Pengaruh Tenure, Rotasi dan Spesialisasi Kantor Akuntan Publik (KAP) Terhadap Kualitas Audit: Perbandingan Sebelum dan Sesudah Regulasi Rotasi KAP di Indonesia

Fitriany, Fitriany; Utama, Sidharta; Martani, Dwi; Rosietta, Hilda

doi:10.9744/jak.17.1.12-27

Cited by 18 publications

(38 citation statements)

References 26 publications

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“…Despite of this is a frequently debated issue and the regulation oftenly changes, research on the relationship between tenure audit and the quality of financial statements in Indonesia is still very limited. Fitriany et al (2015) state that in the pre regulation period (1999)(2000)(2001), increasingly length of audit tenure, the lower the quality audit. In the post-regulation period (2004)(2005)(2006)(2007)(2008), the empirical evidence shows a convex relationship between audit tenure and audit quality from the side of neutrality and timeliness.…”

Section: Regulation On Audit Tenure In Indonesiamentioning

confidence: 99%

“…In the post-regulation period (2004)(2005)(2006)(2007)(2008), the empirical evidence shows a convex relationship between audit tenure and audit quality from the side of neutrality and timeliness. Different with this research, Fitriany et al (2015) use firm tenure rather than individual tenure.…”

Section: Regulation On Audit Tenure In Indonesiamentioning

confidence: 99%

“…With the decrease in independence the auditor is no longer able to conduct audit in high quality, so that management can perform earnings management, which in most case by performing upward earnings management. Using the Indonesian context Fitriany et al (2015) states that the audit tenure will reduce the quality of audits by using earnings management as proxy when the tenure audit has passed the optimal level. If lower audit quality associated with higher incidence of earnings management.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

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The Effect of Personal Tenure on Earnings Surprise Management

Amelia

Wardhani

2018

JAKI

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The purpose of this study is to investigate the effect of personal tenure between Audit Partner and Client CEO on firm's likelihood to do upward earnings management. Using non financial firms listed on Indonesia Stock Exchange period 2012-2014, this study finds that personal tenure between Audit Partner and Client CEO have significant positive influence on firms' likelihood to do upward earnings management and downward forecast guidance. The results of this study indicate that personal tenure positively influences both mechanisms of avoiding negative earnings surprises. Furthermore, since the company's resources in doing both mechanisms are often limited, this study also examines the impact of personal tenure on firm's choices between the two mechanisms, by testing whether companies choose to do downward forecast guidance, but not upward earnings management or using upward earnings management but not downward forecast guidance. The results show that personal tenure positively associated with the likelihood of firms doing downward forecast guidance without upward earnings management. The result indicates that lower independency of the audit partner due to longer tenure between Audit Partner and Client CEO encourage management to do earnings management by avoiding negative earnings surprise.

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Section: Regulation On Audit Tenure In Indonesiamentioning

confidence: 99%

Section: Regulation On Audit Tenure In Indonesiamentioning

confidence: 99%

Section: Hypothesis Developmentmentioning

confidence: 99%

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The Effect of Personal Tenure on Earnings Surprise Management

Amelia

Wardhani

2018

JAKI

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“…This paper is the extension of the study by Fitriany, et al [3] that examined the influence of audit tenure, audit rotation and specialization of audit firm before and after the application of regulations in Indonesia in 2003. Our paper contributed to before and after the application of AF and PA regulations (PP No.20 Year 2015) which prior researchers have not found empirical evidence on the application of the regulation.…”

Section: Introductionmentioning

confidence: 98%

“…Pseudorotation is a change in the composition of audit partners and the change of AF, like there is no rotation. While the real rotation is actually a change of AF [3].…”

Section: Introductionmentioning

confidence: 99%

Analysis of the Implementation of Indonesian Government Regulation Number 20 Year 2015 Related to Tenure and Rotation of Accounting Firms and Public Accountants to Audit Quality

Faisal¹,

Nirmala²,

Fitriany³

et al. 2019

Proceedings of the 12th International Conference on Business and Management Research (ICBMR 2018)

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This study examines government regulations related to public audit services performed by the accounting firm and public accountant as regulated in Government Regulation (PP) No. 20 of 2015, which in this case, eliminates limits for accounting firm (AF) tenure and extends public accountant (PA) tenure from three years into five years. This research also analyzed the previous regulations of the Minister of Finance Decree No. 359/KMK.06/2003, Minister of Finance Regulation No. 17/PMK.01/2008, which are related to the existence of real and pseudo-rotation of AF. This research used 195 non-financial industry companies listed in the Indonesia Stock Exchange with pre-regulation research period is the year 2008-2014 and postregulation is the year 2015-2016. The results show that AF tenure has no quadratic effect on audit quality, while tenure of PA has a concave quadratic effect on audit quality in the post-regulation period. This study also found that the pseudo-rotation of AF had a positive effect on audit quality in the pre-regulation period and did not affect the post-regulation period, while it was not found that the real AF rotation had an effect on audit quality.

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Impact of audit tenure and audit rotation on the audit quality: Big 4 vs non big 4

Martani

Rahmah

Fitriany

et al. 2021

Cogent Economics & Finance

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This paper examines the effect of audit tenure and audit rotation on audit quality. This study also examines whether this effect of the rotation is different between the Big 4 and non-Big 4 audit firm. This research was conducted in Indonesia, which is one of the few countries that not only implementing audit partner rotation but also mandatory audit firm rotation. However, in 2015, the mandatory audit firm rotation in Indonesia was abolished. The results show that the relationship between the tenure of auditor and audit quality is not significant. Audit firm rotation positively impacts audit quality, and the positive impact is lower in Big 4. In non-Big 4, audit partner rotation has no effect on audit quality, but audit firm rotation could improve audit quality. Meanwhile, in Big 4, audit partner rotation is sufficient to improve audit quality because they have sufficient partners to perform a quality review. From this study, the Indonesian government can consider the urgency to reimpose the mandatory audit firm's rotation or make a policy of the need to merge small non-Big 4 audit firms to increase the number of audit partners, and it will result in better inter-partner review processes to produce higher-quality audits.

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Pengaruh Tenure, Rotasi dan Spesialisasi Kantor Akuntan Publik (KAP) Terhadap Kualitas Audit: Perbandingan Sebelum dan Sesudah Regulasi Rotasi KAP di Indonesia

Cited by 18 publications

References 26 publications

The Effect of Personal Tenure on Earnings Surprise Management

The Effect of Personal Tenure on Earnings Surprise Management

Analysis of the Implementation of Indonesian Government Regulation Number 20 Year 2015 Related to Tenure and Rotation of Accounting Firms and Public Accountants to Audit Quality

Impact of audit tenure and audit rotation on the audit quality: Big 4 vs non big 4

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