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Original Research Article
Audit quality to manage sustainable auditor reputation
Meinie Susanty*, Juniati Gunawan, Roy Sembel and Waluyo
Meinie Susanty*, Juniati Gunawan, Roy Sembel and Waluyo
Accounting Department, Trisakti University, Indonesia
*Corresponding Author Email:meinie_sg(at)yahoo.com
Article Number: | Pages: | | DOI:
Received: May 29, 2015 Accepted: July 23, 2015 Published: July 25, 2015
Abstract
The purpose of this paper is to examine the relationship between audit quality and the sustainable reputation of auditors in Indonesia in relation to the implementation of a regulation by the Finance Minister of the Republic of Indonesia on public accountant audit services (PMK no.17/PMK.01/2008). This study applies quantitative method by conducting a survey. Multiple regressions is used to evaluate the relationship between auditors’ opinion and their sustainable reputations. The sample selection is based on convenience sampling derived from the auditors’ opinions to seek their own internal competitive advantages. Audit quality is measured with composite measurement dimension – audit quality metric score (AQMS), namely: size, industry specialization, audit tenure, client importance, and going concern opinion. The findings suggest that audit quality influence significantly and positively to the sustainable reputation of auditor.
Keywords: Audit quality, Audit Quality Metric Score (AQMS), sustainable reputation, auditor, public Accountant Firm.