The Influence of Social Ties, Audit Tenure and Audit Fee towards Audit Quality

Authors

  • Teguh Ariyanto S.E Airlangga University, Indonesia
  • Dr. Zaenal Fanani SE Airlangga University, Surabaya, Indonesia
  • MSA.Ak Airlangga University, Surabaya, Indonesia

DOI:

https://doi.org/10.31695/IJASRE.2020.33902

Keywords:

Social Ties, Audit Tenure, Audit Fees, Audit Quality

Abstract

This research is a quantitative study which aims to obtain empirical evidence regarding the influence of the external auditor's social ties with the CEO / CFO, the external auditor's social ties with the audit committee, audit tenure, and audit fees on audit quality. The sample of this research is 166 manufacturing companies which are listed on the Indonesia Stock Exchange (IDX) in the period 2017 to 2018. The data collection uses the purposive sampling. The data analysis technique used multiple regression statistical tests and T statistical tests.

The results of this study indicate that the influence of the auditor's external social ties with the CEO / CFO on audit quality shows no significant effect (0.594> 0.1). The second hypothesis is that the effect of the auditor's external social ties with the audit committee shows no significant effect (0.946> 0.1). The third hypothesis, the effect of audit tenure on audit quality, shows no significant effect (0.217> 0.1). The fourth hypothesis, the effect of audit fees on audit quality, shows that there is no significant effect (0.331> 0.1). It can be that the external auditors have worked professionally and independently which, despite the existence of social and economic ties, it does not affect the assessment of an external auditor.

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How to Cite

Teguh Ariyanto S.E, Dr. Zaenal Fanani SE, & MSA.Ak. (2020). The Influence of Social Ties, Audit Tenure and Audit Fee towards Audit Quality. International Journal of Advances in Scientific Research and Engineering (IJASRE), ISSN:2454-8006, DOI: 10.31695/IJASRE, 6(10), 138–145. https://doi.org/10.31695/IJASRE.2020.33902

Issue

Vol. 6 No. 10: October-2020

Section

Articles

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Copyright (c) 2020 Teguh Ariyanto S.E , Dr. Zaenal Fanani SE, MSA.Ak

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