Do Western Hegemony Exist in the Selection of Independent Auditors?

DOI

10.2991/aebmr.k.200915.078How to use a DOI?

Keywords

institutional ownership, government, management, affiliated accounting firm, Gidden

Abstract

Most business people perceive that big four affiliated public accounting firms have better quality than others. We use the mixing method to uncover the phenomena of internationalization among the auditor selections. This study only explores the empirical aspects of western hegemony in auditor selection but also present. Those Charged with Governance’s subjective perceptions of the Westernization in auditing practice. This study uses a sample of companies in the non-financial sector listed on the Indonesia Stock Exchange during 2016-2018. Preliminary analysis results show that institutional and individual ownership are more inclined to choose affiliated big-four auditors than the local ones. Whereas when compared to the non-big four affiliated accounting firms, institutional ownership is consistently more interested in the big four affiliated. In further analysis, local institutional ownership seems to prefer international affiliated accounting firms. Foreign institutional ownership always shows a preference for the big four affiliated accounting firms. Regarding individual ownership, researchers divide ownership into an independent, board of the director and management. The analysis proves that only management ownership has a role in choosing auditors. The ownership management tends to choose international affiliated accounting firms. Based on the subjective perception, one of the audit committees revealed that there were crucial differences in audit quality between the local and the international affiliated public accounting firms. Affiliated auditors are indeed far more thorough than local. Using Gidden’s global modernity theory, we conclude that globally affiliated auditors can create new expertise needed by their users that is different from the past.

Copyright

© 2020, 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  - Riesanti Edie Wijaya
AU  - Sally Kurniawan
PY  - 2020
DA  - 2020/09/15
TI  - Do Western Hegemony Exist in the Selection of Independent Auditors?
BT  - Proceedings of the International Conference on Management, Accounting, and Economy (ICMAE 2020)
PB  - Atlantis Press
SP  - 347
EP  - 351
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200915.078
DO  - 10.2991/aebmr.k.200915.078
ID  - Wijaya2020
ER  -