The Effect of Financial Distress, Management Turnover, Audit Opinion and Reputation of Public Accounting Firm to Auditor Switching

Abstract

This research aimed to determine the effect of financial distress, management turnover, audit opinion, and reputation of public accounting firm to uditor switching in  all companies registered in Indonesia Stock Exchange during the period of 2014 - 2017. Methodology Approach – This research uses Logistic Regression analysis. This research uses 260 companies with an observation period of 4 years as the samples and the test results show that financial distress has an effect on auditor switching with significant value of 0.049 <0.05, management turnover has an effect on  auditor switching with significant value ​​of 0.03 <0.05, audit opinion has an affect on  auditor switching with significant value 0.021 <0.05 and the reputation of public accounting firm on auditor switching with significant value 0,034 <0,05. The results presented in this research have important implications on audit profession and regulators in Indonesia.

Keywords: Financial Distress, Management Turnover, Audit Opinion And Reputation of Public Accounting Firm.

DOI: 10.7176/RJFA/10-22-11

Publication date: November 30^th 2019