PENGARUH AUDIT TENURE DAN UKURAN PERUSAHAAN TERHADAP KUALITAS AUDIT: A SYSTEMATIC LITERATURE REVIEW
Main Article Content
Abstract
Abstract, This research aims to analyze the influence of audit tenure and company size on audit quality. Audit quality has an important role in providing accurate and reliable information to company stakeholders. Previous research shows that long audit tenure can improve audit quality. There is also research that too long audit tenure can reduce auditor independence and potentially reduce audit quality. Company size is also considered to influence audit quality. Companies with a larger size, such as large KAPs (Big Four), are considered to provide better audit quality than smaller KAPs. This is due to better financial resources and more specific relationships between large KAPs and their clients. It is hoped that the results of this research will provide new information and insight into the influence of audit tenure and company size on audit quality. These findings can be used as a reference in decision making and increase understanding of the factors that influence audit quality.
Abstrak, Penelitian ini bertujuan untuk menganalisis pengaruh audit tenure dan ukuran perusahaan terhadap kualitas audit. Kualitas audit memiliki peran penting dalam memberikan informasi yang akurat dan dapat dipercaya kepada para pemangku kepentingan perusahaan. Penelitian sebelumnya menunjukkan bahwa audit tenure yang panjang dapat meningkatkan kualitas audit, terdapat juga penelitian bahwa audit tenure yang terlalu panjang dapat mengurangi independensi auditor dan berpotensi menurunkan kualitas audit.Ukuran perusahaan juga dianggap mempengaruhi kualitas audit. Perusahaan dengan ukuran yang lebih besar, seperti KAP besar (Big Four), dianggap memberikan kualitas audit yang lebih baik dibandingkan KAP yang lebih kecil. Hal ini disebabkan oleh sumber daya keuangan yang lebih baik dan hubungan yang lebih spesifik antara KAP besar dengan klien mereka. Hasil penelitian ini diharapkan dapat memberikan informasi dan wawasan baru tentang pengaruh audit tenure dan ukuran perusahaan terhadap kualitas audit. Temuan-temuan ini dapat digunakan sebagai acuan dalam pengambilan keputusan dan meningkatkan pemahaman tentang faktor-faktor yang memengaruhi kualitas audit.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Afifa, M. A. & Saleh, I. H. (2023). Does Audit Quality Affect Companies Performance? Evidence From An Emerging Market. Ekonomski Pregled, 74(2), 208-232.
https://doi.org/10.32910/ep.74.2.2
Akono, H. (2020). Audit firm tenure and perceived audit quality: evidence from CEO incentive contracts. Review of Accounting and Finance, 19(3), 313–337. https://doi.org/10.1108/RAF-07-2018-0139
Al Daoud, K. A. (2020). An investigation into the effect of audit firm size, auditor tenure, institutional ownership, board characteristics on auditor independence. International Journal of Management Practice, 13(4), 462–477. https://doi.org/10.1504/IJMP.2020.108302
Alareeni, B. A. (2019). The associations between audit firm attributes and audit quality-specific indicators: A meta-analysis. Managerial Auditing Journal, 34(1), 6–43. https://doi.org/10.1108/MAJ-05-2017-1559
Baatwah, S. R., Salleh, Z., & Ahmad, N. (2018). High-quality auditors vs. high-quality audit: The reality in Oman. Afro-Asian Journal of Finance and Accounting, 8(3), 209–236. https://doi.org/10.1504/AAJFA.2018.093462
Bryan, D. B., & Mason, T. W. (2020). Earnings volatility and audit report lag. Advances in Accounting, 51(xxxx), 100496. https://doi.org/10.1016/j.adiac.2020.100496
Buntara, A. A., & Adhariani, D. (2019). Audit tenure and audit quality: The renewal sense of comfort? Australasian Accounting, Business and Finance Journal, 13(4), 46–62. https://doi.org/10.14453/aabfj.v13i4.4
Che, L., Hope, O.-K., & Langli, J. C. (2019). How Big-4 Firms Improve Audit Quality. SSRN Electronic Journal, January. https://doi.org/10.2139/ssrn.3364952
Donelson, D. C., Ege, M., Imdieke, A. J., & Maksymov, E. (2020). The revival of large consulting practices at the Big 4 and audit quality. Accounting, Organizations and Society, 87(xxxx), 101157. https://doi.org/10.1016/j.aos.2020.101157
El Guindy, M. N., & Trabelsi, N. S. (2020). IFRS adoption/reporting and auditor fees: the conditional effect of audit firm size and tenure. International Journal of Accounting and Information Management, 28(4), 639–666. https://doi.org/10.1108/IJAIM-09-2019-0107
Garcia-Blandon, J., Argilés-Bosch, J. M., & Ravenda, D. (2020). Audit firm tenure and audit quality: A cross-European study. Journal of International Financial Management and Accounting, 31(1), 35–64. https://doi.org/10.1111/jifm.12098
Hamid, M. A., Abdullah, W. M., & San, S. (2014). The Effect Of Audit Tenure And Firm Size On Audit Quality. Journal Of Business Management, 3(2), 15–24.
Hsieh, T. S., Kim, J. B., Wang, R. R., & Wang, Z. (2020). Seeing is believing? Executives’ facial trustworthiness, auditor tenure, and audit fees. Journal of Accounting and Economics, 69(1), 101260. https://doi.org/10.1016/j.jacceco.2019.101260
Kalanjati, D. S., Nasution, D., Jonnergård, K., & Sutedjo, S. (2019). Auditor rotations and audit quality: A perspective from cumulative number of audit partner and audit firm rotations. Asian Review of Accounting, 27(4), 639–660. https://doi.org/10.1108/ARA-10-2018-0182
Kamil, I. (2020). The Effect of Audit Fee, Audit Tenure, and Audit Company Size of Audit Quality in Goods Consumer Companies Liested in Indonesia Stock Exchange (BEI) in 2016-2019. International Journal of Management Studies and Social Science Research, 2(4), 170–182. www.ijmsssr.org
Kharuddin, K. A. M., Basioudis, I. G., & Farooque, O. Al. (2021). Effects of the Big 4 national and city-level industry expertise on audit quality in the United Kingdom. Journal of International Accounting, Auditing and Taxation, 43, 100398. https://doi.org/10.1016/j.intaccaudtax.2021.100398
Khurana, I. K., Lundstrom, N. G., & Raman, K. K. (2021). PCAOB Inspections and the Differential Audit Quality Effect for Big 4 and Non–Big 4 US Auditors*. Contemporary Accounting Research, 38(1), 376–411. https://doi.org/10.1111/1911-3846.12636
Martani, D., Rahmah, N. A., Fitriany, F., & Anggraita, V. (2021). Impact of audit tenure and audit rotation on the audit quality: Big 4 vs non big 4. Cogent Economics and Finance, 9(1). https://doi.org/10.1080/23322039.2021.1901395
Mohapatra, P. S., Elkins, H., Lobo, G. J., & Chi, W. (2022). The impact of PCAOB international registration on audit quality and audit fees: Evidence from China. Journal of Accounting and Public Policy, 41(4), 106947. https://doi.org/10.1016/j.jaccpubpol.2022.106947
Ocak, M., Kablan, A., & Dursun, G. D. (2021). Does auditing multiple clients affiliated with the same business group reduce audit quality? Evidence from an emerging market. Borsa Istanbul Review, 21(1), 1–22. https://doi.org/10.1016/j.bir.2020.06.001
Okoye, E. I., Adeniyi, S. I., & Ajala, A. M. (2022). Effect of Audit Firm Size and Audit Tenure on Audit Quality of Selected Listed Selected Firms in Nigeria. Journal of Global Accounting, 8(2), 48–57.
Oktarinaldi, H., & Robin (2022).Sistematik Litreratura Review: Pengaruh Fee Audit, Audit Tenure Terhadap Kualitas Audit. Jurnal Cakrawala Ilmiah, 1(5), 1477- 1486.
Patterson, E. R., Smith, J. R., & Tiras, S. L. (2019). The effects of auditor tenure on fraud and its detection. Accounting Review, 94(5), 297–318. https://doi.org/10.2308/accr-52370
Payne, J. L., & Williamson, R. (2021). An examination of the influence of mutual CFO/audit firm tenure on audit quality. Journal of Accounting and Public Policy, 40(4), 106825. https://doi.org/10.1016/j.jaccpubpol.2021.106825
Priyanti, D. F., & Uswati Dewi, N. H. (2019). The effect of audit tenure, audit rotation, accounting firm size, and client’s company size on audit quality. The Indonesian Accounting Review, 9(1), 1. https://doi.org/10.14414/tiar.v9i1.1528
Quick, R., & Schmidt, F. (2018). Do audit firm rotation, auditor retention, and joint audits matter? – An experimental investigation of bank directors’ and institutional investors’ perceptions. Journal of Accounting Literature, 41, 1–21. https://doi.org/10.1016/j.acclit.2018.01.003
Salehi, M., Komeili, F., & Daemi Gah, A. (2019). The impact of financial crisis on audit quality and audit fee stickiness: evidence from Iran. Journal of Financial Reporting and Accounting, 17(2), 201–221. https://doi.org/10.1108/JFRA-04-2017-0025
Sari, M. P., Saidah, N., Utaminingsih, N. S., & Raharja, S. (2023). Determinants of Audit Quality in State-Owned Enterprises Listed on the Indonesia Stock Exchange with Audit Fee as Moderating Variable. Montenegrin Journal of Economics, 19(3), 89–102. https://doi.org/10.14254/1800-5845/2023.19-3.7
Semba, H. D., & Kato, R. (2019). Does Big N matter for audit quality? Evidence from Japan. Asian Review of Accounting, 27(1), 2–28. https://doi.org/10.1108/ARA-01-2015-0008
Sun, J., Wang, J., Kent, P., & Qi, B. (2020). Does sharing the same network auditor in group affiliated firms affect audit quality? Journal of Accounting and Public Policy, 39(1), 106711. https://doi.org/10.1016/j.jaccpubpol.2019.106711
Suryani, E., Winarningsih, S., Avianti, I., Sofia, P., & Dewi, N. (2023). Does Audit Firm Size and Audit Tenure Influence Fraudulent Financial Statements? Australasian Accounting, Business and Finance Journal, 17(2), 26–37. https://doi.org/10.14453/aabfj.v17i2.03
Xiao, T., Geng, C., & Yuan, C. (2020). How audit effort affects audit quality: An audit process and audit output perspective. China Journal of Accounting Research, 13(1), 109–127. https://doi.org/10.1016/j.cjar.2020.02.002
Yanti, L. D., & Wijaya, M. D. W. D. (2020). Influence Of Auditor Switching, Audit Fee, Tenure Audit and Company Size To Audit Quality. ECo-Fin, 2(1), 9–15. https://doi.org/10.32877/ef.v2i1.150
Yuan, S., Zhang, W., & Zhu, K. (2023). Place attachment, audit pricing and audit quality. Journal of Contemporary Accounting and Economics, 19(2), 100365. https://doi.org/10.1016/j.jcae.2023.100365