ARTICLE
TITLE

Does Audit Quality Mediate the Effect of Auditor Tenure, Abnormal Audit Fee and Auditor's Reputation on Giving Going Concern Opinion?

SUMMARY

The increased fraud of financial statements shows the low role of external auditors in providing a quality audit report. The purpose of this paper is to analyze the effect of the length of the audit firm-client relationship, abnormal audit fees and auditor reputation on giving of going concern opinion mediated by audit quality. The sample consists of 185 firm years. Sample companies listed on the Indonesian Stock Exchange from 2012 to 2016. Data analysis techniques using SEM based PLS.The result of the indirect effect test shows that auditor tenure and auditor reputation have a positive effect on audit quality while abnormal audit fees has a negative effect to audit quality and audit quality has a negative effect on giving of going concern opinion. The results of this study also show that the company's financial condition does not moderate the effect of audit quality on giving going concern opinion.Keywords: Audit Quality, Auditor Tenure, Abnormal Audit Fee, Auditor's Reputation, Going Concern OpinionJEL Classifcation: M42

PAGES
pp. 143 - 152
COLLECTIONS
Economy

 Articles related

Made Aditya Bayu Pradhana, Made Gede Wirakusuma    

This study aims to determine the effect of integrity, obedience pressure and task complexity on audit quality with auditor's work experience as a moderating variable. The research was conducted at the Bali Provincial Inspectorate Office. The population i... see more


Budi Kurniawan, Donant Alananto Iskandar, Basuki Toto Rahmanto    

Abstract - There is debate whether ERM can improve the quality of financial reporting information or not. This study aims to examine the effect of the level of ERM disclosure on the quality of company earnings which is then moderated by internal audit co... see more


Alif Hidayatullah,Sulhani Sulhani    

This study was conducted with the aim of obtaining empirical evidence of the relationship between financial statement manipulation and CFO’s characteristics to the timeliness of financial reporting by using audit quality as a moderator. The data used in ... see more


Murhaban Murhaban    

This study aims to determine whether the professional competence and commitment affect the auditor's working motivation at the Inspectorate of North Aceh district. The research method in this study is causal research design with the auditors of Inspector... see more


Dian Widiyati, Annafisa Alfiah    

This study aims to determine the effect of real activities manipulation, opinion shopping, and sales growth on the receipt of audit opinions in Industrial Companies listed on the Indonesia Stock Exchange for the 2016-2020 period. The sampling technique u... see more