Factors Affecting Auditor Turnover and Audit Firm Turnover of Listed Companies on the Market for Alternative Investment (MAI)

Abstract

        The objective of this research is to examine the factors influencing auditor and audit firm turnover among companies listed on the Market for Alternative Investment (MAI). Key variables considered in this study include the total debt to total assets ratio, total debt to equity ratio, and audit fees. The study population comprised companies listed on the MAI during the 2021-2022 period, excluding those in service and industrial products sectors, companies in the delisting process, those restoring operations, and companies that had changed their status. Data was collected from secondary sources, with 90 samples used for analysis. Descriptive statistics and multiple regression analysis were applied to analyze the data. The findings revealed that the total debt to equity ratio negatively affects auditor turnover but positively affects audit firm turnover. Additionally, the total debt to total assets ratio significantly impacts auditor turnover in a negative direction. This research provides valuable insights for auditors, audit firms, and investors, offering reasons behind companies' decisions to rotate auditors and audit firms. Auditors and firms can use this information to better select audit engagements, while investors may find it helpful for making informed investment decisions.