EFFECT OF AUDIT FEE, AUDIT TENURE AND AUDIT ROTATION ON AUDIT QUALITY AT PUBLIC ACCOUNTING FIRMS IN MEDAN CITY
Abstract
This research was conducted to achieve the following objectives: (1) Knowing and analyzing the effect of Audit Fee on Audit Quality; (2) Knowing and analyzing the effect of Tenure Audit on Audit Quality; (3) Knowing and analyzing Audit Rotation on Audit Quality; (4) Knowing and analyzing the effect of Audit Fee, Audit Tenure and Audit Rotation on Audit Quality.
In this study, the authors take an associative approach, the primary data source. Data was collected using a survey method by distributing questionnaires to auditors working at the Public Accounting Firm in Medan City. The sampling technique used in this study is purposive sampling and has special criteria, the questionnaires that were successfully received were 35 questionnaires. The data analysis technique used in this research is descriptive statistics, multiple regression test, hypothesis testing, and coefficient of determination test.
The results showed that partially Audit Fee and Audit Tenure had a significant effect on Audit Quality, Audit Rotation had no effect on Audit Quality. Meanwhile, simultaneously audit fee, audit tenure and audit rotation have a significant effect on audit quality.
References
CNN.Indonesia. (2019, June 28). Ministry of Finance Revealed Three Negligence of Garuda Indonesia Auditors.https://www.cnnindonesia.com/economy/20190628124946-92- 407304/kemenkeu-beberkan-three-negligence-auditor-garuda-indonesia
Darmaningtyas, S. (2018). Effect of Audit Fee, Audit Tenure, KAP Rotation and Client Company Size on Audit Quality (Study on Manufacturing Companies Listed on the Indonesia Stock Exchange 2012-2016). In Thesis Indonesian Islamic University Yogyakarta.
Dewi, NP (2016). Analysis of Audit Fee, Audit Tenure and Auditor Professional Skepticism in Relation to Audit Quality Case Study at Yogyakarta Public Accounting Firm [Sanata Dharma University Yogyakarta]. in Accounting.https://repository.usd.ac.id/8332/1/121414071_full.pdf
Dewi, R. (2017). The Effect of KAP Size, Debt Default, Opinion Shopping, and Going Concern Opinion on Auditor Change (Empirical Study on Manufacturing Companies Listed on the IDX in 2011-2015). repository.unpas.ac.id
Erdiani, N. (2018). Effect of Quality Control System and Time Budget Pressure on Audit Quality at Public Accounting Firms in Medan City. North Sumatra Muhammadiyah University.
