The differences of audit quality on the regulation of audit tenure and auditor rotation in Indonesia


  • Ni Made Puspa Pawitri Faculty of Economics and Business, University of Udayana, Denpasar, Indonesia
  • Anak Agung Gde Putu Widanaputra Faculty of Economics and Business, University of Udayana, Denpasar, Indonesia
  • Ketut Muliartha RM Faculty of Economics and Business, University of Udayana, Denpasar, Indonesia
  • I Nyoman Wijana Asmara Putra Faculty of Economics and Business, University of Udayana, Denpasar, Indonesia


audit quality, audit tenure, auditor rotation, consecutive financial, regulations


This study examines the differences in audit quality on the regulation of audit tenure and auditor rotation in Indonesia. In Indonesia, there have been several audit-related scandals that occurred after the implementation of regulations on the audit tenure limitation and auditor rotation. The last regulation that applies to date is the Peraturan Pemerintah Republik Indonesia No. 20/2015 about Public Accountant Practices Chapter V regarding the Limitation of Audit Services in Article 11 that the provision of audit services on a historical financial statement on an entity by a Public Accountant is limited to a maximum of five consecutive financial years. These analyses use discretionary accruals as audit-quality proxies. In this study, the output of audit quality is measured, namely the earnings quality. This research was conducted on all non-financial companies listed on the Indonesia Stock Exchange start from 2012 to 2017, using the purposive sampling method obtained 554 research samples. Hypothesis analyses in this study use different test analysis. Specifically, there is a significant difference in the audit quality in the first year of the tenure and the last year of the tenure. We also find significant differences in audit quality before and after auditor rotation.


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How to Cite

Pawitri, N. M. P., Widanaputra, A. A. G. P., Muliartha RM, K., & Putra, I. N. W. A. (2020). The differences of audit quality on the regulation of audit tenure and auditor rotation in Indonesia. International Journal of Social Sciences and Humanities, 4(3), 88–98.



Research Articles