Determinants of Auditor Reputation, Audit Committee, Audit Delay and Audit Fee on Audit Quality

This study investigates the determinants of audit quality in consumer goods manufacturing companies listed on the Indonesia Stock Exchange between 2019 and 2023. Using a descriptive quantitative method and purposive sampling, secondary data were collected from annual reports and analyzed with logis...

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Main Authors: Viona Permata Putri, Muhammad Abdul Aris
Format: Article
Language:English
Published: Universitas KH Abdul Chalim, Prodi Ekonomi Syariah 2025-06-01
Series:Indonesian Interdisciplinary Journal of Sharia Economics
Subjects:
Online Access:https://e-journal.uac.ac.id/index.php/iijse/article/view/7462
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author Viona Permata Putri
Muhammad Abdul Aris
author_facet Viona Permata Putri
Muhammad Abdul Aris
author_sort Viona Permata Putri
collection DOAJ
description This study investigates the determinants of audit quality in consumer goods manufacturing companies listed on the Indonesia Stock Exchange between 2019 and 2023. Using a descriptive quantitative method and purposive sampling, secondary data were collected from annual reports and analyzed with logistic regression to examine the effects of auditor reputation, audit committee composition, audit delay, and audit fee on audit quality, measured by whether a Big Four auditor audits a firm. The results indicate that auditor reputation, proxied by the number of partners in the audit firm, does not significantly affect audit quality. In contrast, the audit committee significantly enhances audit quality, highlighting the importance of effective oversight in audit processes. Audit delay shows no significant impact, suggesting that the timing of audit completion is not a direct indicator of audit quality. Meanwhile, audit fees positively influence audit quality, as adequate fees allow auditors to perform more thorough and reliable audits. These findings emphasize the critical roles of audit committee effectiveness and sufficient audit fees in maintaining high audit standards. Limitations of this study include its focus on a single industry sector, a limited observation period, and a narrow set of variables. Future research should expand the scope to other industries, lengthen the study duration, and include additional factors to deepen the understanding of audit quality determinants.
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spelling doaj-art-a44dffd7df0a494195dd0afd6f597ce62025-08-20T02:07:16ZengUniversitas KH Abdul Chalim, Prodi Ekonomi SyariahIndonesian Interdisciplinary Journal of Sharia Economics2621-606X2025-06-0182Determinants of Auditor Reputation, Audit Committee, Audit Delay and Audit Fee on Audit QualityViona Permata Putri0Muhammad Abdul Aris1Universitas Muhammadiyah Surakarta, Surakarta, IndonesiaUniversitas Muhammadiyah Surakarta, Surakarta, Indonesia This study investigates the determinants of audit quality in consumer goods manufacturing companies listed on the Indonesia Stock Exchange between 2019 and 2023. Using a descriptive quantitative method and purposive sampling, secondary data were collected from annual reports and analyzed with logistic regression to examine the effects of auditor reputation, audit committee composition, audit delay, and audit fee on audit quality, measured by whether a Big Four auditor audits a firm. The results indicate that auditor reputation, proxied by the number of partners in the audit firm, does not significantly affect audit quality. In contrast, the audit committee significantly enhances audit quality, highlighting the importance of effective oversight in audit processes. Audit delay shows no significant impact, suggesting that the timing of audit completion is not a direct indicator of audit quality. Meanwhile, audit fees positively influence audit quality, as adequate fees allow auditors to perform more thorough and reliable audits. These findings emphasize the critical roles of audit committee effectiveness and sufficient audit fees in maintaining high audit standards. Limitations of this study include its focus on a single industry sector, a limited observation period, and a narrow set of variables. Future research should expand the scope to other industries, lengthen the study duration, and include additional factors to deepen the understanding of audit quality determinants. https://e-journal.uac.ac.id/index.php/iijse/article/view/7462audit committeeaudit delayaudit feeaudit qualityauditor reputation
spellingShingle Viona Permata Putri
Muhammad Abdul Aris
Determinants of Auditor Reputation, Audit Committee, Audit Delay and Audit Fee on Audit Quality
Indonesian Interdisciplinary Journal of Sharia Economics
audit committee
audit delay
audit fee
audit quality
auditor reputation
title Determinants of Auditor Reputation, Audit Committee, Audit Delay and Audit Fee on Audit Quality
title_full Determinants of Auditor Reputation, Audit Committee, Audit Delay and Audit Fee on Audit Quality
title_fullStr Determinants of Auditor Reputation, Audit Committee, Audit Delay and Audit Fee on Audit Quality
title_full_unstemmed Determinants of Auditor Reputation, Audit Committee, Audit Delay and Audit Fee on Audit Quality
title_short Determinants of Auditor Reputation, Audit Committee, Audit Delay and Audit Fee on Audit Quality
title_sort determinants of auditor reputation audit committee audit delay and audit fee on audit quality
topic audit committee
audit delay
audit fee
audit quality
auditor reputation
url https://e-journal.uac.ac.id/index.php/iijse/article/view/7462
work_keys_str_mv AT vionapermataputri determinantsofauditorreputationauditcommitteeauditdelayandauditfeeonauditquality
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