THE INFLUENCE OF SIZE OF PUBLIC ACCOUNTING FIRM, AUDIT TENURE AND AUDIT FEE TOWARDS INDEPENDENCE OF EXTERNAL AUDITOR

Abstract

Understanding about the independence is a necessity to control the attitude in a profession, especially as auditor. This research was conducted to analyze the factors that influence the independence of external auditors, which is in this research, there were three factors that can influence the independence of external auditors, namely the size of the public accounting firm, audit tenure, and audit fees. This research aims to prove the influence of the size of the public accounting firm, audit tenure, and audit fee towards independence of external auditors partially. This research was conducted at a public accounting firm in the city of Jakarta. This research uses multiple linear regression analysis. The data used are primary data by distributing questionnaires directly to auditors working at the Public Accountant Firm in Jakarta. The sample used was 120 respondents obtained from the public accounting firm in the Jakarta area. Tests are carried out in three stages, namely validity and reliability test, classic assumption test and hypothesis test. The analytical tool used is multiple linear regression analysis using SPSS version 23. The results of the research show that the variable size of the public accounting firm, audit tenure, and audit fee has a significant effect on the independence of external auditors in the Public Accountants office in Jakarta.