THE IMPACT OF FINANCIAL DISTRESS AND MANAGEMENT CHANGE ON AUDITOR SWITCHING IN INDONESIA (A STUDY OF MANUFACTURING LISTED ON THE INDONESIA STOCK EXCHANGE IN 2021-2023)

Noflin Sarrin¹, Yoosita Aulia², Didik Tugas Suprianto³

Abstract

(Purpose) This study used a quantitative approach to examine how financial distress and management changes affected auditor switching in Indonesia. Logistic regression testing and descriptive statistical testing are the data analysis techniques used in this study. Manufacturing firms that were listed on the Indonesia Stock Exchange (IDX) between 2021 and 2023 made up the study’s population. Purposive sampling was the sampling technique employed. (Results) According to the logistic regression analysis test, management changes in manufacturing companies listed on the Indonesia Stock Exchange between 2021 and 2023 statistically have no impact on auditor switching. 2. Financial distress has a statistically significant impact on auditor switching in manufacturing companies listed on the Indonesia Stock Exchange between 2021 and 2023, according to the results of the logistic regression analysis test. (Implications) Financial distress, not a change in management, is the cause of auditors’ departure. Businesses that are having financial difficulties frequently move to auditors who charge less