Effect of Audit Rotation, Audit Fee and Auditor Competence to Motivation Auditor and Implications on Audit Quality (Case Study of Registered Public Accountant Firms at Bank Indonesia)

Abstract

The purposes of this research are to analyze and to learn: (1) the correlation between audit rotation, audit fee and auditor competence, (2) Influence of audit rotation, audit fee and auditor competence on auditor motivation both simultaneously and partially, and (3) the influence of audit rotation, audit fee, auditor competence and auditor motivationon audit quality both simultaneously and partially. This study uses an explanatory research methods, conducted on 103 Public Accountant Firms (PAF) registered at Bank Indonesia as the unit of analysis, while the unit of observation is a partner and manager. The primary data is used and collected by a research questionnaires containing instruments for measurement interval scale. Its distribution must be firstevaluated the validity and reliability testing before hypothesis. The analysis of data used Path Analysis and evaluate the hypothesis testing by using Lisrel software. 8.7. The result of this study indicates: (1) there is correlation between audit rotation, audit fee and auditor competence, (2) audit rotation, audit fee and auditor competence influence to auditor motivation both simultaneously and partially, and (3) audit rotation, audit fee, auditor competence and auditor motivation influence on audit quality both simultaneously and partially.

Keywords: audit rotation, audit fee, auditor competence, auditor motivation and audit quality.