THE INFLUENCE OF GOING CONCERN AUDIT OPINION, AUDIT FEE, AND INCOME MANIPULATION ON AUDITOR SWITCHING WITH FINANCIAL DISTRESS AS A MODERATING VARIABLE

Abstract

This study investigates the influence of going concern audit opinion, audit fees, and income manipulation on auditor switching, with financial distress as a moderating variable, in energy sector companies listed on the main and development boards of the Indonesia Stock Exchange. A total of 46 companies were selected using purposive sampling, resulting in 184 firm-year observations over a four-year period. Data were collected through documentation techniques and analyzed using logistic regression in SPSS version 30. The findings reveal that going concern audit opinions and income manipulation do not significantly affect auditor switching. However, audit fees have a significant positive effect on auditor switching. Furthermore, financial distress moderates the relationship between audit fees and auditor switching, amplifying the likelihood of companies changing auditors when experiencing financial distress. These results highlight the role of financial pressure in audit decision-making processes and indicate that cost considerations become more prominent when companies are under financial strain. The study suggests that regulators and stakeholders should pay closer attention to audit fee arrangements, especially in financially distressed firms, as they may impact auditor independence and the quality of financial reporting.