FAKTOR-FAKTOR YANG MEMPENGARUHI PERUSAHAAN BERPINDAH KANTOR AKUNTAN PUBLIK

This paper was presented on Simposium Nasional Akuntansi (SNA) at Pontianak.

Language: Indonesia

Authors: Shulamite Damayanti and Made Sudarma

Abstract:

The need of auditing service has influenced the development of public accountant profession in Indonesia. The number of public accountant firms increasing may result in competition between public accountant firms.  In such condition, a corporation may change their auditor (auditor changes).

The purpose of thus research is to know whether the change of management, accountant opinion, audit fee, financial distress, public accountant firm’s size, and the percentage of the change of Return on Assets may influence limited corporations in Indonesia to change their auditors. This research is hypothesis testing. Secondary data consists of financial statements and certified public accountant’s statement of limited corporations listed in Bursa Efek Jakarta (BEJ) from 2003 until 2005. The data is analyzed with logistic regression.

 This research results in audit fee and public accountant firm’s size as variables influencing auditor changes and the change of management, accountant opinion, financial distress, and the percentage of the change of Return on Assets as variables not influencing auditor changes. The most significant variable is public accountant firm’s size as the indication of audit quality. Thus, audit quality is an important factor influencing auditor changes. Besides, audit fee is also an important variable influencing auditor changes.

The need of auditing service has influenced the development of public accountant profession in Indonesia. The number of public accountant firms increasing may result in competition between public accountant firms.  In such condition, a corporation may change their auditor (auditor changes).

The purpose of thus research is to know whether the change of management, accountant opinion, audit fee, financial distress, public accountant firm’s size, and the percentage of the change of Return on Assets may influence limited corporations in Indonesia to change their auditors. This research is hypothesis testing. Secondary data consists of financial statements and certified public accountant’s statement of limited corporations listed in Bursa Efek Jakarta (BEJ) from 2003 until 2005. The data is analyzed with logistic regression.

This research results in audit fee and public accountant firm’s size as variables influencing auditor changes and the change of management, accountant opinion, financial distress, and the percentage of the change of Return on Assets as variables not influencing auditor changes. The most significant variable is public accountant firm’s size as the indication of audit quality. Thus, audit quality is an important factor influencing auditor changes. Besides, audit fee is also an important variable influencing auditor changes.

Full paper please download: Damayanti&Sudarma_Faktor-faktor yang Mempengaruhi Perusahaan Berpindah KAP (.pdf 116kb)

Pengaruh Identifikasi Auditor atas Klien Terhadap Objektivitas Auditor dengan Auditor Tenure, Client Importance dan Client Image sebagai Variabel Anteseden

This article was presented on Simposium Nasional Akuntansi XI (SNA XI) at Pontianak.

Authors: E. Yuvisa, A. Rohman, and S. Handayani

Abstracts:

This study examines the influence of PAuditors’ Identification with Their Client on Auditors’ Objectivity with Auditor Tenure, Client Importance and Client Image as Antesedent Variable. Continuing research  by Bamber and Iyer in 2005, as for becoming object from this research is auditors at Accounting Firms which listed  in Bapepam and Jakarta Stock Exchange (BEJ) in Indonesia.

 

This research represents the empirical test which used convinience sampling technics  in data collection. Data were collected using a survey of 104 auditors at Accounting Firms. Data analysis uses Structural Equation Model  (SEM) with the program SmartPLS (Partial Least Square).

 

Results of hypothesis examination indicate that to three factor in Social Identity Theory is auditor tenure (AT), client importance (CI) dan client image (CM) have positively influences on Client identification (CID). The conclusion that auditors do identify with their client and that auditors who identify more with a client are more likely to acquiecence to the client-preferred position. On the other hand, more experienced auditors and auditors who exhibit higher level of professional identification are less likely to acquiesce to the client’s  position.  

Keywords: Auditor Objectivity, Client Identification, Auditor Tenure, Client Importance, Client Image, Professional Identification, Social Identity Theory, Structural Equation Model (SEM), Partial Least Square.

Full download: Pengaruh Identifikasi Auditor atas Klien Terhadap Objektivitas Auditor dengan Auditor Tenure, Client Importance dan Client Image sebagai Variabel Anteseden (.pdf 187kb)

Undergraduate Theses about Activity Based Costing

Here one example of undergraduate theses about activity based costing. This theses was written in Indonesian Language by Fieda Femala.

Title:

Penerapan Metode Activity Based Costing System dalam Menentukan Besarnya Tarif Jasa Rawat Inap

Abstract:

Dalam penentuan harga pokok produk, sistim akuntansi biaya tradisional kurang sesuai lagi untuk diterapkan di era tekhnologi yang modern seperti saat ini. Karena sistem ini mempunyai beberapa kelemahan. Diantaranya adalah memberikan informasi biaya yang terdistorsi. Distorsi timbul karena adanya ketidakakuratan dalam pembebanan biaya, sehingga mengakibatkan kesalahan penentuan biaya, pembuatan keputusan, perencanaan, dan pengendalian (Supriyono, 1999: 259). Distorsi tersebut juga mengakibatkan undercost/overcost terhadap produk (Hansen & Mowen, 2005). Adanya berbagai kelemahan tersebut dapat diatasi dengan penggunaan metode Activity-Based Costing.

Activity-Based Costing adalah metode penentuan harga pokok yang menelusur biaya ke aktivitas, kemudian ke produk. Perbedaan utama penghitungan harga pokok produk antara akuntansi biaya tradisional dengan ABC adalah jumlah cost driver (pemicu biaya) yang digunakan dalam metode ABC lebih banyak dibandingkan dalam sistem akuntansi biaya tradisional.

Hasil penelitian menunjukkan bahwa dari perhitungan tarif rawat inap dengan menggunakan metode ABC, apabila dibandingkan dengan metode tradisional maka metode ABC memberikan hasil yang lebih besar kecuali pada kelas VIP dan Utama I yang memberikan hasil lebih kecil. Hal ini disebabkan karena pembebanan biaya overhead pada masing-masing produk. Pada metode akuntansi biaya tradisional biaya overhead pada masing-masing produk hanya dibebankan pada satu cost driver saja. Akibatnya cenderung terjadi distorsi pada pembebanan biaya overhead. Sedangkan pada metode ABC, biaya overhead pada masing-masing produk dibebankan pada banyak cost driver. Sehingga dalam metode ABC, telah mampu mengalokasikan biaya aktivitas kesetiap kamar secara tepat berdasarkan konsumsi masing-masing aktivitas

To download full copy of this theses please contact me. Write down your name and email on “comment” section, then I’ll send it to you.

Theory about Activity Based Costing that presented in English… follow this LINK

Fama_Efficient Capital Markets: II

This paper is the second review work on Market efficiency (hence II). The first was written in 1970 (please read Fama_Efficient Capital Markets: A Review of Theory and Empirical Work)

Fama starts this paper by “sequels are rarely as good as the originals” .

This paper actually as a review for “new era of EMH”. Which contains a review on efficient markets that explains what it means to have efficient markets, reviews the literature on the efficient markets, discusses the various hypotheses on efficient markets, and anomalies. The paper also redefines the common definitions of efficient markets and investigates the joint-hypothesis problem, the costs of information, and various pricing models.

Any investigation of market efficiency has at least two problems: (1) Information and transaction costs and (2) The joint-hypothesis problem. Continue reading

Fama_Efficient Capital Markets: A Review of Theory and Empirical Work

Fama is most often thought of as the father of efficient market hypothesis, beginning with his Ph.D. thesis. In a ground-breaking article in the May, 1970 issue of the Journal of Finance, entitled “Efficient Capital Markets: A Review of Theory and Empirical Work,” Fama proposed two crucial concepts that have defined the conversation on efficient markets ever since.

First, Fama proposed three types of efficiency: (i) strong-form; (ii) semi-strong form; and (iii) weak efficiency. Second, Fama demonstrated that the notion of market efficiency could not be rejected without an accompanying rejection of the model of market equilibrium (e.g. the price setting mechanism). This concept, known as the “joint hypothesis problem”.

Full text of this masterpiece: Fama_Efficient Capital Markets: A Review of Theory and Empirical Work (.pdf

Corporate Governance in Indonesia – Kurniawan & Indriantoro

This paper, which is divided into five parts, describes the current status of corporate governance in Indonesia. The first part, The State of Corporate Governance in Indonesia, discusses the ownership structure in Indonesia, which is largely dominated by families or a few shareholders. It also discusses the two-board system in the country and the ineffectiveness of such a system in many of the boards. The rest of part I describes the role of audit committees in Indonesia, unfair practices found in business community, lack of transparency and disclosure and lack of risk management practices.

The second part is about efforts being conducted to introduce and implement corporate governance in Indonesia. Such efforts include, developing a national strategy for corporate governance reform, conducting educational events on corporate governance for the public, conducting pilot projects to implement corporate governance principles in the industries, carrying out regulatory reform within the capital market, establishing the Forum of Corporate Governance in Indonesia, and managing technical assistance from the international community.

Part three of the paper deals with Indonesian accounting standards, in particular the history of accounting standards in Indonesia, the standards setting process, the initiatives to harmonize with the international standards, and challenges encountered in implementing the standards.

Part four addresses the auditing standards and the audit profession in Indonesia. It starts with the historical background of the standards and proceeds to the harmonization process, the challenges found in implementing the standards, and the mechanism that exists within the profession to ensure that auditors reach a certain level of competence and fulfill their professional responsibility.

Part five discusses disclosure practices in Indonesia. It elaborates the legal foundation of disclosures in Indonesia, and some disclosure items such as capital structures, ownership of the companies, voting rights, information on the boards, related party transactions, risks, mergers and acquisitions and environment reporting.

Full paper download: Kurniawan&Indriantoro_Corporate Governance in Indonesia  (.pdf 125kb)

Detecting Earnings Management – Dechow, Sloan, & Sweeney

dechowsloansweeney_detectingemThis paper evaluates alternative models for detecting earnings management. The paper restricts itself to models that assume the construct being managed is discretionary accruals, since such models are commonly used in the extant accounting literature. Existing models range from simple models in which discretionary accruals are measured as total accruals, to more sophisticated models that separate total accruals into a discretionary and a non-discretionary component. Prior to this paper, there had been no systematic evidence bearing on the relative performance of these alternative models at detecting earnings management. This paper evaluates the relative performance of the competing models by comparing the specification and power of commonly used test statistics across the measures of discretionary accruals generated by each model. The specification of the test statistics is evaluated by examining the frequency with which they generate type I errors for a random sample of firm-years and for samples of firm-years with extreme financial performance. We focus on samples with extreme financial performance because the stimuli investigated in previous research are frequently correlated with financial performance. The first sample of firms are targeted by the Securities and Exchange Commission for allegedly overstating annual earnings and the second sample is created by artificially introducing earnings management into a random sample of firms.

To download full paper: Detecting Earnings Management (.pdf 3643kb)