Audit firm rotation and audit quality: Comparison before vs after the elimination of audit firm rotation regulations in Indonesia
| Autor: | Eka Sari Ayuningtyas, Dyah Ayu Larasati, Inas Aisyah Widyaningsih, Agus Widodo Mardijuwono, Iman Harymawan |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: |
Organizational Behavior and Human Resource Management
HF5001-6182 Strategy and Management Accounting audit Audit Management Science and Operations Research Affect (psychology) audit quality health services administration 0502 economics and business ddc:650 Management. Industrial management Business Business and International Management Marketing business.industry 05 social sciences HD28-70 Quality audit audit firm rotation Business Management and Accounting (miscellaneous) 050211 marketing Rotation (mathematics) 050203 business & management |
| Zdroj: | Cogent Business & Management, Vol 6, Iss 1 (2019) |
| Popis: | This paper examines whether the changes in audit rotation policy affect the relationship between audit firm rotation and audit quality in Indonesia. This study uses 2,403 observations from 371 firms listed on the IDX for the period 2010–2017. This study uses Ordinary Least Squares regression to test the hypothesis. We find that, in the mandatory audit rotation period (pre-period), there is no significant association between audit rotation and audit quality. Interestingly, we find a positive relationship between audit rotation and audit quality in the voluntary audit rotation (post-period). Our result implies that voluntary audit rotation without any coercive regulation is more effective in improving audit quality. This research provides an insight to policy makers that eliminating the regulation of audit firm rotation is an effective decision to enhance audit quality. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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