FACTORS - FACTORS AFFECTING THE SWITCHING ON BANKING COMPANY AUDITOR IN INDONESIA

The purpose of the audit of financial statements so that the users feel more confident with the quality of corporate financial statements. Companies can hire auditors to assure reliable outside investors in the financial statements and disclosures to reduce the agency problem. Auditor switching is a change of KAP is made by a client company. This research aims to determine the factors that influence auditor switching is done by the company, using six variables: auditor size, client size, management change, financial distress, audit opinions and audit fee. In this research used the banking company's financial statements in Indonesia Stock Exchange period 2007 - 2011. The selection of the sample using purposive sampling method, by selecting a sample on the basis of the suitability of data held by the sample with the sample selection criteria that have been determined, so achieve of total samples obtained as many as 105 companies. Hypothesis testing in this research using logistic regression analysis. This research indicates that only client size as a significant determinant of auditor switching in companies related to banking in Indonesia Stock Exchange. But auditor size, management change, financial distress, audit opinion and audit fee do not affect the auditor switching. While the result obtained by the simultaneous significance of 4,9 %, which indicates that all the variables simultaneously effect the auditor switching.

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