THE FACTORS AFFECTING VOLUNTARY AUDITOR SWITCHING IN COMPANIES LISTED IN INDONESIA STOCK EXCHANGE
Publication Date : 01/05/2018
This research aims to analyze the factors that affect auditor switching on voluntary basis; those factors are audit opinion, Public Accounting Firm (KAP) size, management turnover, financial distress and company growth. This study employs a quantitative approach by observing public company financial report data and measuring the variables of research variables with numerical numbers. Results of this study shows that audit opinion, management turnover, financial distress, and company growth have no effect on voluntary auditor switching. While, Public Accounting Firm (KAP) size have a significant influence on voluntary auditor switching. Regarding to the limitation of this research, the researcher observes only a year of the public company reports. Regarding to the implication of this research, the researcher expect that this research can contribute as a research literature in the field of auditing and practically helping the stakeholder to unveil the factors affecting auditor replacement conducted by the auditee. This study uses several factors to be tested for its effect on auditor switching, auditor factors such as audit opinion and the Public Accounting Firm (KAP) size, corporate performance factors such as financial distress and company growth, and good governance factors such as management turnover.
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