁻

Dedi Heru Prihandoko

STIE Perbanas Surabaya

Supriyati Supriyati

ID Scopus 57202824127, STIE Perbanas Surabaya

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Keywords

Growth
Financial Distress
Auditor Switching
Audit Opinion

How to Cite

Prihandoko, Dedi Heru, and Supriyati Supriyati. “The Role of Auditor Opinion in Moderating the Effect of Financial Distress on Auditor Switching in the Infrastructure, Utility, and Transportation Sub-Sectors”. The Indonesian Accounting Review, vol. 10, no. 1, Feb. 2020, pp. 95-104, https://doi.org/10.14414/tiar.v10i1.2033.

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Abstract

The purpose of this study is to analyze the effect of company growth and financial distress on auditor switching with going concern audit opinion as a moderating variable. The data used in this research are secondary data obtained from Indonesia Stock Exchange. The sample used in this study is 25 infrastructure, utilities and transportation companies listed on the Indonesia Stock Exchange (IDX). The study period is 5 years (2013-2017). Sampling in this study is conducted using purposive sampling method. The analysis techniques used are descriptive analysis, logistic regression, and moderated regression analysis. The dependent variable used is auditor switching, while the independent variables are company growth and financial distress, with going concernÂ audit opinion as the moderating variable.Â The results show that company growth has no effect on auditor switching, financial distress has an effect on Auditor switching, going concern audit opinion has no affect and cannot moderate the effect of company growth on auditor switching, going concern audit opinion has an effect but cannot moderate the effect of financial distress on auditor switching.

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The role of auditor opinion in moderating the effect of financial distress on auditor switching in the infrastructure, utility, and transportation sub-sectors

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