Lowballing Reviewed from Auditor Reputation Factors, Audit Tenure, and Its Impact on Audit Opinion (Case Study at Public Accounting Firm of West Jakarta and South Jakarta)

Abstract

This study aims to examine the influence of auditor reputation and audit tenure on lowballing and its impact on audit opinion. This study used a sample of 100 respondents who worked as auditors at Public Accounting Firm in the area of ​​West Jakarta and South Jakarta registered in Directory of Public Accounting Firm 2016 published by Indonesian Institute of Certified Public Accountants (IAPI). This study uses primary data with questionnaires. Auditors who participated in this study include junior auditors, senior auditors, managers and partners who carry out auditing work. The analytical method used to test the hypothesis is path analysis. The results showed that the direct effect of Auditor's Reputation and Audit Tenure on Audit Opinion showed significant results. However, the indirect effect for each independent variable is different. Audit tenure indicates that there is an indirect effect through Lowballing while for Auditor Reputation there is no indirect effect through Lowballing.

Keywords: Auditor Reputation, audit tenure, lowballing, Audit Opinion, path analysis.