The Determinants of Audit Quality: A Study Using the Approach of Earnings Surprise Benchmark

Reni Yendrawati; Arifin Praditya Putra; Rina Asmara

doi:10.30560/jems.v4n3p16

Reni Yendrawati Universitas Islam Indonesia, Yogyakarta, Indonesia
Arifin Praditya Putra Universitas Islam Indonesia, Yogyakarta, Indonesia
Rina Asmara Universitas Mercu Buana, Jakarta

DOI: https://doi.org/10.30560/jems.v4n3p16

Keywords: Audit Firm Rotation, Industry Specialization, Audit Tenure, Time Budget Pressure, and Audit Quality

Abstract

This study aims to find empirical evidence regarding the influence of audit tenure, audit firm rotation, audit firm industry specialization, and time budget pressure on audit quality. This research is a quantitative research using secondary data in the form of financial statements. This study uses a population of manufacturing companies in the consumer goods sector listed on the Indonesia Stock Exchange in 2015-2017. The sampling was done by using a non-probability method with a purposive sampling technique. The number of samples used in this study is 34 companies. The data analysis method used is a logistic regression analysis method using Statistical Package for Social Sciences (SPSS) version 21. The results of this study indicate that audit tenure and audit firm rotation have no effect on audit quality, PAF industry specialization has a positive effect on audit quality, time budget pressure has a negative effect on audit quality.

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