Does The Implementation Of SA 600 Cause Shifting Of Audit Clients And Reducing Audit Quality? Evidence From Indonesia
Keywords:Audit Quality, Group Audit, SA 600, Shifting of Audit Clients
This research was conducted to investigate the impact of implementation of SA 600 on shifting of audit clients and reducing of audit quality in Indonesia. SA 600 was issued in 2013 in order to mitigate the problem of audit failure in group entities where the group auditor is responsible for the entire audit process, particularly the audit quality in component entities or subsidiaries. In its implementation, SA 600 has received several complaints related to audit quality and shifting of audit clients. The research method is using primary data from questionnaires that was distributed to auditors and focus group discussions with auditors and users. The respondents of this research are 367 auditors of which 63% were audit partners. This research found that SA 600 can improve audit quality when its implementation is carried out according to audit standards. However, the implementation of SA 600 has an impact on the shifting of component or subsidiary company clients which move to the group or parent company auditors.
Jurnal Reviu Akuntansi dan Keuangan is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).