FIRMS AND AUDITEE CHARACTERISTICS ON AUDITOR SWITCHING

Dian Sulistyorini

Abstract


This study examines determine the factors affecting the company in Indonesia to auditor switching. The variables used in this study are size of the firm, client size, client growth, board size, independent directors and audit committees, and the percentage change in ROA. This study uses the financial statement companies listed in Indonesia Stock Exchange (IDX) for period of 2009-2011. Data collection method used in this research is purposive sampling, the sample is 30 companies. The hypotheses was tested using logistic regression analysis. The results show size of the firm and an independent commissioner influence the auditor switching. While, client size, client growth, corporate governance (board size, board size, and the audit committee), and the percentage change in ROA do not affect the company's decision to do the switching auditors. The result of hypothesis testing support the previous finding Chadegani et al. (2011), Sinason et al. (2001) and Yanan et al. (2013).

Keywords


independence, auditor switching, mandatory, voluntary, corporate governance

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