Effect of Audit Opinion, Company Size, Financial Distress and Return on Assets on Auditor Switching
Bambang Leo Handoko1, Felix Haryanto2
1Bambang Leo Handoko*, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.
2Felix Haryanto, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia.
Manuscript received on November 12, 2019. | Revised Manuscript received on 21 November, 2019. | Manuscript published on December 10, 2019. | PP: 4249-4254 | Volume-9 Issue-2, December 2019. | Retrieval Number: B6358129219/2019©BEIESP | DOI: 10.35940/ijitee.B6358.129219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Every company that goes public or has already listed on the stock exchange must first be audited financial statements before publishing. Auditors who audit often change, both mandatory and voluntary. The researcher wants to know what causes the company to make auditor changes. This study aims to determine the effect of audit opinion, company size, financial distress and return on assets for auditor switching. This study conducted on manufacturing companies listed in Indonesia Stock Exchange period year 2015-2017. A total of 36 manufacturing companies are used as sample by using the purposive sampling method. Data analysis technique used is logistic regression analysis with SPSS version 25. Auditor switching is measured by the switch of audit partner. The result concluded that audit opinion effect on auditor switching, whereas the company size, financial distress and return on assets have no effect on auditor switching.
Keywords: Audit Delay, Profitability, Leverage, Audit Opinion, Reputation of Firm
Scope of the Article: Industrial, Financial and Scientific Applications of All Kind