Abstract

In maintaining auditor independence, the regulation on auditor switching is set if after five consecutive years of auditing a company it must perform auditor switching. Auditor switching can be an indication of problems in a company or signify the presence of auditors that have low performance. This study aims to determine the effect of company growth, management change, audit report lag, and financial distress simultaneously and partially on auditor switching. The population in this study is the infrastructure, utilities, and transportation sectors listed on the Indonesian Stock Exchange 2016-2020 period. The sample in this study was 155 sample data consisting of 31 companies for 5 years.The method used is logistic regression and descriptive statistics with SPSS 26 software. The results of this study that company growth, management change, audit report lag, and financial distress simultaneously affect on auditor switching. Partially, management change has a positive effect on auditor switching, while company growth, audit report lag, and financial distress have no effect on auditor switching. This research is expected to be an insight for investors who do not want to invest in companies do auditor switching voluntarily then look for companies that do not often do management change.

Keywords

Auditor Switching, Company Growth, Management Change, Audit Report Lag, Financial Distress