Proceedings of the 3rd International Conference on Economics, Business and Economic Education Science, ICE-BEES 2020, 22-23 July 2020, Semarang, Indonesia

Research Article

The Effect of Company Size and Audit Opinion on Auditor Switching with Moderated by the Auditor's Reputation

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  • @INPROCEEDINGS{10.4108/eai.22-7-2020.2307882,
        author={Dhini  Suryandari and Fitriana Silva Dwiyanti},
        title={The Effect of Company Size and Audit Opinion on Auditor Switching with Moderated by the Auditor's Reputation},
        proceedings={Proceedings of the 3rd International Conference on Economics, Business and Economic Education Science, ICE-BEES 2020, 22-23 July 2020, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICE-BEES},
        year={2021},
        month={5},
        keywords={company size audit opinion auditor reputation auditor switching kap switching},
        doi={10.4108/eai.22-7-2020.2307882}
    }
    
  • Dhini Suryandari
    Fitriana Silva Dwiyanti
    Year: 2021
    The Effect of Company Size and Audit Opinion on Auditor Switching with Moderated by the Auditor's Reputation
    ICE-BEES
    EAI
    DOI: 10.4108/eai.22-7-2020.2307882
Dhini Suryandari1,*, Fitriana Silva Dwiyanti1
  • 1: Universitas Negeri Semarang, Indonesia
*Contact email: dhini.surya@mail.unnes.ac.id

Abstract

This study aims to examine the effect of company size and audit opinion on auditor switching with KAP turnover indicators and add auditor's reputation as a moderating variable. Population of this research is 39 mining companies listed on the Indonesia Stock Exchange (IDX) in 2015-2018. The sample selection is done using a purposive sample method and produces 125 samples are processed. Data analysis method that used in this study are descriptive statistics analysis and inferential statistics analysis with absolute difference test for moderation with IBM SPSS 21 software. The results showed that company size has no effect on auditor switching, while audit opinion has a significant negative effect on auditor switching. The auditor's reputation strengthens the influence of company size on auditor switching, but the auditor's reputation is unable to strengthen the effect of audit opinion on auditor switching. The conclusion is a good opinion will minimize the practice of auditor switching and the large company supported by a good auditor reputation also can minimize the practice of auditor switching.