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The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies

Received: 24 September 2020     Accepted: 9 November 2020     Published: 19 November 2020
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Abstract

This study aims to examine the effect of the size of the public accounting firm, change in management, audit opinion, and financial distress on auditor switching at companies listed on the Indonesia Stock Exchange (IDX) selected by using the purposive sampling method. Secondary data used in this study were taken from published annual reports through documentation and literature study methods. Infrastructure, utility, and transportation sector companies are the population in this study. The total number of infrastructure, utility, and transportation sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2018 in 181 companies. However, the data sample used is as many as 39 companies with an observation time of three years (2016-2017) with a population of 117 companies according to the criteria in this study. Logistic regression analysis is an analytical technique used for this study assisted by Microsoft Excel 2013 and IMB SPSS Statistic 25. The results of the study indicate that the size of the public accounting firm, audit opinion, and financial distress did not have a significant effect on auditor switching. Meanwhile, management changes have a significant effect on auditor switching.

Published in Journal of Finance and Accounting (Volume 8, Issue 6)
DOI 10.11648/j.jfa.20200806.12
Page(s) 257-265
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Auditor Switching, Financial Distress, Audit Opinion, Management Change, and Public Accounting Firm Size

References
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[2] Alisa, A. I., Intan, A. R. D., dan Fradini, B. (2019). “The Effect of Audit Opinion, Change of Management, Financial Distress, and Size of A Public Accounting Firm On Auditor switching”. Jurnal Akuntansi Trisakti, 6 (1), 55-68. ISSN: 2339-0832.
[3] Arens dan Loebbecke J. K. (2003). “Auditing; Pendekatan Terpadu Buku 1 dan 2 Edisi Ketiga”. Jakarta: Salemba Empat.
[4] Arsih, L., dan Anisyukrillah, I. (2015). “Pengaruh Opini Going Concern, Ukuran Kantor Akuntan Publik, dan Profitabilitas terhadap Auditor Switching”. Accounting Analysis Journal. Vol. 4, No. 3.
[5] Damayanti., Widaryanti., Wahyuningsih, P. (2019). “Analisis Faktor-Faktor yang Mempengaruhi Auditor switching di Indonesia”. Prosiding Mahasiswa Seminar Nasional Unimus, Vol. 2. ISSN: 2654-766X.
[6] Darmayanti, N. (2017). ”The effect of audit opinion, financial distress, client size, management turn over and kantor akuntan publik size on Auditor switching”. Journal of Economics, Business, and Accountancy Ventura, 20 (2), hlm. 237-248.
[7] Faradila, Y., dan M. Rizal, Y. (2016). “Pengaruh Opini Audit, Financial Distress, dan Pertumbuhan Perusahaan Klien terhadap Auditor Switching” (Studi Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia tahun 2010-2014)”. Jurnal Ilmiah Mahasiswa Ekonomi Akuntansi (JIMEKA), Vol. 1 No. 1, hlm. 81-100.
[8] Harvianto, Bayu P. (2015). “Faktor-Faktor yang Mempengaruhi Pergantian Kantor Akuntan Publik (Auditor Switchig)”. Jurnal Faculty of Economic Riau University.
[9] Hidayati, K., dan Dyah, E. S. J. (2019). Auditor Switching: “Faktor-Faktor yang Mempengaruhi (Studi Empiris pada perusahaan Real Estate dan Properti di Indonesia)”. Jurnal Ekonomi STIE H Agus Salim Bukittinggi, Vol. 22 No. 1. E-ISSN: 2684-9127.
[10] Ikatan Akuntan Indonesia. (2013).”Standar Profesional Akuntan Publik”. Jakarta: Salemba.
[11] Jensen, Michael C., dan Meckling, William H. (1976). “Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure”. Journal of Financial Economics, Vol. 3 No. 4, hlm. 305-360.
[12] Kristini, D. S., dan Nahumury, J. (2014). “The effect of public accounting firm size, financial distress, institutional ownership, and management change on the Auditor switching in manufacturing companies listed in Indonesia Stock Exchange”. The Indonesian Accounting Review, 4 (2), hlm. 185-194.
[13] L, AlAzhar. (2015). “Influence of Financial Distress, Management Turnover and Audit Opinion to Auditor switching (Empirical Study on Manufacturing Companies Listed on The BEI During 2011-2013 Period”). Research Journal of Finance and Accounting, 6 (24). ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online).
[14] Permatasari, R., & Hotman, T. (2016). “Analisis Faktor-Faktor yang Berpengaruh Terhadap Auditor switching”. Jurnal Informasi, Perpajakan, Akuntansi dan Keuangan Publik vol. 11 No. 1.
[15] Rahmawati, D., Deannes, I., dan Siska, P. Y. (2017). “Pengaruh Pergantian Manajemen, Opini Audit, Pertumbuhan Perusahaan, dan Financial Distress Terhadap Auditor switching (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2010-2015)”. e-Proceeding of Management, 4 (2), 1715. ISSN: 2355-9357.
[16] Sa’adah, K., dan Kartika, A. (2018). “Faktor-Faktor yang Mempengaruhi Perusahaan Melakukan Auditor switching (Studi Empiris pada Perusahaan Manufaktur di BEI Tahun 2015-2016”). Dinamika Akuntansi, Keuangan dan Perbankan, 7 (2), 132-146. ISSN: 2656-4955 (media online): 2656-8500 (media cetak).
[17] Sholihat, Walmi, R., Adri S. S., dan Pipin Kurnia. (2014). “Analisis Faktor yang Mempengaruhi Perpindahan kantor akuntan publik di Indonesia (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2010-2012)”. JOM FEKOM, 1 (2).
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Cite This Article
  • APA Style

    Firda Farhany Dimyati, Wahyu Ari Andrianto, Retna Sari. (2020). The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies. Journal of Finance and Accounting, 8(6), 257-265. https://doi.org/10.11648/j.jfa.20200806.12

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    ACS Style

    Firda Farhany Dimyati; Wahyu Ari Andrianto; Retna Sari. The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies. J. Finance Account. 2020, 8(6), 257-265. doi: 10.11648/j.jfa.20200806.12

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    AMA Style

    Firda Farhany Dimyati, Wahyu Ari Andrianto, Retna Sari. The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies. J Finance Account. 2020;8(6):257-265. doi: 10.11648/j.jfa.20200806.12

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  • @article{10.11648/j.jfa.20200806.12,
      author = {Firda Farhany Dimyati and Wahyu Ari Andrianto and Retna Sari},
      title = {The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies},
      journal = {Journal of Finance and Accounting},
      volume = {8},
      number = {6},
      pages = {257-265},
      doi = {10.11648/j.jfa.20200806.12},
      url = {https://doi.org/10.11648/j.jfa.20200806.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200806.12},
      abstract = {This study aims to examine the effect of the size of the public accounting firm, change in management, audit opinion, and financial distress on auditor switching at companies listed on the Indonesia Stock Exchange (IDX) selected by using the purposive sampling method. Secondary data used in this study were taken from published annual reports through documentation and literature study methods. Infrastructure, utility, and transportation sector companies are the population in this study. The total number of infrastructure, utility, and transportation sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2018 in 181 companies. However, the data sample used is as many as 39 companies with an observation time of three years (2016-2017) with a population of 117 companies according to the criteria in this study. Logistic regression analysis is an analytical technique used for this study assisted by Microsoft Excel 2013 and IMB SPSS Statistic 25. The results of the study indicate that the size of the public accounting firm, audit opinion, and financial distress did not have a significant effect on auditor switching. Meanwhile, management changes have a significant effect on auditor switching.},
     year = {2020}
    }
    

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    AU  - Firda Farhany Dimyati
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    N1  - https://doi.org/10.11648/j.jfa.20200806.12
    DO  - 10.11648/j.jfa.20200806.12
    T2  - Journal of Finance and Accounting
    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
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    EP  - 265
    PB  - Science Publishing Group
    SN  - 2330-7323
    UR  - https://doi.org/10.11648/j.jfa.20200806.12
    AB  - This study aims to examine the effect of the size of the public accounting firm, change in management, audit opinion, and financial distress on auditor switching at companies listed on the Indonesia Stock Exchange (IDX) selected by using the purposive sampling method. Secondary data used in this study were taken from published annual reports through documentation and literature study methods. Infrastructure, utility, and transportation sector companies are the population in this study. The total number of infrastructure, utility, and transportation sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2018 in 181 companies. However, the data sample used is as many as 39 companies with an observation time of three years (2016-2017) with a population of 117 companies according to the criteria in this study. Logistic regression analysis is an analytical technique used for this study assisted by Microsoft Excel 2013 and IMB SPSS Statistic 25. The results of the study indicate that the size of the public accounting firm, audit opinion, and financial distress did not have a significant effect on auditor switching. Meanwhile, management changes have a significant effect on auditor switching.
    VL  - 8
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Author Information
  • Fakultas Ekonomi dan Bisnis, University of Pembangunan Nasional Veteran Jakarta, Jakarta, Indonesia

  • Fakultas Ekonomi dan Bisnis, University of Pembangunan Nasional Veteran Jakarta, Jakarta, Indonesia

  • Fakultas Ekonomi dan Bisnis, University of Pembangunan Nasional Veteran Jakarta, Jakarta, Indonesia

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