Track: Sustainability and Green Systems

Abstract

This research aims to determine the effect of client importance, audit capacity stress, and audit fee both partially and simultaneously on audit quality. The population of this research is financial companies listed on Indonesia Stock Exchange for the period 2016-2020. Purposive sampling was used as the research sampling technique. Therefore, the samples obtained were 50 financial companies for the period 2016-2020. Logistic regression was used in this research to analyze the data. Results of the hypotheses show that client importance, audit capacity stress, and audit fee affect audit quality simultaneously while only audit fee affects audit quality partially. This research adds to the limited number of samples and variables that could affect audit quality. It is suggested to do the next research with client importance as an independent variable on audit quality with a different measurement. The implications and recommendations will be discussed further in this research.