· Rinny Meidiyustiani Faculty of Economics and Business, Universitas Budi Luhur Email : [email protected] ABSTRACT The purpose of this study is to determine the factors that

Implementation of Regression Logistics for Audit Switching

Rinny Meidiyustiani

Faculty of Economics and Business, Universitas Budi Luhur

Email : [email protected]

ABSTRACT The purpose of this study is to determine the factors that affect the switching audit Population used in this research is the consumer goods industry sector listed on the Indonesia Stock Exchange (BEI) in 2012 - 2015. The research model used in this study is logistic regression analysis logistic regression), since the dependent variable is a dummy variable. The results of this study indicate that: a) Certified Public Accountant size does not affect switching auditors, b) firm size does not affect switching auditors c) Managerial ownership affects switching auditors and d) delay audit does not affect switching auditors Keywords: Size of Certified Public Accountant, Company size, Managerial ownership, Audit delay and auditor switching

INTRODUCTION

1.1. Research Background Companies that have gone public are required to issue financial statements. The financial

statements are a structured presentation of the financial position and financial performance of an entity. The purpose of financial statements is to provide information on the financial position, financial performance and cash flows of entities that are beneficial to most users of financial statements in economic decision making. The financial statements also show the results of management accountability for the user of the resources entrusted to them (Financial Accounting Standards, 2015).

To produce reliable financial statements, the client company is required to conduct audit rotation. Audit rotation is the auditor's rotation rule that must be performed by the company in order to produce quality and enforce the auditor's independence. Companies are expected to choose a competent substitute auditor in their field according to the needs of each company so that the process of completing the audit of financial statements can be done on time (Giri, 2010: 53).

The existence of rules regarding the auditor, the auditor is expected to improve the quality of audit results and also maintain the independence of an auditor in the public eye. The rules of change of the public accounting office become very useful to avoid the occurrence of irregularities committed by an entity and can help the accounting office to avoid the client relationship with the auditor for too long, in relation to the independence of auditors. But there is still a government or voluntary change of the auditor (voluntary).

A switching auditor is a behavior undertaken by a company to switch auditors, it arises

because of mandatory auditor switching obligations. The audit rotation obligation is regulated by the government in Law No. 5 of 2011 Article 4

paragraphs 1 and 2 of the services of a public accountant specifies that the provision of audit services by a Public Accountant and / or Firm over a historical account of a client for a 3rd consecutive year

International Journal of Pure and Applied MathematicsVolume 119 No. 15 2018, 771-789ISSN: 1314-3395 (on-line version)url: http://www.acadpubl.eu/hub/Special Issue http://www.acadpubl.eu/hub/

771

may be limited in period of time. Provisions on restrictions on the provision of audit services to historical financial information shall be regulated in a Government Regulation.

According to Effendi (2015), switching auditors or change of Certified Public Accountant or auditor may be influenced by several factors. Factors of the switching auditors from the company are financial distress, change of management, managerial ownership, company size, corporate social responbility. While factors derived from Certified Public Accountant can be audit delay, audit fee, audit opinion given, reputation of public accounting firm. Factors to be studied are Certified Public Accountant size, client company size, managerial ownership and audit delay towards the switching auditor.

The size of the Firm may affect the company to make a change of auditor. Because companies will usually look for The size of the Firm may affect the company to make a change of auditor. Because companies will usually look for The size of the Firm may affect the company to make a change of auditor. Because companies will usually look for The size of the Firm may affect the company to make a change of auditor. Because companies will usually look for KAP credibility of financial statements on the external side as users of financial statements (Aprianti and Hartaty, 2016). In addition, larger audit firms are generally regarded as high quality audit providers and have a high reputation in the business environment. The higher the audit firms such as Big 4 then the higher the company to maintain the auditor (Effendi, 2015).

The size of the client company is a measure to determine the size of the client company associated with the company's financial. Where a large company is believed to solve financial difficulties it faces from small companies (Aprianti and Hartaty, 2016). So it can be said that the size of the client company affects the switching auditor. Because of the larger client companies due to business complexity and increased separation between management and ownership, the demand is very high for independent audit firms to reduce agency costs (Watts and Zimmerman in Nabila, 2011).

The new role of management as a shareholder will encourage efforts to increase the value of the company because the value of wealth management as shareholders will also increase along with the increasing value of the company (Astyorini, 2015). Increased managerial ownership helps to link the interests of internal parties and shareholders and leads to better decision making and increased corporate value. Thus the activities of the company can be monitored through large managerial ownership (Endraswati, 2012).

The short length of audit delay is influenced by the complexity of the auditing process performed by the auditor. Stocken (2000) states that if the time required for the auditor to complete the audit is too long, causing the company late deliver the financial statements to the capital market can affect the auditor switching credibility of financial statements on the external side as users of financial statements (Aprianti and Hartaty, 2016). In addition, larger audit firms are generally regarded as high quality audit providers and have a high reputation in the business environment. The higher the audit firms such as Big 4 then the higher the company to maintain the auditor (Effendi, 2015).



The short length of audit delay is influenced by the complexity of the auditing process performed by the auditor. Stocken (2000) states that if the time required for the auditor to complete the audit is too long, causing the company late deliver the financial statements to the capital market

International Journal of Pure and Applied Mathematics Special Issue

772

can affect the auditor switching credibility of financial statements on the external side as users of financial statements (Aprianti and Hartaty, 2016). In addition, larger audit firms are generally regarded as high quality audit providers and have a high reputation in the business environment. The higher the audit firms such as Big 4 then the higher the company to maintain the auditor (Effendi, 2015).



The short length of audit delay is influenced by the complexity of the auditing process performed by the auditor. Stocken (2000) states that if the time required for the auditor to complete the audit is too long, causing the company late deliver the financial statements to the capital market can affect the auditor switching credibility of financial statements on the external side as users of financial statements (Aprianti and Hartaty, 2016). In addition, larger audit firms are generally regarded as high quality audit providers and have a high reputation in the business environment. The higher the audit firms such as Big 4 then the higher the company to maintain the auditor (Effendi, 2015).



The short length of audit delay is influenced by the complexity of the auditing process performed by the auditor. Stocken (2000) states that if the time required for the auditor to complete the audit is too long, causing the company late deliver the financial statements to the capital market can affect the auditor switching.

1.2. Problem Identification Based on the background description that a lot of factors that affect the auditor switching in the process of auditing financial statements made by public accountants, it can be formulated the problem as follows: 1. Is there any effect of Based on the background description that a lot of factors that affect the

auditor switching in the process of auditing financial statements made by public accountants, it can be formulated the problem as follows:

2. Is there any effect of Based on the background description that a lot of factors that affect the auditor switching in the process of auditing financial statements made by public accountants, it can be formulated the problem as follows:


773

3. Is there any effect of Certified Public Accountant size on the switching auditor in the consumer goods industry company listed in Indonesia Stock Exchange (IDX)?

4. Is there any influence of company size of client to switching auditor at consumer goods industry company in Indonesia Stock Exchange (IDX)?

5. Is there any effect of managerial ownership on the switching auditor in the consumer goods industry company listed in Indonesia Stock Exchange (IDX)?

6. Is there any effect of audit delay on the switching auditor in the consumer goods industry company listed in Indonesia Stock Exchange (IDX)? size on the switching auditor in the consumer goods industry company listed in Indonesia Stock Exchange (IDX)?



9. Is there any effect of audit delay on the switching auditor in the consumer goods industry company listed in Indonesia Stock Exchange (IDX)? size on the switching auditor in the consumer goods industry company listed in Indonesia Stock Exchange (IDX)?



12. Is there any effect of audit delay on the switching auditor in the consumer goods industry company listed in Indonesia Stock Exchange (IDX)?

2. Literature Review

2.1 Agency Theory According to (Jensen and Meckling, 1976) in (Effendi, 2015) describes the agency

relationship as a contract under one or more principals involving an agency to perform some services for them by delegating decision-making powers to agents. The owner will delegate responsibility to the company's management and the company's management agrees to act on the responsibility or authority of the owner. Owners and agents assumed parties who know the economic field in a rational and mutually self-interested. Auditor is a party that is considered able to bridge the interests of the principal (shareholders) with the manager (agent) in managing the company's finances. The auditor performs the job monitoring function of the manager through a means of the company's annual report. The task of the auditor is to give an opinion on the financial statements, regarding the reasonableness. In addition, the current auditor should also consider the viability of the company by providing quality audit quality so that it will affect the company's survival and stock price of the company.

2.2 Auditor Switching Auditor switching is the turn of the auditor and the turn of public accounting firm (Hood) conducted by the company client. auditor switchingbisa occurs voluntary (volunteer) or mandatory (required) .apabila change occurs voluntary, then factors can be derived from a client-side (for example financial difficulties, management failed, change of ownership and from the side of the auditor (for example fee audit and quality of the audit). instead if change occurs mandatory like that occur in Indonesia, it happened for their regulations require (sukadana and wirakusuma, 2016). auditor switching is the turn of the Hood conducted by the company (mahantara, 2013) in mahaindrayogi and suputra (2016) .auditor switching can be mandatory (required) or voluntary (volunteer).

2.3. Size of Certifies Public Accountant Offic Certified Public Accountant size is the measure used to determine the size of a KAP.Kkuran KAP can be said big if the KAP is affiliated with the Big Four, has branches and clients of large companies and have a professional staff above 25 people. While the size of KAP is said to be small if it is not affiliated with the Big Four, it has no branch office and its clients are small companies and the professional number is less than 25 people (Arens et al., 2015).


774

In Regulation of the Minister of Finance No. 17 / PMK.01 / 2008, it is explained that the Public Accounting Firm, hereinafter referred to as KAP, is a business entity that has obtained a license and the Minister as a forum for the Public Accountant to provide his services. 2.4. Clients Company Size

The size of the clients' company is to determine of how big clients companies associated with financial institution. A big company believed can be able to complete financial difficulties while facing company's turbulences (Aprianti and Hartaty, 2016). Minister of trade on the issuance of business license chapter 3, the size of the size of the company is measured by the total assets reduced total liability is not included the land and buildings business.

2.5. International Journal of Innovations in Scientific and According to Ramadhoni (2014) Managerial ownership is the largest share ownership by company management as measured by the percentage of total shares owned by management. According Rianti (2014) Managerial ownership is the shareholders also means in this case as the owner in the company of the management who actively participate in decision making in a company concerned. Managerial ownership can be measured by using the indicator of the total percentage of ownership of shares owned by the management of the total amount of share capital in circulation. Managerial ownership is also very important in a company. Managers are treated not as paid external parties for the benefit of the company but treated as shareholders. The greater the proportion of management ownership in a company then management will work harder to meet the interests of shareholders who are also himself. Managers will strive to do their best for the company to produce a good performance later on the company. Managers will also make efforts to make the optimal profit which is the goal for the company.

2.6. Audit Delay According to (Robbitasari, 2013) in (Sukadana and Wirakusuma, 2016), audit delay is the time required for the auditor to audit the financial statements since the closing date of the company year 31 December until the date of signature of the audit report or the date of audit opinion. The short length of audit delay is influenced by the complexity of the auditing process performed by the auditor. The delay audit can be defined as the time frame in completing the audit work until the date of issue of the report. The delay audit is measured by the length of days required to obtain an independent auditor's report on the audit of the company's annual financial report, from the closing date of the company's books as of December 31 to the date set forth in the independent auditor's report (Praptika and Rasmini, 2015). The delay audit is the time difference between the date of the financial statements and the date of the audit opinion. The longer time the auditor needs to complete the audit work, the audit delay is longer (Astyorini, 2015). Angruningrum and Wirakusuma (2013) argued that audit delay is a delay in audit completion which can be calculated by the difference between the date of the signing of independent auditor's report with the closing date of the annual financial report. In BAPEPEM Regulation no. KEP-346 / BL / 2011 concerning the submission of periodic financial statements of issuers or public companies states that annual financial statements must be submitted to BAPEPAM and LK and announced to the public no later than the end of the third month after the date of annual financial statements.


775

2.7. Research Framework According to Effendi (2015), switching auditors or change of Certified Public Accountan Office or auditor may be influenced by several factors. Factors of the switching auditor that comes from the company is financial distress, change management, managerial ownership, corporate size, corporate social responsibility. While the factors derived from the Certified Public Accountan Office can be audit delay, audit fee, audit opinion given, office reputation public accountant. Factors to be studied are Certified Public Accountan Office size, client company size, managerial ownership and audit delay towards the switching auditor. The size of the Firm may affect the company to make a change of auditor. Because companies will usually look for Certified Public Accountan Office credibility of financial statements on the external side as users of financial statements (Aprianti and Hartaty, 2016). The size of the client company is a measure to determine the size of the client company associated with the company's financial. Where large companies are believed to be able to solve financial difficulties they face than small firms (Aprianti and Hartaty, 2016). Because of larger client companies due to business complexity and increased separation between management and ownership, very high demand for independent audit firms to reduce agency costs (Watts and Zimmerman in Nabila, 2011). Managerial ownership is the number of outstanding shares of companies owned by managers who actively participate in corporate decision-making (Astyorini, 2015). Delay Audits can be defined at various timeframes in completing the audit work until the date of issuance of the report (Praptika and Rasmini, 2015). Based on a review of the description of the theory, the frame of thought in this study will be presented in the following figure :


776

2.8. Hypothesis

hypothesis is a statement formulated in the form of sentence news explain the form of the relationship between the two or more variable operational and can be tested empirically. the statement is still a answer while on the research problem based on the theory, the concept or assumption applicable. H1: The size of the Certified Public Accountant Office affects the auditor switching H2: The size of the clients company influence significantly toward auditor switching H3: The managerial ownerships affects the auditor switching H4: Audit delay effects positively the auditor switching

3. Research Methodology Research Methods by Sugiyono (2015) is basically a scientific way to get data with a specific purpose and usefulness. In this study required data and information in accordance with the problems studied, the data and information obtained must be complete and correct so that it can be used as a basis in the discussion of problems that exist in this study. The data used in this study is secondary data obtained from the Indonesia Stock Exchange (BEI), Internet (http://www.idx.co.id) and financial statements of manufacturing companies consumer goods industry sector period 2012-2015 which has been audited. Data processing in this study using data ratio obtained by measurement and dummy data obtained by using the scale of category zero or one. Measurement data used is a form of quantitative data which means data in the form of numbers.

3.1. Population and Sampling According Sugiyono (2015) states that the population is a generalization region consisting of objects or subjects that become quantities and certain characteristics set by researchers to be studied and then drawn conclusions. Population is the whole object in research that the researcher's attention to be researched and used as a sample in the study. The population used in this study is the consumer goods industry sector listed on the Indonesia Stock Exchange (BEI) in 2012 - 2015. Researchers choose to use the population in the sector because therein there are companies large and small, the market share is diverse in the presence of companies that start operations from raw material production or companies that start operations from buying inventory for sale. The number of manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange (BEI) is 37 companies (http://www.sahamok.com).

3.2. Data Collection Data collection techniques according to Sugiyono (2015) is the most strategic step in the research, because the main objective in research is to get data. This data collection technique is very important because without knowing this technique the researchers will not get the appropriate and meet the established data standards. In a study of data collection techniques is one step to get good data, which can support the results of a study. Science is needed in determining the data to be used so that the data collected is really the data needed and in accordance with the criteria of data to be researched. Based on the type of data used, this study includes quantitative research because it uses data in the form of numbers (Sugiyono, 2015).

3.3. Research Model The research model used in this research is logistic regression analysis, because there is dependent variable is dummy variable. Logistic regression analysis aims to test whether the probability of occurrence of dependent variables can be predicted with independent variables (Ghozali, 2016).

After all data in accordance with the criteria already in can then the next step is to process data and analyze research data based on the model structure among research variables. In processing the author data using SPSS v.20 program. The hypothesis is formulated to test the effect of KAP Size, client

company size, managerial ownership and audit delay on the switching auditor


777

= b0 + b1 UKAP + b2 SIZE + b3 KM + b4 AUDLY + e

Remarks :

: Auditor Switching

bo : Constanta

b1, b2, b3, b4 : Coefficient regression variables

UKAP : Certified Public Accountant Size

SIZE : Clients Company Size

KM : Mangerial Ownership

AUDLY : Audit Delay

e : Error

3.4. Operational Variable

As part of the measurement process, operational variables are a process that connects conceptual definitions to operational definitions. Thus, the operationalization of variables produces operational variables or called indicators which become the empirical measure of the variables or concepts that are operationalized (Silalahi, 2015). In this study there are two variables, namely independent variable (dependent) and dependent variable (independent). According Sugiyono (2015), dependent variable (dependent) is variable that influenced or which become result because of independent variable. The dependent variable is the switching auditor. While the independent variable is a variable that affects or which causes change or the emergence of the dependent variable (bound). The dependent variable is the size of Certified Public Accountant Office, the size of the client company, managerial ownership and audit delay

3.5. Data Analysis Tool

According Sugiyono (2015) data analysis is an activity after data from all respondents or other data sources collected. Activities in data analysis are grouping data based on variables and respondent types, tabulating data based on variables from all respondents, presenting data of each variable studied, doing calculation to answer formulation problem, and doing calculation to test hypothesis which have been proposed.

3.6. Logistic Regression Analysis

According to Priyatno (2013) logistic regression is an analysis to estimate a result based on changes in the values of independent variables. To estimate the odds based on each value of the independent variable. In the method of logistic regression analysis is usually the data used as a dependent variable in the form of a dichotomy (dummy variable). Logistic regression analysis aims to test whether the probability of occurrence of related variables can be predicted with independent variables (Ghozali, 2016). In the logistic regression analysis there are several other analyzes as follows:

3.7. Assessing the Entire Model (Overal Model Fit)

The first step is to assess the overall fit model of the data. Some statistical tests are given to assess this. The hypothesis for assessing the fit model is:

Ho: The hypothesized model is not fit with the data Ha: The hypothesized model fit with the data


778

From this hypothesis it is clear that we will not reject the null hypothesis to fit the model with the data. Statistics are used based on the likelihood function. The Likelihood L of the model is the probability that the hypothesized model represents the input data. To test the null and alternate hypotheses L is transformed into -2LogL. A decrease in likelihood (-2LL) indicates a better regression model or in other words a hypothesized fit model with data (Ghozali, 2016).

3.8. Determination Coefficient (Negelkerke R Square)

Coefficient of determination to measure how far the ability of the model in explain the variation of variables dependent. r2 value indicates the magnitude of the variation of the dependent variable that can be explained by the independent variable and the rest could not be described as a part of the other variables that are not incorporated into the model. Cox and Snell's R square is the size of trying to mimic the size r2 multiple regression based on the techniques estimation likelihood with the maximum value less than one (1) so hard to interpreted. negelkerke's R square is the modification modification of the coefficient of Cox and Snell's to ensure that the value vary from 0 (zero) until one (1). This is done by dividing the value of Cox and Snell's r2 with value maximum. value Negelkerke's R square could be interpreted as r2 value on multiple regression. Value small means the ability of the variables independent in explain the variation of the dependent variable very limited. Value approaching the mean variables independent give almost all information needed to predict the variable-dependent variable (ghozali, 2016). Test worthiness regression model (test Hosmer and lemeshow's goodness of fit test) worthiness regression model assessed by using the test Hosmer and lemeshow's goodness of fit test. Hosmer and Lemeshow's goodness of fit test test the null hypothesis that the empirical data fit or in accordance with the model, there is no difference between model with data so that the model can be said fit. 4.0. Results and Discussions 4.1. Basic decision-making is as follows:

a. If the value Hosmer and lemeshow's goodness of fit test equal to or less than 0,05 the null hypothesis rejected which means no significant differences between the model with value observasinya so that the goodness of fit model not good for model can not predict the value the observation.

b. If the value of statistics Hosmer and lemeshow's goodness of fit test is greater than 0,05 the null hypothesis can not be rejected and means able to predict the value observasinya or can be said a model acceptable because match the data observed.

c. Test the feasibility of also can be seen from the statistical data omnibus test of the model coefficients. omnibus test of the model coefficients are used to test the hypothesis is data has been in accordance with the model. the value of the omnibus test of the model coefficients can be seen by using the level of significance of 0,05 (5%) as follows :

If the value of the SIG <0,05 the null hypothesis (Ho) rejected and (ha) received, which means that the data has been in accordance with the model. If the value of the SIG> 0,05 the null hypothesis (Ho) received and (ha) rejected, which means that no data according to the model.

4.2. Prediction Accuracy The prediction accuracy test can be seen from the clarification table. The clarification table is used to calculate the correct and incorrect estimates (Ghozali, 2016). In the column there are two prediction values of the dependent variable, in this study is a company that performs switching auditors with a value of 1 (one) and companies that do not do switching auditor with value 0 (zero). While on the line shows the actual observation value of the dependent variable. In the perfect model, then all cases will be on diagonal with 100% accuracy forecasting. This clarification matrix shows the predictive power of the regression model to predict the likelihood of the company performing a switching auditor.


779

4.3. Hypothesis Test Partial Hypothesis Test (t-Test) The t-test basically shows how far the influence of one independent variable individually (partial) in explaining the dependent variable (Ghozali, 2016). In the logistic regression test-t can be seen in the table variable in the equation. Determining the level of significance of 5% or 0.05 can be done by looking at the value of probability. The level of significance can be tested by probability with the following criteria: 1. If sig <0,05 then the null hypothesis (Ho) is rejected and (Ha) accepted, it means that the

independent variables partially significant effect on the dependent variable. 2. If the value of sig> 0.05 then the null hypothesis (Ho) accepted and Ha rejected, it means that the

independent variables do not partially affect the dependent variable significantly. 4.4. Logistic Regression Analysis

Hypothesis testing in this study used logistic regression analysis, because the dependent variable in this study is dichotomy or dummy variable (do switching auditor and do not do switching auditor). The testing phase with logistic regression analysis as follows :

Table 4.9 -2 Log Likelihood

Iteration Historya,b,c

Iteration -2 Log likelihood Coefficients

Constant

Step 0

1 47,516 -1,588

2 45,153 -2,062

3 45,084 -2,161

4 45,084 -2,165

5 45,084 -2,165

a. Constant is included in the model.

b. Initial -2 Log Likelihood: 45.084

c. Estimation terminated at iteration number 5 because parameter estimates changed by less than .001.

Source : Meidiyustiani, output SPSS, 2017


780

Table 4.10 -2 Log Likelihood

Iteration Historya,b,c,d

Iteration -2 Log

likelihood Coefficients

Constant CPA

SIZE Clients Cop

Size Managerial

Ownership Audit_Delay

Step 1

1 41,314 -6,752 -,523 ,143 3,336 ,014

2 35,770 -12,286 -1,009 ,283 5,322 ,025

3 34,990 -16,369 -1,415 ,402 6,213 ,031

4 34,950 -17,903 -1,592 ,452 6,384 ,032

5 34,949 -18,051 -1,611 ,457 6,392 ,032

6 34,949 -18,052 -1,611 ,457 6,392 ,032

7 34,949 -18,052 -1,611 ,457 6,392 ,032

a. Method: Enter

b. Constant is included in the model.

c. Initial -2 Log Likelihood: 45.084

d. Estimation terminated at iteration number 7 because parameter estimates changed by less than .001.


Based on table 4.9 and 4.10 can be obtained value -2 Log Likelihood at the beginning (Block Number = 0) of 45,084. After four independent variables (KAP size, client company size, managerial ownership and audit delay) are included, the value of Log Likelihood at the end (Block Number = 1) is 34,949. Value -2LL Block Number = 0 at 45,084> -2LL Block Number = 1 of 34,949 there is a decline in value of 10.135. This decrease of likelihood (-2LL) indicates that the regression model is better or in other words the hypothesized model fit with the data.

Determinant Coefficient (Nagelkerke R Square)

Table 4.11 Determinant Coefficient


781

Model Summary

Step -2 Log likelihood Cox & Snell R

Square Nagelkerke R

Square

1 34,949a ,138 ,286

a. Estimation terminated at iteration number 7 because parameter

estimates changed by less than .001.


Based on table 4:11 above, it can be obtained that the value of Cox & Snell R Square is equal to 0.138 and Nagelkerke R Square value is 0.286 which means that variability of dependent variable can be explained by variability of independent variable that is KAP size, client company size, managerial ownership, audit delay equal to 28.6% while the remaining 71.4% is explained by other variables outside the research model. Other variables not examined in this research are audit opinion, public ownership, management change, audit tenure, going concern opinion, financial distress, audit fee and others. Hosmer and Lemeshow's Goodness of Fit Test and Omnibus Test Of Model Coefficients

The feasibility of the regression model was assessed using the Hosmer and Lemeshow's Goodness of Fit Test. The Hosmer and Lemeshow's Goodness of Fit Test tests the null hypothesis that empirical data match or match the model, there is no difference between the model and the data so that the model can be said fit. If the statistical value of Hosmer and Lemeshow's Goodness of Fit Test is greater than 0.05 (5%) then the null hypothesis can not be rejected and means the model can be accepted criteria according to the observation data or it can be said that the model can be accepted criteria according to the observation data (Ghozali, 2016). For more details can be seen in table 4.12 and table 4.13 below:

Table 4.12

Hosmer and Lemeshow Test

Step Chi-square Df Sig.

1 13,879 8 ,085


Hosmer and Lemeshow's Goodness of Fit Test and Omnibus Test Of Model Coefficients The feasibility of the regression model was assessed using the Hosmer and Lemeshow's

Goodness of Fit Test. The Hosmer and Lemeshow's Goodness of Fit Test tests the null hypothesis that empirical data match or match the model, there is no difference between the model and the data so that the model can be said fit. If the statistical value of Hosmer and Lemeshow's Goodness of Fit Test is greater than 0.05 (5%) then the null hypothesis can not be rejected and means the model can be accepted criteria according to the observation data or it can be said that the model can be accepted criteria according to the observation data (Ghozali, 2016). For more details can be seen in table 4.12 and table 4.13 below :


782

Table 4.13

Omnibus Tests of Model Coefficients

Chi-square df Sig.

Step 1

Step 10,134 4

,038

Block 10,134 4

,038

Model 10,134 4 ,038


Based on table 4:13 above, the test results Omnibus Test Of Model Coefficients obtained by the value of Chi-Square 10,134 with a significance level of 0.038. Sig value 0,038 <0,05 hence can be concluded that data have match with model. 4.5. Prediction Precision Test

The prediction test is used to calculate the correct and false estimation value (Ghozali, 2016). In the column there are two predictive values of the dependent variable that is the company conducting the switching auditor (1) and the company that does not perform the auditor switching (0). While on line indicates the actual observation value of the dependent variable. In the perfect model, all cases will be on the diagonal with 100% accuracy. SPSS results on the prediction accuracy can be seen in Table 4:14 as follows :

Table 4.14

Classification Tablea

Observed

Predicted

Auditor_Switching Percentage

Correct

No

Yes

Step 1 Auditor_Switching

No Auditor Switching 59 2

96,7

Auditor Switching 5 2 28,6

Overall Percentage

89,7

a. The cut value is .500


Based on table 4:14 above, can be seen that the level of accuracy of this logistic regression

model in predicting variable switching auditor is 89.7%. Precision accuracy results in the possibility of the company performing switching auditors is 28.6%. It shows that by using this regression model,


783

there are 2 samples (28,6%) predicted to do switching auditor from total 7 samples conducting switching auditor. While the predictive power of companies that do not do switching auditor is 96,7% indicating that with this regression model, there are 59 samples (96,7%) predicted not to do switching auditor from total 61 companies that do not do switching auditor. 4.6. Regression Model Formed

Logistic regression model that is formed is presented in Table 4:16 below as follows:

Table 4.16

Variables in the Equation

B S.E. Wald df Sig. Exp(B)

Step 1a

CPA Size -1,611 1,619 ,990 1 ,320 ,200

Company 's Size ,457 ,406 1,263 1 ,261 1,579

Managerial Ownerships 6,392 2,809 5,177 1 ,023 596,774

Audit_Delay ,032 ,020 2,475 1 ,116 1,032

Constant -18,052 11,617 2,415 1 ,120 ,000

a. Variable(s) entered on step 1: CPA_Size, Copy's_ Size, Managerial_Ownerships, Audit_Delay.


From table 4:16 above, can be obtained logistic regression equation formed is as follows :

= -18,052 –1,611UKAP +0,457SIZE+6,392KM+0,032AUDLY + e

Remarks :

:Auditor Switching

bo : constanta b1, b2, b3, b4 : coefficient variables UKAP : CPA Size SIZE : Company's Size KM : Managerial Ownerships AUDLY : Audit Delay e : Error

3.15. Partial Test Results (t-Test) The t-test basically shows how far the influence of one independent variable individually (partial) in explaining the dependent variable (Ghozali, 2016). At logistic regression the t-test can be seen in the variable in the equation table. Determining the level of significance that is 5% or 0.05 can be done by


784

looking at the probability value. The level of significance can be tested by probability with the following criteria 1. If the sig value <0,05 then the null hypothesis (Ho) is rejected and (Ha) accepted, it means that the

independent variables partially significantly influence the dependent variable. 2. If the value of sig> 0.05 then the null hypothesis (Ho) accepted and Ha rejected, it means that the

independent variables do not partially affect the dependent variable significantly Partial test in this research is conducted to know whether there is partial influence between each independent variable of Ctified Public Accountant office (X1) size, client company size (X2), managerial ownership (X3) and audit Delay (X4) to dependent variable of switching auditor ( Y). The partial hypothesis design that has been compiled by the author is as follow Table 4:17 the following will show whether there is a significant influence between each independent variable to the related variables.

Table 4.17

Variables in the Equation

B S.E. Wald df Sig. Exp(B)

Step 1a

Ukuran_KAP -1,611 1,619 ,990 1 ,320 ,200

Ukuran_Perusahaan ,457 ,406 1,263 1 ,261 1,579

Kepemilikan_Manajerial 6,392 2,809 5,177 1 ,023 596,774

Audit_Delay ,032 ,020 2,475 1 ,116 1,032

Constant -18,052 11,617 2,415 1 ,120 ,000

a. Variable(s) entered on step 1: CPA_Size, Copy's_ Size, Managerial_Ownerships, Audit_Delay.


4.7. Based on Table 4:17 the results of testing can be explained as follows: 1. Based on the above table it can be seen that Certified Public Accountant Office size variables have

a significance level (ɑ ) of 0.320. Figures 0.320> 0.05. This indicates that Ho1 is accepted and Ha1 is rejected, meaning that the size of Certified Public Accountant Office size does not affect the probability of switching auditor. The statistically significant Certified Public Accountant Office size variable in the table above shows the value of negative regression coefficient of -1.611 with probability level (Sig.) Of 0.320 is greater than ɑ = 0.05. Since the probability level (Sig.) Is greater than ɑ , the first hypothesis is unsuccessful. Thus the Certified Public Accountant Office size has no significant effect on the switching auditor.

2. Based on the above table it can be seen that the variable size of the company has a significance level (a) of 0.261. The number is 0.261> 0.05. This indicates that Ho2 is accepted and Ha2 is rejected, meaning that the size of the company does not affect the probability of the switching auditor. The statistically significant Certified Public Accountant Office size variable in the above table shows the positive regression coefficient value of 0.457 with the probability level (Sig.) Of 0.261 greater than ɑ = 0.05. Since the probability level (Sig.) Is greater than ɑ , the second


785

hypothesis is unsuccessful. Thus the size of the client company has no significant effect on the switching auditor.

3. Based on the above table it can be seen that managerial ownership variable has a significance level (a) of 0.023. Figures 0.023 <0.05. This indicates that Ho3 is rejected and Ha3 is accepted, meaning that managerial ownership affects the probability of switching auditor. The statistically significant Certified Public Accountant Office size variables in the table above show the positive regression coefficient value of 6.392 with the probability level (Sig.) Of 0.023 is smaller than ɑ = 0.05. Since the probability level (Sig.) Is less than ɑ the third hypothesis is successfully supported. Thus, managerial ownership significantly influences the switching auditor.

4. Based on the above table it can be seen that Certified Public Accountant Office size variables have a significance level (a) of 0.116. Figures 0.116> 0.05. This indicates that Ho4 is accepted and Ha4 is rejected, meaning that the magnitude of audit delay does not affect the probability of the switching auditor. The variable of statistical delay delay in the table above shows the positive regression coefficient of 0.032 with the probability level (Sig.) Of 0.116 greater than ɑ = 0.05. Since the probability level (Sig.) Is greater than ɑ , the fourth hypothesis is unsuccessfully supported. Thus audit delay has no significant effect on the switching auditor.

5.1 Conclusions 1. Certified Public Accountant Office Size has no corelation toward auditor switching. 2. Clients's Company Size has no correlation toward auditor switching. 3. Managerial Ownerships significantly correlated toward auditor switching. 4. Audit delay has no correlation toward auditor switching.

5.2 Suggestions Suggestions based on some limitations as mentioned above are as follows: 1. The next researcher is expected to provide relevant information as a reference in conducting new studies on switching auditors taking into account other independent variables outside of this study, such as audit fees, financial distress, change of management, company sales rate, audit opinion, audit opinion going concern, public ownership, audit quality, institutional ownership and so forth. 2. The researcher is then expected to consider obtaining the research object of all companies listed in Indonesia Stock Exchange (BEI) so that it can be generalized. 3. The next researcher is also expected to conduct research with the object of research at other companies, such as property and real estate sub sector, mining sector, manufacturing company and in different years.

References Agoes, Soekrisno. 2014. Auditing Petunjuk Praktis Pemeriksaan Oleh Akuntan Publik. Edisi 4- Buku

1. Jakarta: Salemba Empat. Arens, Alvin A., Randal J.Elder dan Mark S Beasley. 2015. Auditing dan Jasa Assurance:Pendekatan

Terintegrasi. Edisi Kelima belas-Jilid 1. Jakarta : Erlangga. Elder, Randal J, Mark S Beasley, dan Alvin A. Arens. 2013. Jasa Audit dan Assurance Pendekatan

Terpadu (Adaptasi Indonesia). Edisi Buku 1. Jakarta: Salemba Empat. Fahmi, Irham. 2013. Analisis Laporan Keuangan. Bandung: Alfabeta Ghozali, Imam. 2016. Aplikasi Analisis Multivariate dengan Program IBM SPSS 23. Semarang:

Universitas Diponegoro. Hery. 2016. Analisis Laporan Keuangan. Jakarta: PT Grasindo. Institut Akuntan Publik Indonesia. 2013. Standar Profesional Akuntan Publik. Jakarta: Salemba

Empat. Ikatan Akuntan Publik Indonesia. 2015. Standar Akuntansi Keuangan. Jakarta: IAI. Kasmir. 2015. Analisis Laporan Keuangan. Jakarta: PT Rajagrafindo Persada.


786

L.Shafnam, Selvi, L.Shammi ,2014 . Privacy-Preserving Confidential Auditing For Data Storage Security Using Cloud Computing. International Journal of Innovations in Scientific and Engineering research.Vol.1 ,No.3.

Messier, William F., Steven M. Glover dan Douglas F. Prawitt. 2014. Jasa Audit dan Assurance:

Pendekatan Sistematis. Edisi 8-Buku 1. Jakarta: Salemba Empat. Silalahi, Ulber. 2015. Metode Penelitian Sosial Kuantitatif. Bandung:PT Refika Aditama. Sugiyono. 2015. Metode Penelitian Kuantitatif Kualitatif dan R&D. Bandung: Alfabeta. Angruningrum, Silvia dan Wirakusuma, Made Gede. 2013, Pengaruh Profitabilitas, Leverage,

Kompleksitas Operasi, Reputasi KAP Dan Komite Audit Pada Audit Delay, E-Jurnal Akuntansi Universitas Udayana 5.2, ISSN : 2302-8556.

Aprianti, Siska dan Hartaty, Sri. 2016, Pengaruh Ukuran KAP, Ukuran Perusahaan Klien Dan Tingkat

Pertumbuhan Perusahaan Terhadap Auditor Switching. E-Jurnal Akuntansi Politeknik Sekayu, ISSN : 2407-2184.

Ardianingsih, Arum. 2014, Pengaruh Audit Delay Dan Ukuran KAP Terhadap Audit Switching :

Kajian Dari Sudut Pandang Klien. Jurnal Akuntansi Dan Bisnis Fakultas Ekonomi Universitas Pekalongan.

Astyorini, Carolina Dwi. 2015, Pengaruh Kepemilikan Manajemen, Pertumbuhan Perusahaan, Audit

Delay Dan Reputasi KAP Terhadap Pergantian Auditor Secara Voluntary, Universitas Senata Dharma.

Effendi, Mareti. 2015, Analisis Pengaruh Opini Audit, Ukuran Kantor Akuntan Publik (KAP), Ukuran Perusahaan Klien Dan Kepemilikan Manajerial Terhadap Auditor Switching. Universitas Budi Luhur, ISSN : 2252-7141.

Firmanda, Ridho Dan Kharis Raharjo. 2015, Pengaruh Kepemilikan Manajerial, Kepemilikan

Institusional, Kebijakan Hutang, Profitabilitas, Ukuran Perusahaan Dan Cash Position Terhadap Kebijakan Deviden. Jurnal Ilmiah Akuntansi Universitas Pandanaran. Vol 1.1, ISSN : 2442-4056.

Johari, Muhammad Habib Takeshi Dan Hadiprajitno, P. Basuki. 2015, Pengaruh Corporate

Governance Terhadap Voluntary Auditor Switching, E-Jurnal – S1. Undip.ac.id, Vol 4, ISSN : 2337-3806.

Mahantara, Gede Widya. 2013. Faktor-Faktor Yang Mempengaruhi Pergantian Kantor Akuntan

Publik Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Akuntansi Dan Bisnis. Mahindrayogi, Koman Trisdia Dan Suputra, IDG Dharma. 2016, Faktor-Faktor Yang Mempengaruhi

Voluntary Auditor Switching Pada Perusahaan Manufaktur Di Bursa Efek Indonesia, E-Jurnal Akuntansi Universitas Udayana 14.3, ISSN : 2302-8559.

Ningsih, I Gusti Ayu Puspita Sari Dan Widhiyani, Ni Luh Sari. 2015, Pengaruh Ukuran Perusahaan,

Laba Operasi, Solvabilitas Dan Komite Audit Pada Audit Delay, E-Jurnal Akuntansi Universitas Udayana 12.3, ISSN : 2302-8556.

Pradhana, Made Aditya BayuDan Suputra, L.D.G. Dharma. 2015, Pengaruh Audit Fee, Going

Concern, Financial Distress, Ukuran Perusahaan, Pergantian Manajemen Pada Pergantian Auditor, E-Jurnal Akuntansi Universitas Udayana 11.3, ISSN : 2302-8556.

Pradita, Silvya Ayu Putri. 2015, Analisis Hubungan Auditor-Klien Faktor-Faktor Yang

Mempengaruhi Auditor Switching, Universitas Dipenogoro Semarang. Praptika, Putu Yulia Hartanti Dan Rasmini, Ni Ketut. 2016, Pengaruh Audit Tenure, Pergantian

Auditor Dan Financial Distress Pada Audit Delay Pada Perusahaan Consumer Goods, E-Jurnal Akuntansi Universitas Udayana, Vol 15.3, ISSN : 2302-8556.

Pratini, I.G.A Asti Dan Astika, I.B Putra. 2013, Fenomena Pergantian Auditor Switching Di Bursa

Efek Indonesia, E-Jurnal Akuntansi Udayana 5.2, ISSN : 2302-8556. Prawitri, Ni Made Puspa Dan Yadyana, Ketut. 2015, Pengaruh Audit Delay, Opini Audit, Reputasi

Auditor Dan Pergantian Manajemen Pada Voluntary Auditor Switching, E-Jurnal Akuntansi Universitas Udayana, Vol 10.1, ISSN : 2302-8578.

Puspitasari, Ketut Dian. 2014, Pengaruh Ukuran Perusahaan, Anak Perusahaan, Laverage Dan Ukuran

KAP Terhadap Audit Delay. Jurnal Akuntansi Dan Bisnis, 8 (2) : 283-299


787

Ramdhoni, Yogie, Dkk. 2014, Pengaruh Tingkat Kesulitan Keuangan Perusahaan, Risiko Litigasi, Struktur Kepemilikan Manajerial Dan Debt Convenant Terhadap Konservatisme Akuntansi. JOM FEKON. Vol 1, No. 2, Hal. 1-20.

Robbitasari, Ainurrizki Putri.2013, Pengaruh Opini Audit Going Concern, Kepemilikan Institusional Dan Audit Delay Pada Voluntary Auditor Switching. Jurnal Akuntansi Dan Bisnis, 5 (3) : 652-665.

Ruroh, Farida Mas. 2016. Pengaruh Pergantian Manajemen, Kesulitan Keuangan, Ukuran KAP Dan

Audit Delay Terhadap Auditor Switching. Universitas Negeri Yogyakarta. Sidhi, Bagus Ananta Diva Muria Dan Wirakusuma, Made Gede. 2015, Pengaruh Ukuran Perusahaan,

Tingkat Penjualan Perusahaan Dan Reputasi KAP Pada Pergantian KAP, E-Jurnal Akuntansi Universitas Udayana. Vol 13,3, ISSN : 2303-1018.

Suarjana, I Wayan Dan widhiyani, Ni Luh Sari. 2015, Faktor Klien Yang Mempengaruhi Pergantian

Kantor Akuntan Publik Di Bursa Efek Indonesia, E-Jurnal Akuntansi Universitas Udayana 10.1, ISSN : 2302-8556.

Sukadana, I Dewa Dan Wirakusuma, Made Gede. 2016, Reputasi Kantor Akuntan Publik

Memoderasi Opini Audit Going Concern Dan Audit Delay Terhadap Auditor Switching, E-Jurnal Akuntansi Universitas Udayana. Vol 16,2, ISSN : 2302-8556.

Wea, Alexandros Ngala Solo Dan Murdiawati, Dewi. 2015, Faktor-Faktor Yang Mempengaruhi

Auditor Switching Secara Voluntary Pada Perusahaan Manufaktur, Jurnal Bisnis Dan Ekonomi, ISSN : 1412-3126.

Peraturan Menteri Keuangan Republik Indonesia Nomor: 17/PMK.01/2008 Tentang Jasa Akuntan

Publik. Peraturan Pemerintah Republik Indonesia Nomor: 20 Tahun 2015 Tentang Praktik Akuntan Publik. BAPEPAM Nomor: KEP-346/BL/2011 Tentang Penyampaian Laporan Keuangan Berkala Emiten

Atau Perusahaan Publik. BAPEPAM Nomor: KEP-11/PM/1997 Tentang Pedoman Mengenai Bentuk dan Isi Pernyataan

Pendaftaran Dalam Rangka Penawaran Umum Oleh Perusahaan Menengah Atau Kecil.

Internet www.finance.detik.com www.sahamok.com www.idx.co.id www.iapi.or.id


788

789

790

Documents

· Rinny Meidiyustiani Faculty of Economics and Business, Universitas Budi Luhur Email : [email protected] ABSTRACT The purpose of this study is to determine the factors that