Auditor Workload Compression and Busy Season Auditor Switching

2015 ◽  
Author(s):  
Dennis M. López ◽  
Gary F. Peters
Keyword(s):  
Auditor Switching ◽  
Workload Compression

Auditor Workload Compression and Busy Season Auditor Switching

2011 ◽  
Vol 25 (2) ◽  
pp. 357-380 ◽  
Author(s):  
Dennis M López ◽  
Gary F Peters
Keyword(s):  
Positive Association ◽  
Data Availability ◽  
Fiscal Year ◽  
Auditor Switching ◽  
Economic Significance ◽  
Behavioral Studies ◽  
Audit Firms ◽  
Empirical Perspective ◽  
Workload Compression ◽  
The Impact

SYNOPSIS This study investigates the impact of the busy season and concomitant concentrated demands on audit resources on the likelihood of auditor switching. Hereafter, we refer to the concentration of companies with the same fiscal year-end date within an auditor's client portfolio as “workload compression.” Despite the economic significance of December year-end clients for audit firms and the challenges imposed by workload compression, the busy season remains a relatively unexplored area of study in the archival auditing literature (Sweeney and Summers 2002). This study represents an attempt to fill this void and validate some of the findings of prior behavioral studies from an empirical perspective. We employ a sample of 10,238 company-year observations for years 2004 through 2007 and find evidence consistent with December year-end companies having a lower likelihood of auditor switching than that of non-December year-end companies. However, we also find evidence of a significantly positive association between the likelihood of auditor switching and workload compression. Thus, our results suggest that it is not just the fiscal year-end month of a client that matters, but the concentration of busy season companies within an auditor's client portfolio also affects the auditor-client relationship. Data Availability: Data are available from public sources identified in the paper.

Pengaruh Profitabilitas, Umur Perusahaan, Ukuran Perusahaan, Kualitas Audit, Dan Struktur Modal Terhadap Kualitas Laba

2014 ◽  
Vol 6 (1) ◽  
pp. 27-42
Author(s):  
Keshia Anjelica ◽  
Albertus Fani Prasetyawan
Keyword(s):  
Firm Size ◽  
Stock Prices ◽  
Audit Quality ◽  
Earnings Quality ◽  
Secondary Data ◽  
Financial Statements ◽  
Firm Age ◽  
Construction Companies ◽  
Auditor Switching ◽  
Testing Method

The objective of this research is to examine the effect of profitability, firm age, firm size, audit quality, and leverage both partially and simultaneously towards earnings quality. The testing method used in this research is multiple regressions. The objects of this study are property, real estate and construction companies which were listed at Kompas 100 for the period 2010-2012. The samples are 15 companies determined based on purposive sampling. The data used in this study are secondary data such as financial statements and historical stock prices. The results of this study are (1) firm age has a negative significant effect on earnings quality, meanwhile firm size has a positive significant effect on earnings quality (2) profitability, audit quality, and leverage partially have an insignificant effect towards earnings quality (3) profitability, firm age, firm size, audit quality, and leverage simultaneously have a significant effect towards voluntary auditor switching. Keywords: ERC, earnings quality, profitability, firm age, firm size, audit quality, leverage.

The Impact of Financial Distress, Corporate Governance, and Auditor Switching on Audit Delay

2021 ◽  
Vol 6 (2) ◽  
pp. 108-117
Author(s):  
Sylvi Angelia ◽  
Rizal Mawardi
Keyword(s):  
Corporate Governance ◽  
Financial Services ◽  
Financial Distress ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Auditor Switching ◽  
Analysis Technique ◽  
The Impact

Objective – The purpose of this study is to examine the effect between financial distress, corporate governance, auditor switching and audit delay. This research sample using data on a manufacturing company on the Indonesia Stock Exchange. Methodology – The analysis technique used is multiple linear regression analysis technique. Findings– The research finding show that financial distress and the size of the audit committee have a significant effect on audit delay, while the concentration of ownership, managerial ownership, change of directors, and auditor switching has no significant effect on audit delay. Second finding explain that consideration for companies listed on the Indonesia Stock Exchange to pay attention to the timeliness of submitting financial reports and independent auditor reports so as not to get sanctions from the Financial Services Authority. Novelty – Our novelty research using the relationship of Financial Distress, Corporate Governance and Auditor Switching on new research model to Audit Delay. Type of Paper: Empirical JEL Classification: M41, M42 Keywords: Financial Distress, Corporate Governance, Auditor Switching, Audit Delay

scholarly journals Reputasi Auditor sebagai Pemoderasi Pengaruh Opini Audit dan Pergantian Manajemen pada Auditor Switching

2020 ◽  
Vol 30 (10) ◽  
pp. 2456
Author(s):  
Nyoman Ratna Candradewi ◽  
Gayatri Gayatri
Keyword(s):  
Regression Analysis ◽  
Sampling Method ◽  
Significant Positive Effect ◽  
Audit Opinion ◽  
Management Change ◽  
Analysis Techniques ◽  
Opinion Change ◽  
Auditor Switching ◽  
Positive Effect

Auditor turnover is a behavior that the client company does to transfer the auditor. This reaserch aims to obtain empirical evidence of the effect of audit opinion and management change on auditor switching and how the auditor's reputation is able to moderate the influence of audit opinion and management change on auditor switching. Determination of the research sample using purposive sampling method with a sample of 145 companies. Data analysis techniques used are logistic regression analysis and Moderated Regression Analysis (MRA). Based on the results of this study indicate that audit opinion and management change have a significant positive effect on auditor switching. However, the auditor's reputation is unable to moderate the effect of audit opinion and management change on auditor switching. Keywords: Audit Opinion; Change of Management; Auditor Switching; Auditor’s Reputation.

scholarly journals Reducing Stress from Workload Compression: Coping Strategies That Work in CPA Firms

2011 ◽  
Vol 16 (1) ◽  
Author(s):  
Craig R. Ehlen ◽  
G. R. Cluskey, Jr. ◽  
Richard A. Rivers
Keyword(s):  
Job Performance ◽  
Occupational Stress ◽  
Job Stress ◽  
Management Practices ◽  
Job Demands ◽  
Contributing Factors ◽  
Job Stressors ◽  
Accounting Practitioners ◽  
Workload Compression ◽  
Reducing Stress

<p class="MsoNormal" style="margin: 0in 0.5in 0pt;"><span style="font-family: &quot;CG Times&quot;,&quot;serif&quot;;"><span style="font-size: x-small;">Workload compression is characterized by the AICPA (Padwe 1994) as a condition of excessive job demands caused by the 1986 Tax Reform Act (TRA).<span style="mso-spacerun: yes;">&nbsp; </span>The TRA severely limited the ability of businesses to elect other than a calendar year-end reporting for tax purposes.<span style="mso-spacerun: yes;">&nbsp; </span>Consequently, professional accountants find their tax and audit work compressed into the first quarter of each year.<span style="mso-spacerun: yes;">&nbsp; </span>In an earlier study Cluskey and Vaux (1997a) found job stressors, such as excessive job demands, to be contributing factors in causing job stress, which ultimately leads to degraded job performance. Cluskey and Vaux (1997b) also found workload compression to be a possible contributor to occupational stress in professional accountants.<span style="mso-spacerun: yes;">&nbsp; </span>The current study surveyed public accountants in both October (slack season) and February (busy season).<span style="mso-spacerun: yes;">&nbsp; </span>The study found that standard indicators of job stress were no greater in February than in October, indicating that workload compression does not contribute additional occupational stress in accounting practitioners.<span style="mso-spacerun: yes;">&nbsp; </span>Subsequent interviews with the participants revealed that the firms in this study have incorporated specific management practices to help their employees cope with the extremely high job demands during this period of workload compression, which may help explain these unexpected results.</span></span></p>

scholarly journals Pengaruh Umur Perusahaan, Ukuran Perusahaan, Reputasi Auditor, Dan Pergantian Auditor

2020 ◽  
Vol 2 (3) ◽  
pp. 2912-2928
Author(s):  
Ranti Dewi Fortuna ◽  
Efrizal Syofyan
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Company Size ◽  
Manufacturing Companies ◽  
Audit Report ◽  
Financial Reports ◽  
Auditor Switching ◽  
Auditor Reputation

The purpose of this study is to analyze the influence of company age, company size, auditor reputation and auditor change on auditor switching. The data used in this study are annual and financial reports on manufacturing companies listed on the Indonesia Stock Exchange (IDX) in the 2014-2018 period. The method of sampling data using purposive sampling method based on certain criteria. Based on the sampling method, a sample of 230 companies was obtained. Testing the hypothesis in this study using multiple linear regression analysis. The results showed that company size, auditor reputation and auditor switching had no effect on audit report lag and company age had a positive effect on audit report lag.

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