Pengaruh Tenur Kantor Akuntan Publik (KAP) dan Reputasi KAP terhadap Kualitas Audit : Kasus Rotasi Wajib Auditor di Indonesia
Efraim Ferdinan Giri
(Dosen STIE YKPN Yogyakarta)
[Jurnal Audit – SNA 13]
Finance Minister of Indonesia Republic has issued regulations governing the compulsory rotation of firms and auditors since 2003. The climax is the issuance of the Finance Minister Regulation No. 17/Menkeu.01/2008. This legislation regulates the provision of auditing services time limit three years for auditors and six years for KAP. Mandatory rotation is one way to protect auditors independency. This research is motivated by the issuance of the finance minister rules and equvocal of research finding . In this research auditor tenure is defined as firm tenure.
This research aims to test whether the firms tenure will reduce the audit quality in Indonesia. This research tests the influence of firms tenure on the audit quality. This research will also investigate the effect of firms reputation (KAP International affiliated or not affiliated) on the audit quality. This research is expost research using archaival data. The data are analyzed by using a generalized regression method of moment (GMM). Sampel consist of 455 public companies years in manufacturing industries listed in the Indonesia Stock Exchange.
Data analysis shows that firms tenure negatively influences the audit quality. Otherwise, accounting firms reputation does not influence the audit quality. This research is expected to provides positive suggestions to the Finance Minister in completing the law draft of public accountants.
Key Word: Firm tenure, mandatory rotation, audit quality and firm reputation
This study tested whether tenur KAP will degrade the quality of audits. In addition, this study will examine whether the reputation of KAP will be able to restrict earnings management actions by the client. Enron problem in the U.S. had surprised many. Enron committed fraud also involves a public accounting firm (KAP) International Arthur Anderson (AA). Many people put the auditor as the party most responsible for this problem. Auditor independence is one of the factors thought to trigger this problem.
AA has made the task of auditing Enron keunangan nearly for nearly 20 years. AA should have a lot to know the problems faced by its client, Enron. Why KAP of AA is not able to uncover problems at Enron and in the organization knowingly or unknowingly involved in a conspiracy with Enron. This condition raises a presumption that the task is too long audit conducted by an auditor (KAP) will be bound emotionally and reduce its independence. The second allegation relates to the question of whether the auditor’s reputation can support a high independence stance of an auditor to produce high quality audits as well.
Cheating client can not be separated from the weak attitude of auditor independence is low. Irregularities in accounting can be caused due to escalation of commitment from auditors to always give a reasonable opinion on the financial statements that deviate clients (Moore et al. 2006). Flexibility of attitude causes the auditor himself trapped in his way of thinking, so the initial decision to approve the actions of the client a false lead auditors have had to instill commitment in depth. When auditors find irregularities in his client’s conduct financial reporting, the auditor does not give the client a reprimand and even legitimize the act. Under conditions of a very long tenur expected to create problems of escalation of commitment to an auditor’s bad decisions. Escalation of commitment is associated with low-balling action to generate other income in the future (Moore et al. 2006).