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Category: ICAS 2014 Proceedings
Author: Sukrisno Agoes, Listya Yuniastuti Rahmina
Year: 2014
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Abstract

The purpose of this research is to determine the effect of auditor independence, audit tenure, and audit fee both partially and simultaneously on the audit quality. This research uses primary data collected through the distribution of questionnaires in audit firm listed in Capital Market Accountant Forum – FAPM in Indonesia. The population of research are senior auditor, supervisors, managers, and partners positions and worked on the audit firm member of FAPM. The results of this research show that in general auditor independence, audit tenure, and audit fee have a positive influence on audit quality. The test Coefficient of Determination result of 21.4% indicates that the audit quality can be explained by variations in auditor independence, audit tenure, and audit fee, while the remaining 78,6% is explained by other variables that are not used in this research, such as auditor's size, auditor's industry specialization, and audit risk. To improve the audit quality, Indonesian Institute of Public Accountants (IAPI) should set up an Independent Audit Review Boards and the recent mandatory rotation of audit partners and public accountant firm should follow the IFAC Code of Ethics for Professional Accountants revised in July 2009, which requires audit partner rotation every seven years for public interest entities.

Keywords: Auditor independence; audit tenure; audit fee; audit quality

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