External and Internal Factor of Auditor Switching

Abstract

Auditor Switching is done voluntarily,and raises questions about the factors that become the reference for that. Internal factors are management changes, financial distress, going concern opinion, company size, audit delay, institutional ownership, and public ownership. The external factor is the auditor's reputation. Based on the results of purposive sampling obtained 163 companies that meet the sample criteria, with the observation year 2009-2013, in order to obtain 815 research samples. The test results show that the change of management, financial distress, going concern opinion and audit delay has a positive effect on the auditor switching, company size and auditor's reputation negatively affect on the auditor switching While the variables of institutional ownership and public ownership do not affect the auditor switching.

Keywords:auditor switching, internal factors, eksternal factors, and logistic.

DOI: 10.7176/RJFA/11-8-06

Publication date: April 30^th 2020