The Influence of KAP Size, Audit Fee and Audit Tenure on Audit Quality through Audit Rotation as an Intervening Variable

(Case Study: Manufacturing Companies in the Multiple Industrial Sector Listed on the Indonesia Stock Exchange)

Abstract

This study aims to examine and analyze audit quality in industrial industrial sector manufacturing companies listed on the Indonesia Stock Exchange. The variables tested include KAP Size, Audit Fee, Audit Tenure and Audit Rotation as intervening variables. This research involves manufacturing companies in various industrial sectors that are listed on the Indonesia Stock Exchange during the 2017-2021 period. The sample selection was carried out using purposive sampling method. The data used is external data, obtained through www.idx.co.id. The data analysis process was carried out by calculating the PLS Algorithm using SmartPLS and then testing the hypothesis. The results of the study show that Audit Fees, Audit Tenure have an effect on Audit Quality, KAP Size and Audit Fees have an effect on Audit Rotation. KAP size has no effect on audit quality. Audit Tenure has no effect on Audit Rotation. Audit Rotation has no effect on Audit Quality. Audit Rotation is not able to mediate the effect of KAP Size, Audit Fee and Audit Tenure on Audit Quality.