Influence Characteristics Auditor Partner and Kap Size on Audit Quality

Authors

  • Kadlina Universitas Esa Unggul
  • Agus Munandar

DOI:

https://doi.org/10.26905/afr.v8i2.15232

Keywords:

Audit partner characteristics, Audit quality, KAP size

Abstract

This study aims to examine the effect of auditor partner characteristics and Public Accounting Firm (KAP) size on audit quality. The auditor partners’ characteristics include gender, level of education, work experience, level of busyness in the same industry, and domestic or international educational background. KAP size is determined by inclusion in Big Four public accounting firms, while audit fees or professional fees measure audit quality. Using panel data regression, the findings reveal that auditor partner experience significantly enhances audit quality, demonstrating the importance of technical expertise and professional judgment. Additionally, KAP size consistently influences audit quality, emphasizing the role of firm resources, specialize skills, and reputation.

JEL Classification: M40, M41, M42

DOI: https://doi.org/10.26905/afr.v8i2.15232

Downloads

Download data is not yet available.

References

Adekunle, S. A., Aigbavboa, C. O., & Ejohwomu, O. A. (2022). Understanding the BIM actor role: a study of employer and employee preference and availability in the construction industry. Engineering, Construction and Architectural Management, 31(13). https://doi.org/10.1108/ECAM-08-2021-0714

Agoes, S. (2018). Auditing (Buku 1): Petunjuk Praktis Pemeriksaan Akuntan Oleh Kantor Akuntan Publik. Salemba Empat, Buku 1.

Al Shanti, N. (2022). Determinants of Audit Quality. Asian Journal of Finance & Accounting, 14(1). https://doi.org/10.5296/ajfa.v14i1.18939

Alzghaibi, H. (2023). The gap between bachelor’s degree graduates in health informatics and employer needs in Saudi Arabia. BMC Medical Education, 23(1). https://doi.org/10.1186/s12909-023-04442-7

Aobdia, D., Lin, C. J., & Petacchi, R. (2015). Capital market consequences of audit partner quality. Accounting Review, 90(6), 2143–2176. https://doi.org/10.2308/accr-51054

Awaluddin, A., Ardianto, A., & Fanani, Z. (2022). Peran Moderasi Komite Audit pada Pengaruh Tenur, Rotasi Mandatori dan Rotasi Voluntari terhadap Kualitas Audit. E-Jurnal Akuntansi, 32(3). https://doi.org/10.24843/eja.2022.v32.i03.p12

Burke, J. J., Hoitash, R., Hoitash, U., & (Xia) Xiao, S. (2021). The costs and benefits of retirement policies at U.S. audit firms. Journal of Accounting and Public Policy, 40(4), 106824. https://doi.org/10.1016/j.jaccpubpol.2021.106824

Cameran, M., Campa, D., & Francis, J. R. (2018). Audit Effects of Accounting Firm Organization Levels. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3157562

Che, L., Langli, J. C., & Svanström, T. (2018). Education, experience, and audit effort. Auditing, 37(3), 91–115. https://doi.org/10.2308/ajpt-51896

Chi, W., Lisic, L. L., Myers, L. A., Pevzner, M., & Seidel, T. A. (2019). The consequences of providing lower-quality audits at the engagement partner level. Journal of International Accounting Research, 18(3), 63–82. https://doi.org/10.2308/jiar-52352

Choi, J. H., Kim, C., Kim, J. B., & Zang, Y. (2010). Audit office size, audit quality, and audit pricing. Auditing, 29(1). https://doi.org/10.2308/aud.2010.29.1.73

Febby, & Suhartono, S. (2020). Determinan Pemilihan Kantor Akuntan Publik (KAP). Jurnal Akuntansi, 9(2). https://doi.org/10.46806/ja.v9i2.758

Francis, J. R., & Yu, M. D. (2009). Big 4 office size and audit quality. Accounting Review, 84(5). https://doi.org/10.2308/accr.2009.84.5.1521

Fritter, J., & Harper, C. (2023). The importance of developing a financial audit process: An academic medical center perspective. Journal of Clinical and Translational Science, 7(1). https://doi.org/10.1017/cts.2023.650

Gul, F. A., Ma, S. M., & Lai, K. (2017). Busy auditors, partner-client tenure, and audit quality: Evidence from an emerging market. Journal of International Accounting Research, 16(1). https://doi.org/10.2308/jiar-51706

Gul, F. A., Wu, D., & Yang, Z. (2013). Do individual auditors affect audit quality? Evidence from archival data. Accounting Review, 88(6). https://doi.org/10.2308/accr-50536

Hay, D., Knechel, W. R., & Wong, N. (2004). Audit Fees: A Meta-Analysis of the Effect of Supply and Demand Attributes. Ssrn, 23(1). https://doi.org/10.2139/ssrn.512642

Hribar, P., Kravet, T., & Wilson, R. (2014). A new measure of accounting quality. Review of Accounting Studies, 19(1). https://doi.org/10.1007/s11142-013-9253-8

Ishaku, A., Junaidu, M., & Kurawa, A. (2020). Audit Quality And Earnings Management Of Listed Non-Financial Companies In Nigeria. Global Scientific Journal, 8(7).

Ismail, R., Rahman, R. A., & Ahmad, N. (2013). Risk Management Disclosure In Malaysian Islamic Financial Institutions: Pre- And Post-Financial Crisis. Journal of Applied Business Research (JABR), 29(2), 419. https://doi.org/10.19030/jabr.v29i2.7647

Ittonen, K., & Peni, E. (2012). Auditor’s Gender and Audit Fees. International Journal of Auditing, 16(1). https://doi.org/10.1111/j.1099-1123.2011.00438.x

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4). https://doi.org/10.1016/0304-405X(76)90026-X

Knechel. (2019). Audit lessons from the economic Crisis: Rethinking audit quality. In Audit lessons from the economic Crisis: Rethinking audit quality. https://doi.org/10.26481/spe.20090911rk

Lai, K. W. (2023). The Effect of Tenure, Specialization, Conservatism, and Fees on the Relationship between Going-Concern Opinions and Client Bankruptcy. Accounting and the Public Interest, 23(1). https://doi.org/10.2308/API-2022-005

Lawrence, A., Minutti-Meza, M., & Zhang, P. (2011). Can big 4 versus non-big 4 differences in audit-quality proxies be attributed to client characteristics? Accounting Review, 86(1). https://doi.org/10.2308/accr.00000009

Martani, D., Rahmah, N. A., Fitriany, F., & Anggraita, V. (2021). Impact of audit tenure and audit rotation on the audit quality: Big 4 vs non big 4. Cogent Economics and Finance, 9(1). https://doi.org/10.1080/23322039.2021.1901395

Nasution, D., & Jonnergård, K. (2017). Do auditor and CFO gender matter to earnings quality? Evidence from Sweden. Gender in Management, 32(5). https://doi.org/10.1108/GM-06-2016-0125

Pramono, A. J. (2023). Determination of Auditor Experience, Task-Specific Knowledge, and Implementation of Institution Governance Against Fraud Prevention. APTISI Transactions on Technopreneurship, 5(1). https://doi.org/10.34306/att.v5i1.276

Rahman, M. J., Zhu, H., Zhang, Y., & Hossain, M. M. (2024). Effect of female representation in audit committees on non-audit fees: evidence from China. Meditari Accountancy Research, 32(4). https://doi.org/10.1108/MEDAR-05-2023-1996

Reheul, A. M., Van Caneghem, T., Van den Bogaerd, M., & Verbruggen, S. (2017). Auditor gender, experience and reporting in nonprofit organizations. Managerial Auditing Journal, 32(6). https://doi.org/10.1108/MAJ-01-2016-1296

Sembiring, F. N. B. R., & Widuri, R. (2023). The Effect of Auditor Experience, Big Data and Forensic Audit As Mediating Variabels on Fraud Detection. Journal of Theoretical and Applied Information Technology, 101(6).

Suseno, T. N., Widita, A., Husna, N., & Mona, E. N. F. (2024). Impression Management in the Workplace: Internship Students’ Personal Branding Strategy. Proceedings of the 2024 18th International Conference on Ubiquitous Information Management and Communication, IMCOM 2024. https://doi.org/10.1109/IMCOM60618.2024.10418357

Viana, D. B. C., Lourenço, I., & Black, E. L. (2022). Financial distress, earnings management and Big 4 auditors in emerging markets. Accounting Research Journal, 35(5). https://doi.org/10.1108/ARJ-06-2021-0165

Wang, L., Dai, Y., Zhang, Y., & Ding, Y. (2020). Auditor gender and stock price crash risk: evidence from China. Applied Economics, 52(55). https://doi.org/10.1080/00036846.2020.1808576

Wang, L., Li, S., Zhang, B., Zhang, Y., & Peng, T. (2024). The effect of auditor experience on stock price crash risk. Accounting and Finance, 64(1). https://doi.org/10.1111/acfi.13150

Wibowo, Y. (2023). The Impact of Client Company Size, Time Budget Pressure and Auditor Fee on Audit Quality in Pharmaceutical Sub-Sector Companies Listed on The Indonesia Stock Exchange (IDX) Period 2017-2021. Journal of Accounting, Entrepreneurship and Technology (JAEF), 5(1). https://doi.org/10.37715/jaef.v5i1.3835

Yang, X., Li, M., & Yang, Y. (2023). Signing auditors’ experience and client investment efficiency. Asia-Pacific Journal of Accounting and Economics, 30(6). https://doi.org/10.1080/16081625.2021.2020667

Yuniantari; Ni Luh Devi, Merawati; Luh Komang, & Manuari; Ida Ayu Ratih. (2023). Pengaruh Kompetensi, Etika Auditor, Pengalaman Auditor, Fee Audit dan Audit Tenure Terhadap Kualitas Audit Pada Kantor Akuntan Publik di Bali. Journal Research of Accounting, 5(1), 139–154. https://doi.org/10.51713/jarac.v5i1.109

Additional Files

Published

2025-07-20

How to Cite

Kadlina, & Munandar, A. (2025). Influence Characteristics Auditor Partner and Kap Size on Audit Quality. AFRE (Accounting and Financial Review), 8(2), 70–78. https://doi.org/10.26905/afr.v8i2.15232

Issue

Vol. 8 No. 2 (2025): July 2025

Section

License

Copyright (c) 2025 AFRE (Accounting and Financial Review)

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish in this journal agree to the following terms:

The copyright of the received article shall be assigned to the journal as the publisher of the journal. The intended copyright includes the right to publish the article in various forms (including reprints). The journal maintains the publishing rights to the published articles. Authors must agree to the copyright transfer agreement by checking the Copyright Notice column at the initial stage when submitting the article.