The Effect of Audit Tenure, KAP Reputation, and The COVID-19 Pandemic on Audit Quality
DOI:
https://doi.org/10.59889/ijembis.v4i1.345Keywords:
Audit Tenure, KAP Reputation, Covid-19 Pandemic, Audit QualityAbstract
This study empirically aims to determine the effect of tenure audits, public accountants' reputation, and the COVID-19 pandemic on audit quality in manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange (IDX) for the 2016-2020 period. This research is quantitative, with a population of 52 companies, and sampling techniques were carried out using the purposive sampling method to obtain a sample of 32 companies. The results showed that audit tenure has a positive effect on audit quality, meaning that the longer the audit tenure, it will encourage the creation of understanding for an auditor of the company being audited. Furthermore, the reputation of KAP negatively affects audit quality; this shows that non-Big Four KAPs have no less good performance so that they can improve audit quality. The COVID-19 pandemic has negatively affected audit quality, which means that weak economic conditions have provided obstacles for the Company and KAP, causing audit quality to decline.
Downloads
References
Agustini, T., &; Siregar, D. L. (2020). The effect of audit fees, tenure audits and audit rotation on audit quality on the Indonesia Stock Exchange. EMBA Journal: Journal of Economic, Management, Business and Accounting Research, 8(1), 637–646. https://doi.org/10.35794/emba.v8i1.28033
Darya, K., &; Puspitasari, S. A. (2017). Public Accounting Reputation, Audit Tenure, Company Size and Audit Quality (Study on LQ 45 Indonesia Companies). Journal of Finance and Banking, 13(2), 97–109. http://journal.ibs.ac.id/index.php/jkp/article/view/49
Herdiyana, M. B. (2021). The Effect of Public Accounting Reputation and Audit Fees on Audit Quality (Empirical Study on Manufacturing Companies Listed on the Indonesia Stock Exchange in 2013-2017).
Indriani, L., Amin, M., &; Junaidi. (2020). The Effect of Audit Fees, KAP Rotation, and Reputation. E-Jra, 09(03), 63–64.
Kurniasih, M. (2014). The Effect of Audit Fees, Audit Tenure, and Audit Rotation on Audit Quality (Empirical Study on Go Public Manufacturing Companies Listed on the Indonesia Stock Exchange in 2008-2012). 0(0), 0.
Nurhayati, S., &; Prasiti, S. D. (2015). The effect of cap rotation, audit tenure, and cap reputation on audit quality in manufacturing companies. Journal of Actual Accounting, 3, 165–174.
Panjaitan, C. M., &; Chariri, A. (2014). The effect of tenure, KAP size and auditor specialization on audit quality. Diponegoro Journal of Accounting, 3(3), 1–12. https://ejournal3.undip.ac.id/index.php/accounting/article/view/6061
Paputungan, R. D., &; Kaluge, D. (2018). The effect of audit engagement period, audit rotation and the size of public accounting firms on audit quality. 8(1). https://doi.org/10.22219/jrak.v8i1.29
Permatasari, I. Y., &; Astuti, C. D. (2018). The Effect of Audit Fees, Auditor Rotation, and Public Accounting Reputation on Audit Quality. Trisakti Accounting Journal, 5(1), 81–94.
Rahmataallo, J., Kadir, N., &; Haliah. (2017). Analysis of the effect of audit tenure, cap size, and cap reputation on audit quality.
Renaningtyas, A. (2020). Analysis of the Effect of Audit Tenure, Company Size and Audit Fee on Audit Quality. MAXIMUM:Media Accounting University of Muhammadiyah Semarang, 9(2), 73–80.
Rizaldi, S. (2017). The Effect of Audit Tenure, Auditor Reputation, Audit Committee and Audit Fee on Audit Quality (Empirical Study on Companies Listed on the Kompas100 Index on IDX Year 2012-2016).
Sugianto, D. (2019). Taro producers allegedly inflated financial statements of Rp 4 trillion. Www.Finance.Detik.Com. https://finance.detik.com/bursa-dan-valas/d-4485663/produsen-taro-diduga-gelembungkan-laporan-keuangan-rp-4-t
Tjun, T. (2019). The influence of tenor, size, and specialization of public accounting firms on audit quality. Estuarine Journal of Economics and Business, 2(2), 463. https://doi.org/10.24912/jmieb.v2i2.1747
Yadav, S., &; Srivastava, J. (2021). CSR, audit quality and firm performance during COVID-19: an organizational legitimacy perspective. Indian Institute of Management Kozhikode.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Dipa Teruna Awaloedin, Siti Nur Aisyah Effendy, Zumratul Meini
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.