Do Board and Audit Committee Characteristics Improve External Auditor Choice?

DOI

10.2991/978-2-38476-273-6_116How to use a DOI?

Keywords

Auditor Choice; Commissioners Board; s Characteristics; Audit Committee; s Characteristics

Abstract

The conflict of interest between management and owners can be resolved by an independent auditor, a crucial entity that verifies and assures the accuracy of financial statements issued by a company's management to both internal and external stakeholders. Research on auditor selection has primarily focused on the characteristics of the board of commissioners and audit committee. This study aimed to investigate how these factors influence the choice of external auditors by companies. It involved 112 manufacturing firms listed on the Indonesia Stock Exchange from 2016 to 2019, analyzing the data using logistic regression. The findings indicate that the size and expertise of the board of commissioners, the independence and expertise of the audit committee, and profitability significantly impact the selection of external auditors. On the other hand, factors such as the independence of the board of commissioners, the frequency of meetings, the size and number of audit committee meetings, and company size do not influence auditor choice. Future research could expand on this topic by extending the study period, exploring additional indicators like the roles of the board of commissioners and the audit committee, and incorporating variables related to risk management.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Siti Noor Khikmah
AU  - Muji Mranani
AU  - Indira Januarti
PY  - 2024
DA  - 2024/08/02
TI  - Do Board and Audit Committee Characteristics Improve External Auditor Choice?
BT  - Proceedings of 5th Borobudur International Symposium on Humanities and Social Science 2023
PB  - Atlantis Press
SP  - 1118
EP  - 1132
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-273-6_116
DO  - 10.2991/978-2-38476-273-6_116
ID  - Khikmah2024
ER  -