THE INFLUENCE OF PUBLIC OWNERSHIP, LEVERAGE AND COMPANY GROWTH ON AUDITOR SWITCHING IN CONSUMER GOODS INDUSTRY SECTOR COMPANIES LISTED ON THE BEI 2019-2022

Abstract

Auditor switching in companies is required to maintain auditor independence and prevent from any emotional relationship between Public Accounting Firm and clients. As such, many Indonesian companies conduct voluntary auditor switching, including those in the consumer goods industry sector. This study aims to analyze the effect of public ownership, leverage, and company growth on the auditor switching of consumer goods companies. The population includes 271 consumer goods companies listed on the Indonesia Stock Exchange for the 2019-2022 period, from which the samples of 44 companies were selected through purposive sampling. Secondary data derived from the companies' annual reports published on the official website of the Indonesia Stock Exchange are collected through literature and documentation, and are analyzed quantitatively utilizing descriptive statistical analysis and binary logistic regression. The results of the study suggest that public ownership and leverage do not affect auditor switching, but company growth affects auditor switching. This study recommends that companies make careful considerations before deciding to switch auditors to achieve quality and reliable audit results.