Does Audit Fee Moderate Influence of Audit Tenure and Auditor Switching to Acceptance of Going Concern Audit Opinion?
DOI:
https://doi.org/10.61841/q0q64s47Keywords:
Auditor, Swiching, , Financial, Distress, Delay, Opinion, ROAAbstract
In examining the financial statements the auditor must assess the ability of the company for the survival of its business. If it turns out there is potential for bankruptcy, the auditor will give a going concern audit opinion. The problem is that not all clients want to accept that opinion. Clients who do not want to receive, are disputed, sometimes choose to replace the auditor the following year. Our study tries to provide empirical evidence testing whether audit fees can moderate audit tenure and auditor switching to the going concern audit opinion. Our research is quantitative research, we use secondary data, namely companies going public in the manufacturing sector for the period of 2016 - 2018. Our data analysis method is path analysis. Our results state that audit tenure and auditor switching do not significantly influence the acceptance of going concern audit opinion. While the audit fee does not moderate the audit tenure but moderates the auditor switching of receiving going concern audit opinion
Downloads
References
[1] X. Tian, G. F. Udell, and X. Yu, “Disciplining delegated monitors: When venture capitalists fail to prevent fraud by their IPO firms,” J. Account. Econ., vol. 61, no. 2–3, pp. 526–544, 2016.
[2] C. K. Lau and K. W. Ooi, “A case study on fraudulent financial reporting: Evidence from Malaysia,” Account. Res. J., 2016.
[3] B. L. Handoko, E. Hendra, and Sanjwi, “The Influence of Rentability , Current Ratio , Solvency on Bankruptcy
Audit Risk in Manufacture Sector,” Test Eng. Manag., vol. 83, pp. 2828–2835, 2020.
[4] S. Choi, Y. S. Choi, F. A. Gul, and W. J. Lee, “The impact of mandatory versus voluntary auditor switches on stock liquidity: Some Korean evidence,” Br. Account. Rev., vol. 47, no. 1, pp. 100–116, 2015.
[5] L. E. DeAngelo, “Auditor size and audit quality,” J. Account. Econ., vol. 3, no. 3, pp. 183–199, 1981.
[6] L. S. Bhaskar, P. E. Hopkins, and J. H. Schroeder, “An Investigation of Auditors’ Judgments When Companies Release Earnings Before Audit Completion,” J. Account. Res., vol. 57, no. 2, pp. 355–390, 2019.
[7] H. Kim, H. Lee, and J. E. Lee, “Mandatory audit firm rotation and audit quality,” J. Appl. Bus. Res., 2015.
[8] D. Lianto, “Determinan Voluntary Auditor Switching : Studi Empiris Pada Perusahaan Manufaktur Di Bursa Efek Indonesia,” Parsimonia, 2017.
[9] A. A. Chadegani, Z. M. Mohamed, and A. Jari, “The Determinant Factors of auditor switch among companies listed on Tehran Stock Exchange,” Int. Res. J. Financ. Econ., 2011.
[10] R. Fontaine, S. Ben Letaifa, and D. Herda, “An interview study to understand the reasons clients change audit firms and the client’s perceived value of the audit service,” Curr. Issues Audit., vol. 7, no. 1, 2013.
[11] E. K. Muliawan, “Pengaruh Ukuran Kantor Akuntan Publik, Auditor Switching Dan Audit Tenure Pada Kualitas Audit,” E-Jurnal Akunt., vol. 21, pp. 534–561, 2017.
[12] D. Lee and I. M. Sukartha, “Fee Audit Sebagai Pemoderasi Pengaruh Auditor Switching Dan Audit Tenure Pada Kualitas Audit,” E-Jurnal Akunt. Univ. Udayana, vol. 18, no. 2, pp. 1455–1484, 2017.
[13] Fierda, H. Gunawan, and P. Purnamasari, “Pengaruh Audit Rotation dan Audit Tenur terhadap Kualitas Audit dengan Fee Audit Sebagai Variabel Pemoderasi,” Prosding Ilmu Ekon., pp. 1–10, 2015.
[14] K. Ciptana Putri and N. Rasmini, “Fee Audit Sebagai Pemoderasi Pengaruh Auditor Switching Pada Kualitas Audit,” E-Jurnal Akunt., vol. 16, no. 3, pp. 2017–2043, 2016.
[15] I. Ghozali, “Moderated Structural Equation Modeling,” in Model persamaan struktural. Konsep dan aplikasi dengan program AMOS 19.0, 2011.
[16] L. Y. Rahmina and S. Agoes, “Influence of Auditor Independence, Audit Tenure, and Audit Fee on Audit Quality of Members of Capital Market Accountant Forum in Indonesia,” Procedia - Soc. Behav. Sci., 2014.
[17] C. S. Lennox, X. Wu, and T. Zhang, “Does mandatory rotation of audit partners improve audit quality?,”
Account. Rev., 2014.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
