Audit Quality Attibutes and Client Factors
This study aims to examine and provide empirical evidence of the impact of client size and industry specialization on audit quality and the effect of audit quality on audit fees, reputation, and litigation both on audit-detecting misstatement quality and audit-reporting misstatement quality-analyzed...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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University of Merdeka Malang
2020-08-01
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| Series: | AFRE (Accounting and Financial Review) |
| Subjects: | |
| Online Access: | https://jurnal.unmer.ac.id/index.php/afr/article/view/3884 |
| _version_ | 1818532167061340160 |
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| author | Muhamad Muhamad Taqi Rahmawati Rahmawati Bandi Bandi Sri Murni Warsina Warsina |
| author_facet | Muhamad Muhamad Taqi Rahmawati Rahmawati Bandi Bandi Sri Murni Warsina Warsina |
| author_sort | Muhamad Muhamad Taqi |
| collection | DOAJ |
| description | This study aims to examine and provide empirical evidence of the impact of client size and industry specialization on audit quality and the effect of audit quality on audit fees, reputation, and litigation both on audit-detecting misstatement quality and audit-reporting misstatement quality-analyzed based on client factors. This paper utilizes the perspective regulatory theory and signaling theory and is based on quantitative-causality research conducted by the survey method. Technique sampling is performed by purposive sampling. The results indicate that client size had a significant positive effect on the audit quality-detecting misstatement but does not have any impact on the audit quality-reporting misstatements whereas industry specialization auditors have no effect on the audit quality-detecting misstatement but have a significant effect on the audit quality-reporting misstatements. Clients may opt for the auditor that charges lower fees but can provide a positive signal for stakeholders or choose an auditor that is registered with BPK or OJK because such audit firms are more acceptable by stakeholders. As for the external auditors, the high-quality audit is necessary to avoid the risk of litigation in addition to maintaining independence.
DOI: https://doi.org/10.26905/afr.v3i1.3884 |
| first_indexed | 2024-12-11T17:41:58Z |
| format | Article |
| id | doaj.art-87147c9355524a2caef6beb74f43a6f4 |
| institution | Directory Open Access Journal |
| issn | 2598-7763 2598-7771 |
| language | English |
| last_indexed | 2024-12-11T17:41:58Z |
| publishDate | 2020-08-01 |
| publisher | University of Merdeka Malang |
| record_format | Article |
| series | AFRE (Accounting and Financial Review) |
| spelling | doaj.art-87147c9355524a2caef6beb74f43a6f42022-12-22T00:56:30ZengUniversity of Merdeka MalangAFRE (Accounting and Financial Review)2598-77632598-77712020-08-013111310.26905/afr.v3i1.38842232Audit Quality Attibutes and Client FactorsMuhamad Muhamad Taqi0Rahmawati Rahmawati1Bandi Bandi2Sri Murni3Warsina Warsina4Economics and business Faculty, Accounting department, Universitas Sultan Agung Tirtayasa, TangerangEconomics and business Faculty, Universitas Sebelas Maret, IndonesiaEconomics and business Faculty, Universitas Sebelas Maret, IndonesiaEconomics and business Faculty, Universitas Sebelas Maret, IndonesiaDoctoral student of economics, Universitas Sebelas Maret, IndonesiaThis study aims to examine and provide empirical evidence of the impact of client size and industry specialization on audit quality and the effect of audit quality on audit fees, reputation, and litigation both on audit-detecting misstatement quality and audit-reporting misstatement quality-analyzed based on client factors. This paper utilizes the perspective regulatory theory and signaling theory and is based on quantitative-causality research conducted by the survey method. Technique sampling is performed by purposive sampling. The results indicate that client size had a significant positive effect on the audit quality-detecting misstatement but does not have any impact on the audit quality-reporting misstatements whereas industry specialization auditors have no effect on the audit quality-detecting misstatement but have a significant effect on the audit quality-reporting misstatements. Clients may opt for the auditor that charges lower fees but can provide a positive signal for stakeholders or choose an auditor that is registered with BPK or OJK because such audit firms are more acceptable by stakeholders. As for the external auditors, the high-quality audit is necessary to avoid the risk of litigation in addition to maintaining independence. DOI: https://doi.org/10.26905/afr.v3i1.3884https://jurnal.unmer.ac.id/index.php/afr/article/view/3884audit qualityauditor speciali-zationdetecting misstatementreporting misstatementand firm reputation. |
| spellingShingle | Muhamad Muhamad Taqi Rahmawati Rahmawati Bandi Bandi Sri Murni Warsina Warsina Audit Quality Attibutes and Client Factors AFRE (Accounting and Financial Review) audit quality auditor speciali-zation detecting misstatement reporting misstatement and firm reputation. |
| title | Audit Quality Attibutes and Client Factors |
| title_full | Audit Quality Attibutes and Client Factors |
| title_fullStr | Audit Quality Attibutes and Client Factors |
| title_full_unstemmed | Audit Quality Attibutes and Client Factors |
| title_short | Audit Quality Attibutes and Client Factors |
| title_sort | audit quality attibutes and client factors |
| topic | audit quality auditor speciali-zation detecting misstatement reporting misstatement and firm reputation. |
| url | https://jurnal.unmer.ac.id/index.php/afr/article/view/3884 |
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