DETERMINANTS OF AUDIT QUALITY: A STUDY OF THE INFRASTRUCTURE SECTOR FOR THE PERIOD 2021-2023

Abstract

This study aims to analyze the effect of audit fees, auditor specialization, audit tenure, and company size on audit quality. The Audit Fee variables are proxied by the Natural Logarithm of professional fees, the Auditor Specialization proxied by auditor control over market share with a limit of 15%, the Audit Tenure proxied by how long an AP carries out duties with its clients, the Company Size proxied by the Natural Logarithm of the company's total assets, and the Audit Quality proxied by Going Concern Opinions (score 1) and Non-Going Concern Opinions (Score 0).  This study uses a quantitative method using secondary data in the form of financial reports from the official website of the Indonesia Stock Exchange. The population used in this study are companies listed on the Indonesia Stock Exchange in the infrastructure sector for the period 2021 - 2023. The sample used in this study was obtained using purposive sampling technique which resulted in 84 data free from outlier data. The analysis method used in this research is logistic regression analysis with SPSS 26 software. The results of this study indicate that audit fees and company size have a significant positive effect on audit quality. Auditor specialization and audit tenure have no effect on audit quality.