Empirical Study on the Effect of Financial Distress, Audit Delay, and Audit Opinion on Auditor Switching in Indonesia’s Financial Sector

Abstract

This research aims to analyze and test the influence of Financial Distress, Audit Delay, and Audit Opinion on Auditor Switching. This research method uses a quantitative type of research. The type and source of data in this research is secondary data in the form of financial reports of companies listed on the Indonesia Stock Exchange (IDX) for 2020-2023. The sampling technique used a purposive sampling method to obtain 61 samples of observation data. Data processing in this research used IBM SPSS (Statistical Product and Service Solution) version 25 software. The results of this research explain that financial distress has a positive effect on auditor switching, audit delay has no effect on auditor switching, and audit opinion has a positive effect on auditor switching. This research contributes to the literature by providing empirical insights into the factors influencing auditor switching in the financial sector, which can help improve corporate governance and auditing practices. Financial Distress may lead companies to switch auditors to regain investor trust, Audit Delay could signal inefficiencies affecting auditor retention, and Audit Opinion can shape stakeholders' perceptions, influencing auditor selection decisions.