The Effect of Financial Distress, Audit Opinion and Management Change on Auditor Switching

Abstract

The purpose of this research is to provide empirical data on the effects of audit opinion, management change, and financial hardship on auditor switching in companies operating in the basic and chemical industrial sectors that are listed on the Indonesia Stock Exchange (IDX) between 2018 and 2023. Purposive sampling was used in this research, and a total of 70 organisations that fit the preset sample criteria were chosen. Panel data regression analysis was used in this research for data analysis, while E-Views 12 was used for data processing. The study's conclusions indicate that although financial crises and management changes have little effect on auditor switching, audit opinion has a negative impact on it.