Author(s): Arian Alves*
This study investigates the moderation effect of financial discernment on the relationship between audit opinion, management change, audit delay, and voluntary auditor switching in banking companies listed on the Indonesia Stock Exchange (IDX). The banking sector plays a critical role in the economy, making it vital to understand factors influencing auditor changes. We employ a quantitative research methodology, using data from publicly listed banking companies in Indonesia over the past decade. The findings reveal that financial discernment significantly moderates the effects of audit opinion, management change, and audit delay on auditor switching decisions. The results suggest that higher levels of financial discernment enhance the sensitivity of banking firms to audit-related factors, highlighting the importance of sophisticated financial understanding in managerial decision-making. This study contributes to the broader literature on audit quality, corporate governance, and auditor-client relationships, offering valuable insights for regulators, investors, and managers in the banking sector.
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