Does IFRS Have Impact on Earning’s Quality and Audit Fee?

Abstract

Apakah adopsi IFRS memberikan dampak terhadap kualitas laba dan biaya audit? Tujuan dari penelitian ini adalah untuk memberikan bukti empiris mengenai dampak adopsi IFRS pada kualitas laba dan biaya audit. Penelitian ini menggunakan perusahaan non-keuangan di Bursa Efek Indonesia pada tahun 2010-2014, sebelum penerapan Masyarakat Ekonomi Asean (MEA). Metode pengumpulan data adalah purposive sampling dengan metode analisis regresi panel. Hasil penelitian menunjukkan bahwa adopsi IFRS tidak mempengaruhi kualitas laba, namun pada perusahaan yang mengadopsi IFRS, terbukti bahwa kualitas laba berpengaruh pada biaya audit. Oleh karena itu, perusahaan di Indonesia harus menyesuaikan laporan keuangan dengan standar internasional. Does IFRS have the impact on earning's quality and audit fees? The purpose of this research is to provide empirical evidence regarding the impacts of IFRS's adoption on earning's quality and audit fee. This research used nonfinancial companies in Indonesia Stock Exchange in 2010-2014 before Asean Economic Community implementation in 2015. The data was collected by employing purposive sampling, which was then analysed by using panel regression method. The result showed that on one hand, the adoption of IFRS did not affect earning's quality, while on the other hand, it is proven that earning's quality affected audit fee for companies adopting IFRS. Therefore, companies in Indonesia should update with the progress of the international standard.

Audit Quality Analysis During Uncertain Economic Conditions

“…Every industry has its own risk, including BPR ABC especially during uncertain economic conditions, logically higher client risk and audit complexity will be associated with higher audit fees (Kim et al, 2012).When the inherent risk is high, an auditor is needed to inquire about additional evidence. An auditor is also expected to collect more evidence to assign experienced auditor staff to review the audit result that has been done by the junior auditor, therefore the audit fee should be increased (Wedari & Oktorina, 2017).…”

Moderating Effect of Earnings Persistence on the Relationship Between International Financial Reporting Standards Implementation and Earnings Response Coefficient of Listed Companies in Nigeria

“…Kusumaningwedari and Oktorina (2017) inquired on the extent of IFRS impact on earning's quality and audit fee. The study utilized nonfinancial organizations that are listed in Indonesia from 2010 to 2014 preceding Asean Economic Community IFRS execution in 2015.…”