| Summary: | Conservatism is one of the principles that an auditor should have. This
study aims to analyze the level of auditor conservatism in Indonesia between
1993 and 2012. Audit failure scandals in the early 2000s led to the Sarbanes-
Oxley Act, in which very influential in the accounting world. The Act spur auditor
to implement conservatism even further in any audit activity. This study measured
the level of auditor conservatism by comparing the level of discretionary accrual
before and after the Sarbanes-Oxley Act.
The results of this study proves that there is no significant difference in the
level of discretionary accrual before and after the Sarbanes-Oxley Act, so it can be
concluded that the level of auditor conservatism in Indonesia has not experienced
an increase in the first decade after the implementation of the Sarbanes-Oxley Act
in the United States. This is presumably because the regulation in Indonesia, as an
adjustment of the Sarbanes-Oxley Act, has not been as complete and as
comprehensive as the act.
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