Proceedings of the 12th International Conference on Business and Management Research (ICBMR 2018)

Analysis of the Implementation of Indonesian Government Regulation Number 20 Year 2015 Related to Tenure and Rotation of Accounting Firms and Public Accountants to Audit Quality

Authors
Muhammad Faisal, Muthia Prima Nirmala, Fitriany, Sylvia Veronica, Ratna Wardhani
Corresponding Author
Muhammad Faisal
Available Online March 2019.
DOI
10.2991/icbmr-18.2019.9How to use a DOI?
Keywords
audit tenure, audit rotation, audit quality, regulation
Abstract

This study examines government regulations related to public audit services performed by the accounting firm and public accountant as regulated in Government Regulation (PP) No. 20 of 2015, which in this case, eliminates limits for accounting firm (AF) tenure and extends public accountant (PA) tenure from three years into five years. This research also analyzed the previous regulations of the Minister of Finance Decree No. 359/KMK.06/2003, Minister of Finance Regulation No. 17/PMK.01/2008, which are related to the existence of real and pseudo-rotation of AF. This research used 195 non-financial industry companies listed in the Indonesia Stock Exchange with pre-regulation research period is the year 2008-2014 and post-regulation is the year 2015-2016. The results show that AF tenure has no quadratic effect on audit quality, while tenure of PA has a concave quadratic effect on audit quality in the post-regulation period. This study also found that the pseudo-rotation of AF had a positive effect on audit quality in the pre-regulation period and did not affect the post-regulation period, while it was not found that the real AF rotation had an effect on audit quality.

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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Volume Title
Proceedings of the 12th International Conference on Business and Management Research (ICBMR 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
March 2019
ISBN
10.2991/icbmr-18.2019.9
ISSN
2352-5428
DOI
10.2991/icbmr-18.2019.9How to use a DOI?
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/).

Cite this article

TY  - CONF
AU  - Muhammad Faisal
AU  - Muthia Prima Nirmala
AU  - Fitriany
AU  - Sylvia Veronica
AU  - Ratna Wardhani
PY  - 2019/03
DA  - 2019/03
TI  - Analysis of the Implementation of Indonesian Government Regulation Number 20 Year 2015 Related to Tenure and Rotation of Accounting Firms and Public Accountants to Audit Quality
BT  - Proceedings of the 12th International Conference on Business and Management Research (ICBMR 2018)
PB  - Atlantis Press
SP  - 49
EP  - 54
SN  - 2352-5428
UR  - https://doi.org/10.2991/icbmr-18.2019.9
DO  - 10.2991/icbmr-18.2019.9
ID  - Faisal2019/03
ER  -