PENGARUH MASA PERIKATAN AUDIT DAN UKURAN KAP TERHADAP KUALITAS AUDIT (Studi Empiris Pada Perusahaan Go Public Yang Terdaftar Di BEI Tahun 2010 Kecuali Perusahaan Jasa Dan Keuangan)

Abstract

The company management was entrusted to run the enterprise operating activities. To be responsible for the trust given, the management reports the company operating activities result for the company owner through financial report. The role of auditor is required to mediate the interests of management and owners so as to avoid information asymmetry, moral hazard, and increase owner confidence of the management. Auditor spearheading the quality of information contained in financial statements prepared by management through quality audit. However, the audit becomes unqualified when auditor independence is reduced. One factor that may affect the auditor independence is the audit tenure. In addition, the Big4 audit firm is perceived to provide higher quality audit than non- Big4 audit firm because it has faster learning and getting the desired connection. This study aims to examine the effect of audit tenure and audit firm size to audit quality. Using the earnings surprise benchmark approach, the company earnings become the indicator of audit quality. This approach was adopted by Rossieta and Wibowo from one of Carey and Simnett audit quality analysis models. This research was carried out by the documentation method of all companies listed on Indonesia Stock Exchange in 2010 as the population which contain 430 companies. Through purposive sampling method, the sample of 106 audited financial statements of manufacturing companies listed on the Indonesia Stock Exchange in 2010 was obtained. To analyze the effect of independent variables on the dependent variable, logistic regression analysis is used, preceded by a multikolonieritas test. The results show that the audit tenure does not affect the audit quality. While the audit firm size significantly influence the audit quality with a negative direction. So it can be concluded that larger audit firm is not always followed by a higher audit quality.