Complex Condition Regarding Voluntary and Mandatory Auditor Switching

Bambang Leo Handoko

In order to maintain independence between auditor and client, work engagement or auditor tenure with clients is limited. After a few years, the company must change its auditor. The purpose of our study was to statistically examine what factors influenced auditor switching. Our research uses secondary data from companies listed on the Indonesian stock exchange. The sectors we chose were infrastructure, utility and transportation. We use a sampling technique using non probability sampling, criteria. The analytical method used is logistic regression analysis, because our dependent variable is a dummy variable. Our result show that audit firm size and audit opinion have significant influence on auditor switching, while management change, audit delay, percentage change of ROA and financial distress do not have significant influence.

Volume 12 | Issue 6

Pages: 2788-2794

DOI: 10.5373/JARDCS/V12I6/S20201240