FACTORS AFFECTING THE SWITCHING OF PUBLIC ACCOUNTING FIRM (STUDY OF MANUFACTURE COMPANIES LISTED IN INDONESIA STOCK EXCHANGE)

Abstract

This research has main objective to know empirical evidence of factors that affecting auditor switching by the client on manufacture companies listed in Indonesia stock exchange. The factors to be analyzed are size of company, growth of company, financial distress, audit opinion and size of public accounting firm. The data generated from manufacture companies listed in Indonesia stock exchange (BEI) in 2010-2012, are processed using SPSS 11.0. Logistic regression analysis is implemented in this research to test the effect of factors to the switching of public accounting firm, represented as auditor switching. The results of this research are that size of company affects auditor switching, growth of company does not affect auditor switching, financial distress of company does not affect auditor switching, audit opinion affects auditor switching, and size of public accounting firm affects auditor switching.