| Summary: | Companies that listed on IDX required to publish audited financial
statement. Based on regulation No. X.K.6 about the responsibilities of publishing
annual report for issuers and public companies that have been made by Bapepam,
public companies require auditor as an independent party to produce opinion of
fairness of the financial statement. This research trying to analize several factors
that affect companies from making a decision about auditor switching. The object
on this research are the public companies that listed on IDX during 2009-2011.
There are three independent variables used in this research, such as opinion,
reputation of audit firms, and financial distress. Based on this research, all of
those independent variables are taking effect significantly to auditor switching.
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