Financial statement fraud is the type of that has most detrimental impact. This due to importance information contained in financial statements themselves for stakeholders and shareholders. Fraud must be detected prevented from occurring a company. The pentagon theory explains elements cause through five elements, namely pressure, opportunity, rationalization, ability or potential arrogance. st...

This study investigates the effect of audit firm tenure on earnings management risk. We perform multivariate regression analyses to examine the empirical relationship between auditor tenure and the probability of earnings manipulation using Beneish’s (1999) framework. The analysis covering a five year time-period surrounding the enactment of SOX produces evidence of a negative relationship betw...

This study aims at examining the effect of quality internal auditors and effectiveness audit committees on corruption in State-Owned Enterprises (SOE). The is proxied by competence (experience, certification, training) objectivity auditors. Meanwhile, committee size, independence, number meetings, expertise committee. research method used a quantitative with type hypothesis testing research. po...

The extant literature and corporate governance regulations suffer from a tight focus on audit committee (AC) financial expertise as mean of improving the AC’s oversight role. However, there is lack evidence about other kinds that might be important for AC effectiveness which could contribute to quality statements. This study examines whether industry legal have an impact in developing country (...

The phenomenon of client pressure on the behavior accountants in Indonesia producing quality audit results is interesting to study, especially Java and Bali which can represent condition Indonesian economy. This study examines effect fees, auditor competence, professional ethics skepticism quality. sample framework based 2020 directory Association Professional Accountants, with a total 781 Publ...

In-group bias, a product of Social Identity Theory, may impair auditor independence by influencing auditor judgments in an analytical review task. Auditors rely on client representations to support their opinion of the financial statements; however, clients are sometimes former auditors of the external audit firm. This prior relationship could lead the auditor to exhibit unwarranted trust of cl...

In this paper, we apply the multinomial logit regression and decision tree approaches to examine the critical deciding factors that affect auditor choice decisions. We first examine the relationship between the auditor choice and firm specific factors. In order to get deeper insights about the association between auditor choice and firm’s characteristics, this paper employs the decision tree ap...