The Influence of Audit Opinion and Public Accounting Firm Reputation On Auditor Switching With Financial Distress as a Moderating Variable

This study aims to analyze the effect of audit opinion and KAP reputation on auditor switching with financial distress as a moderating variable (empirical study of financial sector companies listed on the Indonesia Stock Exchange for the period 2019-2023). This research is included in quantitative research. The data used in this study are sourced from secondary data in the form of annual financial reports and audited financial reports from financial sector companies listed on the Indonesia Stock Exchange for the period 2019-2023. The purposive sampling method was used to obtain the right sample in this study. A total of 48 companies that were known to meet the criteria were used as samples. And 240 company data were obtained for observation. The dependent variable in this study is Auditor Switching (Y) with Audit Opinion (X1) and KAP Reputation (X2) as independent variables with the addition of a moderating variable, namely Financial Distress
(M). Testing was carried out on the data then analyzed using logistic regression analysis and moderated regression analysis (Moderated Regression Analysis/MRA) using the SPSS 25 application. The results showed that the audit opinion variable had a significant negative effect on auditor switching. While the KAP reputation variable does not have a significant effect on auditor switching. Financial distress as a moderating variable is known to be able to moderate and strengthen the influence of the audit opinion variable on auditor switching but is able to moderate and strengthen the influence of the KAP reputation variable on auditor switching. Financial Distress moderates the influence of Audit Opinion, KAP Reputation on Auditor Switching. This is because with the presence of new management or CEO, policies in the company will also change, such as accounting policies and the selection of KAP/Auditors that are in line with the policies of the new management.