Auditor Switching on Banking Companies Listed in Indonesia Stock Exchange

  • Sri Darma Setya Dewi Faculty of Economics and Business, Universitas Mahasaraswati Denpasar
  • Ni Nyoman Ayu Suryandari Faculty of Economics and Business, Universitas Mahasaraswati Denpasar
  • Anak Agung Putu Gede Bagus Arie Susandya Faculty of Economics and Business, Universitas Mahasaraswati Denpasar

Abstract

Auditor switching is the alternation of the public accounting firm
that is performed by a company. The purpose of auditor switching is to maintain the independence of an auditor in order to produce an objective client financial report. The regulation of auditor independence in Indonesia is stipulated by Government Regulation No. 20 of 2015 about Public Accountant Practice. This research was aimed to examine and find the influence of management turnover, financial distress, the size of public accountant firms, the changes percentage of ROA (Return of Assets) and the size of client companies towards banking companies listed in Indonesia Stock Exchange period 2017 -2019 empirically. The sample selection of this research is using purposive sampling. A total of 40 finance companies are used as samples. Data analysis technique used for this study is logistic regression analysis and processed by the SPSS application program for windows. The result of this study indicates that the size of public accounting firms has a negative effect on auditor switching. Meanwhile, management turnover, financial distress, the changes percentage of ROA and size of client company do not affecting auditor switching 

Published
2020-11-30