Do Board and Audit Committee Characteristics Improve External Auditor Choice?
Siti Noor Khikmah (a), Mudji Mranani (b), Indira Januarti (c)

(a,b) Faculty of Economics, Universitas Muhammadiyah Magelang, Indonesia-
(c) Departement of Accounting, Faculty of Economics and Business Diponegoro University, Semarang, Indonesia

Abstract

This study aimed to determine the effect of board and audit committee characteristics on external auditor choice by companies. The sample comprised 112 manufacturing companies on the Indonesia Stock Exchange (IDX) from 2016 - 2019. The data were tested using a logistic regression analysis approach. The results showed that the board of commissioners^ size and expertise, also the audit committee independence and expertise, also profitability are affect external auditor choice. The board of commissioners^ independence, the frequency of meetings, as well as size and number of audit committee meetings, and company size do not affect the external auditor choice. Therefore, future studies could examine auditor choice by increasing the time, using other indicators such as the function of the board of commissioners and the audit committee, and adding risk management variables.

Keywords: External auditor choice, board of commissioners, audit committee, company size, profitability.

Topic: Economics