DETERMINANTS OF AUDIT QUALITY IN MANUFACTURING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE 2023–2024 PERIOD

Abstrak

This study aims to examine the effect of Audit Fees, auditor switching, company size, and key audit matters on audit quality. The measurement used for the Audit Fee variable is the natural logarithm of the Audit Fee received by the auditor. The auditor switching variable uses a proxy for auditor replacement at the company. For the company size variable, a proxy of the natural logarithm of total assets is used. Key audit matters use interval value classification of the number of key audit matters reported in independent auditor reports. The audit quality variable is measured using discretionary accruals. The population in this study consists of manufacturing companies listed on the Indonesia Stock Exchange for the period 2023-2024. The total sample for this study consists of 262 companies, obtained using purposive sampling technique. This study uses a multiple regression analysis model with SPSS 25 software to test the hypothesis. The results of this study indicate that Audit Fees and key audit matters have a significant negative effect on audit quality, whereby the smaller the discretionary accruals value, the higher the audit quality. Meanwhile, auditor switching and company size have no effect on audit quality.

Kata kunci

• Audit Fee
• Audit Quality
• Auditor Switching
• Firm Size
• Key Audit Matters (KAM)