The effect of auditor rotation, time pressure, and audit tenure on audit quality with auditor specialization as moderation variable: (empirical study of manufacturing companies listed on the Indonesia stock exchange in 2014-2018)

I Gusti Ayu Monika Intan Kirana; I Wayan Ramantha

doi:10.21744/irjmis.v7n3.931

Authors

I Gusti Ayu Monika Intan Kirana
monika.kirana@gmail.com
Faculty of Economics and Business, Udayana University (Unud), Denpasar, Indonesia
I Wayan Ramantha Faculty of Economics and Business, Udayana University (Unud), Denpasar, Indonesia

Keywords:

audit quality, audit tenure, auditor rotation, auditor specialization, time pressure

Abstract

The purpose of this study was to determine and obtain empirical evidence about the effect of auditor rotation, time pressure, and audit tenure on audit quality with auditor specialization as a moderating variable. This research was conducted at manufacturing companies listed on the Indonesia Stock Exchange in 2014-2018. The number of samples is 81 companies with the number of observations as many as 405 samples in 5 years, through the nonprobability method with a purposive sampling technique. This research analysis technique uses Moderate Regression Analysis (MRA). Based on the results of the analysis found that audit rotation does not affect audit quality. Time pressure influences audit quality. Audit tenure affects audit quality. The auditor's specialization does not affect audit quality.

Downloads

Download data is not yet available.

References

Andriani, N., & Nursiam, N. (2018). Pengaruh Fee Audit, Audit Tenure, Rotasi Audit Dan Reputasi Auditor Terhadap Kualitas Audit (Studi Empiris Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2013-2015). Riset Akuntansi dan Keuangan Indonesia, 3(1), 29-39. https://doi.org/10.23917/reaksi.v3i1.5559

Ardani, S. V. (2017). Pengaruh Tenure Audit, Rotasi Audit, Audit Fee terhadap Kualitas Audit dengan Komite Audit Sebagai Variabel Moderasi (Studi Pada Perusahaan Sektor Keuangan yang Terdaftar di Bei Tahun 2010 2014). Jurnal Akuntansi (Media Riset Akuntansi & Keuangan), 6(1), 1-12.

Arens, A. A., Elder, R. J., & Mark, B. (2012). Auditing and assurance services: an integrated approach. Boston: Prentice Hall.

Basuki, B., & Mahardani, K. Y. (2006). Pengaruh tekanan anggaran waktu terhadap perilaku disfungsional auditor dan kualitas audit pada kantor akuntan publik di Surabaya. Jurnal Manajemen, Akuntansi & Sistem Informasi, 6(2), 203-223.

Bhaskar, L. S., Krishnan, G. V., & Yu, W. (2017). Debt covenant violations, firm financial distress, and auditor actions. Contemporary accounting research, 34(1), 186-215. https://doi.org/10.1111/1911-3846.12241

Chi, W., Huang, H., Liao, Y., & Xie, H. (2009). Mandatory audit partner rotation, audit quality, and market perception: Evidence from Taiwan. Contemporary Accounting Research, 26(2), 359-391. https://doi.org/10.1506/car.26.2.2

Church, B. K., & Zhang, P. (2006). A model of mandatory auditor rotation. In CAAA 2006 Annual Conference Paper (pp. 07-08). https://dx.doi.org/10.2139/ssrn.874884

Crabtree, A. D., Brandon, D. M., & Maher, J. J. (2006). The impact of auditor tenure on initial bond ratings. Advances in Accounting, 22, 97-121. https://doi.org/10.1016/S0882-6110(06)22005-4

Deil, S. A. F. (2014). Enron Skandal Besar Perusahaan Energi Yang Cekik Investor.

Djamil, N. (2003). Faktor-Faktor yang mempengaruhi kualitas audit pada sektor publik dan beberapa karakteristik untuk meningkatkannya. Jurnal Akuntansi. STIE Nasional Banjarmasin.

Elder, R. J., Lowensohn, S., & Reck, J. L. (2015). Audit firm rotation, auditor specialization, and audit quality in the municipal audit context. Journal of Government & Nonprofit Accounting, 4(1), 73-100. https://doi.org/10.2308/ogna-51188

Firth, M., Rui, O. M., & Wu, X. (2012). How do various forms of auditor rotation affect audit quality? Evidence from China. The International Journal of Accounting, 47(1), 109-138. https://doi.org/10.1016/j.intacc.2011.12.006

Gietzmann, M. B., & Sen, P. K. (2002). Improving auditor independence through selective mandatory rotation. International Journal of Auditing, 6(2), 183-210. https://doi.org/10.1111/j.1099-1123.2002.tb00012.x

Gul, F. A., Fung, S. Y. K., & Jaggi, B. (2009). Earnings quality: Some evidence on the role of auditor tenure and auditors’ industry expertise. Journal of accounting and Economics, 47(3), 265-287. https://doi.org/10.1016/j.jacceco.2009.03.001

Hamid, A. (2013). Pengaruh Tenur KAP Dan Ukuran KAP Terhadap Kualitas Audit (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI). Jurnal Akuntansi, 1(1).

Herusetya, A. (2009). Pengaruh ukuran auditor dan spesialisasi auditor terhadap kualitas laba. Jurnal Akuntansi dan Keuangan Indonesia, 6(1), 46-70. http://dx.doi.org/10.21002/jaki.2009.03

Indriani, R., & Kusumaputra, A. D. (2017). Kualitas Laba: Implikasi dari Pengaruh Tenure Terhadap Kualitas Audit. E-Mabis: Jurnal Ekonomi Manajemen dan Bisnis, 17(1), 61-76. https://doi.org/10.29103/e-mabis.v17i1.51

Ishak, F. A. P., Perdana, H. D., & Widjajanto, A. (2015). Pengaruh Rotasi Audit, Workload, dan Spesialisasi Terhadap Kualitas Audit Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Pada Tahun 2009-2013. Jurnal Organisasi dan Manajemen, 11(2), 183-194.

Junaidi, J., Hartono, J., Suwardi, E., Miharjo, S., & Hartadi, B. (2016). Does auditor rotation increase auditor independence?. Gadjah Mada International Journal of Business, 18(3), 315-336. https://doi.org/10.22146/gamaijb.16988

Kesuma, I. B. G. P. W., & Dwirandra, A. (2019). Professional commitments and pressure of obedience in mediating on the effect of time budget pressure in quality audits. International Research Journal of Engineering, IT & Scientific Research, 5(1), 27-38. https://doi.org/10.21744/irjeis.v5n1.587

Kurniati, R. (2018). Peran Spesialisasi Industri Auditor Sebagai Pemoderasi Atas Pengaruh Audit Tenure Dan Reputasi Kantor Akuntan Publik Pada Kualitas Audit. Jurnal Ilmiah Professional Indonesia, 2(2), 53-68.

Kurniawansyah, D. (2017). Pengaruh Audit Tenure, Ukuran Auditor, Spesialisasi Audit dan Audit Capacity Stress Terhadap Manajemen Laba (Studi Empiris pada Perusahaan Manufaktur yang listed di BEI tahun 2010-2015). Jurnal Riset Akuntansi Dan Bisnis Airlangga, 1(1). http://dx.doi.org/10.31093/jraba.v1i1.4

Lambert, T. A., Jones, K. L., Brazel, J. F., & Showalter, D. S. (2017). Audit time pressure and earnings quality: An examination of accelerated filings. Accounting, Organizations and Society, 58, 50-66. https://doi.org/10.1016/j.aos.2017.03.003

Lee, D., & Sukartha, I. M. (2017). Fee Audit sebagai Pemoderasi Pengaruh Auditor Switching dan Audit Temure terhadap Kualitas Audit. E-Jurnal Akuntansi Universitas Udayana, ISSN, 2302-8556.

Lennox, C. (2005). Audit quality and executive officers’ affiliations with CPA firms. Journal of accounting and economics, 39(2), 201-231. https://doi.org/10.1016/j.jacceco.2003.12.002

Lestari, N., & Nedya, S. (2019). The effect of audit quality on tax avoidance. In International Conference On Applied Science and Technology 2019-Social Sciences Track (iCASTSS 2019). Atlantis Press. https://dx.doi.org/10.2991/icastss-19.2019.69

Lowensohn, S., Johnson, L. E., Elder, R. J., & Davies, S. P. (2007). Auditor specialization, perceived audit quality, and audit fees in the local government audit market. Journal of Accounting and Public Policy, 26(6), 705-732. https://doi.org/10.1016/j.jaccpubpol.2007.10.004

Maharani, A. P. (2014). Pengaruh Audit Tenure, Audit Fee, Rotasi Audit dan Spesialisasi Auditor Terhadap Kualitas Audit. Jurnal Ekonomi dan Keuangan. Fakultas Ekonomi dan Bisnis. Universitas Muhamadiyah Surakarta.

Nirmala, M. R. V., & Latrini, M. Y. (2017). Pengaruh Keahlian, Tekanan Ketaatan, Tekanan Waktu Terhadap Kualitas Audit Judgment Dengan Kompleksitas Tugas Sebagai Pemoderasi. E-Jurnal Akuntansi, 683-711.

Nizar, A. A. (2017). Pengaruh Rotasi, Reputasi dan Spesialisasi Auditor terhadap Kualitas Audit (Studi Empiris pada Perusahaan Manufaktur yang Listed di BEI). Kompartemen: Jurnal Ilmiah Akuntansi, 15(2). http://dx.doi.org/10.30595/kompartemen.v15i2.1877

Nugrahanti, Y., & Darsono, D. (2014). Pengaruh Audit Tenure, Spesialisasi Kantor Akuntan Publik dan Ukuran Perusahaan Terhadap Kualitas Audit (Studi Empiris Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2010–2012) (Doctoral dissertation, Fakultas Ekonomika dan Bisnis).

Nuratama, I. P. (2011). Pengaruh Tenur dan Reputasi Kantor Akuntan Publik pada Kualitas Audit dengan Komite Audit sebagai Variabel Moderasi. Universitas Udayana.

Pieters, R., & Warlop, L. (1999). Visual attention during brand choice: The impact of time pressure and task motivation. International Journal of research in Marketing, 16(1), 1-16. https://doi.org/10.1016/S0167-8116(98)00022-6

Rahadianto, N. A. (2012). Analisis pengaruh auditor spesialisasi industri, dewan komisaris, komite audit, dan penerapan PSAK 50/55 (revisi 2006) terhadap audit delay pada industri perbankan= Analyzing effect of the auditor specialization industry, board of commissioners, the audit committee, and application of PSAK 50/55 (revised 2006) on audit delay in banking industry.

Rahmina, L. Y., & Agoes, S. (2014). Influence of auditor independence, audit tenure, and audit fee on audit quality of members of capital market accountant forum in Indonesia. Procedia-Social and Behavioral Sciences, 164, 324-331. http://dx.doi.org/10.1016/j.sbspro.2014.11.083

Rosnidah, I. (2011). Analisis Dampak Motivasi Dan Profesionalisme Terhadap Kualitas Audit Aparat Inspektorat Dalam Pengawasan Keuangan Daerah (Studi Empiris Pada Pemerintah kabupaten Cirebon). PEKBIS (Jurnal Pendidikan Ekonomi Dan Bisnis), 3(02).

Senjaya, K., & Suprasto, B. (2016). Tingkat Spesialisasi Industri Auditor Sebagai Pemoderasi Pengaruh Ukuran Perusahaan Pada Audit Delay. E-Jurnal Akuntansi, 2013-2040.

Sinaga, D. M., & Ghozali, I. (2012). Analisis pengaruh audit tenure, ukuran KAP dan ukuran perusahaan klien terhadap kualitas audit (Doctoral dissertation, Fakultas Ekonomika dan Bisnis).

Sumarwoto, S. (2006). Pengaruh Kebijakan Rotasi KAP Terhadap Kualitas Laporan Keuangan (Doctoral dissertation, program Pascasarjana Universitas Diponegoro).

Suryo, M. (2017). Pengaruh time budget pressure dan risiko audit terhadap kualitas audit (survey pada auditor di Kantor Akuntan Publik di Bandung). Jurnal Riset Akuntansi dan Keuangan, 5(1), 1325-1336. https://doi.org/10.17509/jrak.v5i1.6757

Sweeney, B., & Pierce, B. (2004). Management control in audit firms. Accounting, Auditing & Accountability Journal. https://doi.org/10.1108/09513570410567818

Tjun, L. T., Marpaung, E. I., & Setiawan, S. (2012). Pengaruh kompetensi dan independensi auditor terhadap kualitas audit. Jurnal akuntansi, 4(1), 33-56. https://doi.org/10.28932/jam.v4i1.353

Wang, K. J., & Tuttle, B. M. (2009). The impact of auditor rotation on auditor–client negotiation. Accounting, Organizations and Society, 34(2), 222-243. https://doi.org/10.1016/j.aos.2008.06.003

Yahya, A. (2015). Pengaruh Audit Tenure, Rotasi Auditor, Ukuran KAP Dan Independensi Auditor Terhadap Kualitas Audit dengan Fee Audit Sebagai Variabel Moderasi Pada Perusahaan Manufaktur Yang Terdaftar Di BEI (2012-2015) (Doctoral dissertation, Tesis. Yogyakarta: FEB UMY).