Auditor Switching and Initial Audit Procedures: A Case Study

DOI

10.2991/aprish-18.2019.25How to use a DOI?

Keywords

accounting firm switching; auditor switching; communication with previous auditor; first-year audit; initial audit procedures.

Abstract

This paper discusses the reasons behind auditor or accounting firm switching and studies initial audit procedures. Auditors need to analyze the real reason behind auditor switching in order to make an appropriate decision during the client acceptance stage (an auditee's willingness to share the real reason for auditor switching is questionable). Broadly speaking, there are two types of auditor switching: mandatory and voluntary. Our finding show that the main driver of voluntary auditor switching for the specific firm studied in this case (referred to with the alias "Superannuation 12") was to improve audit quality. A first-year audit will most likely have a higher risk than a recurring audit so auditors need to add several extended audit procedures as safeguards. These extended audit procedures should be properly implemented in all of the audit stages, except reporting stage. Therefore, the audit period for an initial audit is longer than for a recurring audit. The auditing firm involved in this case ( referred to as "AP 111") had some problems when performing initial audit procedures, which led the author to several suggestions for how this could be addressed authorities and the accounting firm itself.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Erly Satya Graha Putri
AU  - Robert Porhas Tobing
PY  - 2019/10
DA  - 2019/10
TI  - Auditor Switching and Initial Audit Procedures: A Case Study
BT  - Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)
PB  - Atlantis Press
SP  - 205
EP  - 211
SN  - 2352-5398
UR  - https://doi.org/10.2991/aprish-18.2019.25
DO  - 10.2991/aprish-18.2019.25
ID  - Putri2019/10
ER  -