Does Auditor Industry Expertise Improve Audit Quality In Complex Business Environments?
This study examines the role of specialist auditors in enhancing the quality of financial statements by taking into account industry complexity. The test of hypotheses are conducted in two steps. The first step is to provide evidence that earnings quality, measured by earnings persistent, of firms o...
Main Authors: | , |
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Format: | Article |
Language: | Indonesian |
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Petra Christian University
2018-06-01
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Series: | Jurnal Akuntansi dan Keuangan |
Subjects: | |
Online Access: | http://jurnalakuntansi.petra.ac.id/index.php/aku/article/view/20846 |
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author | Sansaloni Butar-Butar Stefani Lily Indarto Lily Indarto |
author_facet | Sansaloni Butar-Butar Stefani Lily Indarto Lily Indarto |
author_sort | Sansaloni Butar-Butar |
collection | DOAJ |
description | This study examines the role of specialist auditors in enhancing the quality of financial statements by taking into account industry complexity. The test of hypotheses are conducted in two steps. The first step is to provide evidence that earnings quality, measured by earnings persistent, of firms operating in the complex and non-complex industry are different. The second step is to compare the absolute abnormal accruals of companies engaged in the complex industry with those from non-complex industry audited by non-specialist and specialists auditors. Results show: 1) earnings persistence of firms in complex industries are lower than those in non-complex industries. 2) absolute abnormal accruals of firms operating in complex industries are higher than those in non-complex industries regardless industry specialization. Overall, the results suggest that auditor industry expertise does not play a significant role in improving the quality of audited earnings in complex business environment. |
first_indexed | 2024-12-11T09:15:26Z |
format | Article |
id | doaj.art-09a2d010da5249b983be30bd0c4bd871 |
institution | Directory Open Access Journal |
issn | 1411-0288 2338-8137 |
language | Indonesian |
last_indexed | 2024-12-11T09:15:26Z |
publishDate | 2018-06-01 |
publisher | Petra Christian University |
record_format | Article |
series | Jurnal Akuntansi dan Keuangan |
spelling | doaj.art-09a2d010da5249b983be30bd0c4bd8712022-12-22T01:13:23ZindPetra Christian UniversityJurnal Akuntansi dan Keuangan1411-02882338-81372018-06-0120111210.9744/jak.20.1.1-1219269Does Auditor Industry Expertise Improve Audit Quality In Complex Business Environments?Sansaloni Butar-Butar0Stefani Lily Indarto Lily Indarto1Faculty of Economics and Business, Soegijapranata Catholic University of Semarang Jl. Pawiyatan Luhur IV/1 Bendan Dhuwur, Semarang 50234Faculty of Economics and Business, Soegijapranata Catholic University of Semarang Jl. Pawiyatan Luhur IV/1 Bendan Dhuwur, Semarang 50234This study examines the role of specialist auditors in enhancing the quality of financial statements by taking into account industry complexity. The test of hypotheses are conducted in two steps. The first step is to provide evidence that earnings quality, measured by earnings persistent, of firms operating in the complex and non-complex industry are different. The second step is to compare the absolute abnormal accruals of companies engaged in the complex industry with those from non-complex industry audited by non-specialist and specialists auditors. Results show: 1) earnings persistence of firms in complex industries are lower than those in non-complex industries. 2) absolute abnormal accruals of firms operating in complex industries are higher than those in non-complex industries regardless industry specialization. Overall, the results suggest that auditor industry expertise does not play a significant role in improving the quality of audited earnings in complex business environment.http://jurnalakuntansi.petra.ac.id/index.php/aku/article/view/20846specialist auditorearnings persistenceindustry complexityfinancial reports |
spellingShingle | Sansaloni Butar-Butar Stefani Lily Indarto Lily Indarto Does Auditor Industry Expertise Improve Audit Quality In Complex Business Environments? Jurnal Akuntansi dan Keuangan specialist auditor earnings persistence industry complexity financial reports |
title | Does Auditor Industry Expertise Improve Audit Quality In Complex Business Environments? |
title_full | Does Auditor Industry Expertise Improve Audit Quality In Complex Business Environments? |
title_fullStr | Does Auditor Industry Expertise Improve Audit Quality In Complex Business Environments? |
title_full_unstemmed | Does Auditor Industry Expertise Improve Audit Quality In Complex Business Environments? |
title_short | Does Auditor Industry Expertise Improve Audit Quality In Complex Business Environments? |
title_sort | does auditor industry expertise improve audit quality in complex business environments |
topic | specialist auditor earnings persistence industry complexity financial reports |
url | http://jurnalakuntansi.petra.ac.id/index.php/aku/article/view/20846 |
work_keys_str_mv | AT sansalonibutarbutar doesauditorindustryexpertiseimproveauditqualityincomplexbusinessenvironments AT stefanililyindartolilyindarto doesauditorindustryexpertiseimproveauditqualityincomplexbusinessenvironments |