EFFECTS OF COMPANY SIZE, AUDITOR SWITCHING AND AUDITOR FEE ONAUDITOR SWITCHING
Abstract
Abstract
Auditor independence is the key for an auditor to assess the fairness of the audited financial statements however, the association of a company with a public accounting firm for a long time can affect the auditor's independence so as to allow for a certain relationship between the public accounting firm and the company being audited, but if it is too frequent changing the independent auditor will increase the company's audit fees and indicate that the public accounting firm is not professional. There are 10 basic and chemical industry companies that have switched auditors more than once during the 2017-2021 period. The purpose of this research is to examine and analyze the effect of firm size, Change of Management and audit fees for Auditor Switching in basic and chemical industry companies listed on the Indonesia Stock Exchange (IDX) in 2017-2021. The method used in this research is quantitative research, a purposive sampling technique was used to obtain a sample size of 37 companies or 185 data in five years. The data analysis technique used is logistic regression with SPSS version 25. Based on the findings of this study (1) company size has no effect on auditor switching, (2) management changes have no effect on auditor switching, (3) audit fees have no effect on auditor switching. purposive sampling technique was used to obtain a sample size of 37 companies or 185 data in five years. The data analysis technique used is logistic regression with SPSS version 25. Based on the findings of this study (1) company size has no effect on auditor switching, (2) management changes have no effect on auditor switching, (3) audit fees have no effect on auditor switching. purposive sampling technique was used to obtain a sample size of 37 companies or 185 data in five years. The data analysis technique used is logistic regression with SPSS version 25. Based on the findings of this study (1) company size has no effect on auditor switching, (2) management changes have no effect on auditor switching, (3) audit fees have no effect on auditor switching.
Keywords: company size, management change, and audit fees, auditor switching
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