Case Auditor Change in Indonesia

Authors

  • S Surtikanti Departemen Accounting, Universitas Komputer Indonesia, Indonesia
  • D S Saleh Department of Accounting, STIE DR. KHEZ Muttaqien, Purwakarta, Indonesia
  • Ali Jamaluddin Department of Accounting, STIE DR. KHEZ Muttaqien, Purwakarta, Indonesia

DOI:

https://doi.org/10.34010/icobest.v3i.201

Keywords:

Profitability, Company Financial Distress, Auditor Change

Abstract

This study aims to analyze the effect of profitability and corporate financial distress on auditor turnover in Indonesia. This study uses descriptive and verification methods with a quantitative approach. The population used in this study are 56 annual financial statements of Manufacturing Companies in the Pharmaceutical Sub-Sector which are listed on the Indonesia Stock Exchange. The results showed that profitability had a significant effect on auditor turnover. This shows that the profitability of a developed company has large funds to replace a better auditor. While the company's financial difficulties have no significant effect on auditor turnover, which means that the change of auditors will ensure the company's financial condition so that auditor changes will not be carried out when the company is in financial difficulty. The impact of this research, manufacturing companies can consider carefully in making decisions to change auditors.

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Published

2023-03-10

How to Cite

S Surtikanti, D S Saleh, & Ali Jamaluddin. (2023). Case Auditor Change in Indonesia. Proceeding of International Conference on Business, Economics, Social Sciences, and Humanities, 5, 685-690. https://doi.org/10.34010/icobest.v3i.201