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Audit Opinion Accuracy, Corporate Governance and Downward Auditor Switching: A Study of Association of Southeast Asian Nations Economics Community

Author

Listed:
  • Totok Budisantoso

    (Universitas Atma Jaya Yogyakarta, Indonesia)

  • Rahmawati Rahmawati

    (Universitas Sebelas Maret, Surakarta, Indonesia,)

  • Bandi Bandi

    (Universitas Sebelas Maret, Surakarta, Indonesia,)

  • Agung Nur Probohudono

    (Universitas Sebelas Maret, Surakarta, Indonesia)

Abstract

Objective of this research is to examine moderating effect of audit opinion accuracy on relationship between corporate governance and downward auditor switching in five countries of Association of Southeast Asian Nations (ASEAN) region. Sample of this research is manufacture companies listed in stock exchange of Indonesia, Malaysia, Singapore, Thailand and Philippine. Based on country fixed effect logistic regression, results show that audit committee, independent commissioner and financial deepening have negative effect on downward auditor switching, if opinion accuracy is high. It indicates that monitoring role of audit committee, independent commissioner and public will increases audit quality by prevent high quality auditor, especially when opinion accuracy is high. In the other hand, opinion accuracy does not moderate effect of ownership on downward auditor switching, indicates that there is entrenchment effect of controlling shareholder in auditor switching decision.

Suggested Citation

  • Totok Budisantoso & Rahmawati Rahmawati & Bandi Bandi & Agung Nur Probohudono, 2017. "Audit Opinion Accuracy, Corporate Governance and Downward Auditor Switching: A Study of Association of Southeast Asian Nations Economics Community," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 530-540.
    • Handle: RePEc:eco:journ1:2017-05-61
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    References listed on IDEAS

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    Cited by:

    1. Stephanie Monteiro Miller, 2022. "Dual 8-K filings and auditor downward switches," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(2), pages 204-217, June.

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    More about this item

    Keywords

    Audit Opinion Accuracy; Corporate Governance; Downward Auditor Switching; ASEAN;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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