Is Audit Quality at Risk in the Covid-19 Era? The Moderating Role of Client Complexity
This study investigated the association between low audit quality and the tendency to issue modified audit opinions (MAO), using the proxy of non-Big Four audit firms and non-industry-specialized auditors. It also investigated the moderating effect of client complexity on the relationship between au...
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| Format: | Article |
| Language: | English |
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Universitas Syiah Kuala
2025-04-01
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| Series: | Jurnal Dinamika Akuntansi dan Bisnis |
| Subjects: | |
| Online Access: | https://jurnal.usk.ac.id/JDAB/article/view/41756 |
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| _version_ | 1849424099781115904 |
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| author | Michelle Thalia Antonius Herusetya |
| author_facet | Michelle Thalia Antonius Herusetya |
| author_sort | Michelle Thalia |
| collection | DOAJ |
| description | This study investigated the association between low audit quality and the tendency to issue modified audit opinions (MAO), using the proxy of non-Big Four audit firms and non-industry-specialized auditors. It also investigated the moderating effect of client complexity on the relationship between audit quality and MAO, and examines the effect of COVID-19 pandemic on these relationships. The samples were all listed firms on the Indonesia Stock Exchange, except for financial industry over a period of 2018 – 2020 (1,020 firm-years observations). Using panel logistic regression analyses, this study reveals that non-Big Four audit firms have a greater tendency to issue MAO, with no association between non-industry-specialized auditors and the tendency to issue MAO. This study also identifies that client complexity represents a moderator that enhances the positive correlation between non-Big Four audit firms and MAO. Lastly, no evidence found of any difference in the audit quality between pre- and during COVID-19 pandemic. |
| format | Article |
| id | doaj-art-46561d4e272243098d626a73dcc3ef42 |
| institution | Kabale University |
| issn | 2355-9462 2528-1143 |
| language | English |
| publishDate | 2025-04-01 |
| publisher | Universitas Syiah Kuala |
| record_format | Article |
| series | Jurnal Dinamika Akuntansi dan Bisnis |
| spelling | doaj-art-46561d4e272243098d626a73dcc3ef422025-08-20T03:30:20ZengUniversitas Syiah KualaJurnal Dinamika Akuntansi dan Bisnis2355-94622528-11432025-04-01121658810.24815/jdab.v12i1.4175620177Is Audit Quality at Risk in the Covid-19 Era? The Moderating Role of Client ComplexityMichelle Thalia0Antonius Herusetya1Universitas Pelita HarapanUniversitas Pelita HarapanThis study investigated the association between low audit quality and the tendency to issue modified audit opinions (MAO), using the proxy of non-Big Four audit firms and non-industry-specialized auditors. It also investigated the moderating effect of client complexity on the relationship between audit quality and MAO, and examines the effect of COVID-19 pandemic on these relationships. The samples were all listed firms on the Indonesia Stock Exchange, except for financial industry over a period of 2018 – 2020 (1,020 firm-years observations). Using panel logistic regression analyses, this study reveals that non-Big Four audit firms have a greater tendency to issue MAO, with no association between non-industry-specialized auditors and the tendency to issue MAO. This study also identifies that client complexity represents a moderator that enhances the positive correlation between non-Big Four audit firms and MAO. Lastly, no evidence found of any difference in the audit quality between pre- and during COVID-19 pandemic.https://jurnal.usk.ac.id/JDAB/article/view/41756covid-19client complexitynon-big fournon-industry specialist auditormodified audit opinion |
| spellingShingle | Michelle Thalia Antonius Herusetya Is Audit Quality at Risk in the Covid-19 Era? The Moderating Role of Client Complexity Jurnal Dinamika Akuntansi dan Bisnis covid-19 client complexity non-big four non-industry specialist auditor modified audit opinion |
| title | Is Audit Quality at Risk in the Covid-19 Era? The Moderating Role of Client Complexity |
| title_full | Is Audit Quality at Risk in the Covid-19 Era? The Moderating Role of Client Complexity |
| title_fullStr | Is Audit Quality at Risk in the Covid-19 Era? The Moderating Role of Client Complexity |
| title_full_unstemmed | Is Audit Quality at Risk in the Covid-19 Era? The Moderating Role of Client Complexity |
| title_short | Is Audit Quality at Risk in the Covid-19 Era? The Moderating Role of Client Complexity |
| title_sort | is audit quality at risk in the covid 19 era the moderating role of client complexity |
| topic | covid-19 client complexity non-big four non-industry specialist auditor modified audit opinion |
| url | https://jurnal.usk.ac.id/JDAB/article/view/41756 |
| work_keys_str_mv | AT michellethalia isauditqualityatriskinthecovid19erathemoderatingroleofclientcomplexity AT antoniusherusetya isauditqualityatriskinthecovid19erathemoderatingroleofclientcomplexity |