Safriliana, Retna, Subroto, Bambang, Subekti, Imam and Rahman, Aulia Fuad (2020) The Voluntary Of Public Accountant Firms Switching With Modified Auditor’s Opinion As Mediation Variables. Journal Of Southwest Jiaotong University, 55 (6). pp. 1-12. ISSN 0258-2724

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Abstract

This article describes the factors that influence the voluntary switching of public accounting firms, with modified auditor opinion as a mediating variable, in nine Southeast Asia and East Asian countries on the basis of explanatory research. The data for the period of 2014 to 2018 are obtained from the Osiris database, which provided a total sample of 27.740 manufacturing companies in Indonesia, Malaysia, Singapore, Thailand, the Philippines, Japan, China, Hong Kong, and Taiwan. The data analysis technique used is stepwise logistic regression, and the modified Zmijewski model using discriminant analysis is applied to measure the financial distress variable. The results of the study indicate that companies experiencing financial distress, have large assets, and are audited by non-big four audit firms tend to make public accountant firm switching before the specified time. In companies that experience financial distress and tend to decide on voluntary public accountant firm switching, there is partial mediation of the auditor’s opinion apart from an unqualified opinion. This means that companies experiencing financial
distress tend to get an auditor’s opinion apart from an unqualified opinion such that the company switches its public accountant firm before the mandated five years. Companies from the Philippines, Japan, and China are the most orderly in obeying the rules for voluntary public accountant firm switching, whereas those from Indonesia and China are the least orderly. This study is usefull for policy on auditor switching
implemented by the ASEAN Certified Public Accountant and East Asia to maintain the independency of public accountant firms and auditors in Asia.

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