RISK MANAGEMENT FACTORS ON CLIENT ACCEPTANCE DECISIONS IN A BIG4 KAP

Mia Selvina

doi:10.20473/baki.v2i1.3631

Authors

Mia Selvina
miaselvina@gmail.com
Departemen Akuntansi Fakultas Ekonomi dan Bisnis Universitas Indonesia

Vol. 2 No. 1 (2017): Berkala Akuntansi dan Keuangan Indonesia

Articles

March 31, 2017

Downloads

42-62

Abstract
How to Cite
Metrics
References
License

This study aims to provide empirical evidence regarding the evaluation of risk management in a non-big 4 public accounting firm on client acceptance decisions. Risk management is divided into 3 broad categories, namely client business risk, audit business risk, and KAP business risk. The sample used in this study are clients who apply for audit services at a public accounting firm that are not included in Big 4 KAPs. audits, and audit fees.

Abdullatif, M. 2013. Fraud risk factors and audit programme modifications: Evidence from Jordan. Australasian Accounting Business & Finance Journal,7(1), 59.

Agoes, Soekrisno. 2004. Auditing:(Pemeriksaan Akuntan) oleh Kantor Akuntan Publik Jilid I. Jakarta: Fakultas Ekonomi Universitas Indonesia.

Arens, Alvin A; Elder, Randal J; Beasley, Mark S. 2004 Auditing and Assurance Services: An Integrated Approach Edisi 11. Pearson-Prentice Hall.

Asare, S., Cohen, J., & Trompeter, G. 2005. The effect of non-audit services on client risk, acceptance and staffing decisions. Journal of Accounting and Public Policy, 24(6): 489-520.

Ayers, S., & Kaplan, S. E. 1998. Potential differences between engagement and risk review partners and their effect on client acceptance judgments.Accounting Horizons, 12(2), 139.

Baker, C. R., & Owsen, D. M. 2002. Increasing the role of auditing in corporate governance. Critical Perspectives on Accounting, 13(5): 783-795.

Bell, T. B., Landsman, W. R., & Shackelford, D. A. 2001. Auditors' perceived business risk and audit fees: Analysis and evidence. Journal of Accounting research, 39(1), 35-43.

Boone, J. P., Khurana, I. K., & Raman, K. K. 2010. Do the Big 4 and the Second-tier firms provide audits of similar quality?. Journal of Accounting and Public Policy, 29(4), 330-352.

Cao, Zhiyan, and Ganapathi S. Narayanamoorthy. 2014.Accounting and litigation risk: evidence from Directors' and Officers' insurance pricing. Review of Accounting Studies 19.1: 1-42.

Chen, Yahn Shir; Hsu, Joseph C.S. 2009. Auditor Size, Auditor Quality, and Auditor Fee Premiums: Further Evidence from the Public Accounting Profession. National Yunlin University of Science and Technology.

Cohen, J., Krishnamoorthy, G., & Wright, A. M. (2002). Corporate governance and the audit process*. Contemporary accounting research, 19(4), 573-594.

Colbert, J. L., Luehlfing, M. S., & Alderman, C. W. 1996. Engagement risk.The CPA Journal, 66(3), 54.

Damayanti, Shulamite., Sudarma, Made. 2008. Perusahaan Berpindah Kantor Akuntan Publik. Simposium Nasional Akuntansi XI, Pontianak.

depnakertrans. 2015. Website resmi departemen ketenagakerjaan dan transmigrasi

http://ppid.depnakertrans.go.id/hadapi-mea-2015-pemerintah-fokus-siapkan-8-profesi-prioritas/

DeAngelo, L. E. 1981. Auditor size and audit quality. Journal of Accounting and Economics, 3(3): 183-199.

DeAngelo, L. E. 1981. Auditor independence,‘low balling', and disclosure regulation. Journal of accounting and Economics, 3(2), 113-127.

DeFond, M. L., Raghunandan, K., & Subramanyam, K. R. (2002). Do non–audit service fees impair auditor independence? Evidence from going concern audit opinions. Journal of accounting research, 40(4), 1247-1274.

Eilifsen, A., Knechel, W. R., & Wallage, P. 2001. Application of the business risk audit model: A field study. Accounting Horizons, 15(3), 193-207.

Eisenhardt, K. M. 1989. Agency theory: An assessment and review. Academy of management review, 14(1): 57-74.

Ethridge, J. R., Marsh, T. L., & Canfield, K. 2007. Engagement risk: A preliminary analysis of audit firms' client acceptance decisions. Academy of Accounting and Financial Studies Journal, 11(1): 1.

Firth, M., Rui, O. M., & Wu, X. 2012. How do various forms of auditor rotation affect audit quality? Evidence from China. The International Journal of Accounting, 47(1): 109-138.

Francis, J. R., & Yu, M. D. 2009. Big 4 office size and audit quality. The Accounting Review, 84(5), 1521-1552.

Geiger, M. A., & Rama, D. V. 2006. Audit firm size and going-concern reporting accuracy. Accounting Horizons, 20(1), 1-17.

Gendron, Y. 2002. On the role of the organization in auditors' client-acceptance decisions. Accounting, Organizations and Society, 27(7), 659-684.

Hogan, C. E., & Wilkins, M. S. 2008. Evidence on the Audit Risk Model: Do Auditors Increase Audit Fees in the Presence of Internal Control Deficiencies?*. Contemporary Accounting Research, 25(1), 219-242.

Houston, R. W. 1999. The effects of fee pressure and client risk on audit seniors' time budget decisions. Auditing: A Journal of Practice & Theory, 18(2): 70-86.

Houston, R. W., Peters, M. F., & Pratt, J. H. 1999. The audit risk model, business risk and audit-planning decisions. The Accounting Review, 74(3): 281-298.

Huss, H. F., Jacobs, F. A., & Patterson, D. M. 1993. Managing risk in public accounting firms. Risk Management, 40(9), 51.

Huss, H. F., Jacobs, F. A., Patterson, D. M., & Park, M. 2000. An integrative model of risk management in auditing. American Business Review, 18(2): 113.

http://www.hukumonline.com/berita/baca/lt528c94b13990e/bakn-nilai-tata-kelola-bumn-buruk.

iaiglobal. 2014. Kode Etik Akuntan. Website Resmi Ikatan Akuntan Indonesia http://www.iaiglobal.or.id/v02/berita/detail.php?catid=id=373.

Institut Akuntan Publik Indonesia. 2008. Panduan Audit Entitas Bisnis Kecil. Jakarta: Salemba Empat.

Jo, Susanto; Pandia, Satya. KPPU Mendenda Kantor Akuntan Publik Hadi Susanto-PwC. Liputan6 25 Jun 2004

http://www.liputan6.com/read/80920/kppu-mendenda-kantor-akuntan-publik-hadi-susanto-pwc.

Johnstone, K. M. 2000. Client-acceptance decisions: Simultaneous effects of client business risk, audit risk, auditor business risk, and risk adaptation. Auditing: A Journal of Practice & Theory, 19(1): 1-25.

Johnstone, K. M., & Bedard, J. C. 2003. Risk management in client acceptance decisions. The Accounting Review, 78(4): 1003-1025.

Kizirian, T. G., Mayhew, B. W., & Sneathen Jr, L. D. 2005. The impact of management integrity on audit planning and evidence. Auditing: A Journal of Practice & Theory, 24(2), 49-67.

Kompas.com. 2010. Akuntan Publik Diduga Terlibat Selasa, 18 Mei 2010

http://regional.kompas.com/read/2010/05/18/21371744/Akuntan.Publik.Diduga.Terlibat.

Krishnan, J., & Krishnan, J. 1997. Litigation risk and auditor resignations.Accounting Review, 539-560.

Laux, V., & Paul Newman, D. 2010. Auditor liability and client acceptance decisions. The Accounting Review, 85(1), 261-285.

Li, C. 2009. Does Client Importance Affect Auditor Independence at the Office Level? Empirical Evidence from Going"Concern Opinions*. Contemporary Accounting Research, 26(1), 201-230.

Lyon, J. D., & Maher, M. W. 2005. The importance of business risk in setting audit fees: Evidence from cases of client misconduct. Journal of Accounting Research, 43(1), 133-151.

Mahantara, A. A. 2013. Faktor-Faktor yang Memengaruhi Pergantian Kantor AKuntan Publik pada Perusahaan yang Terdaftar di Bursa Efek Indonesia. E-Jurnal Ekonomi dan Bisnis Universitas Udayana, 2(10).

Mulia, T. W., & Indra, W. 2005. Pengujian Hambatan yang Dirasakan Terasuh dalam Hubungan Pementoran pada Kantor Akuntan Publik. Naskah dipresentasikan dalam Simposium Nasional Akuntansi VIII, Solo.

Mustofa. 2014. Manajemen Modern Bisnis Kantor Akuntan. Jakarta: Buku Kompas.

Nindita, C., & Siregar, S. V. (2012). Analisis pengaruh ukuran kantor akuntan publik terhadap kualitas audit di Indonesia. Jurnal Akuntansi dan Keuangan,14(2), 91-104.

pppk.2015. Website resmi Pusat Pembinaan Profesi Keuangan. Pendapatan The Big Four Masih TInggi. http://pppk.kemenkeu.go.id/News/Details/18.

Pratitis, Y. T. 2012. AUDITOR SWITCHING: ANALISIS BERDASAR UKURAN KAP, UKURAN KLIEN DAN FINANCIAL DISTRESS. Accounting Analysis Journal, 1(1).

Pratt, J., & Stice, J. D. 1994. The effects of client characteristics on auditor litigation risk judgments, required audit evidence, and recommended audit fees. Accounting Review: 639-656.

Romney, Marshall. B., & Steinbart, Paul. J. 2012. Accounting Information Systems Twelfth Edition. England: Pearson Education Limited.

Ross, S. A. 1973. The economic theory of agency: The principal's problem. The American Economic Review: 134-139.

Selling, T. I., & Stickney, C. P. 1989. The effects of business environment and strategy on a firm's rate of return on assets. Financial Analysts Journal,45(1), 43-52.

Stanley, J. D. 2011. Is the audit fee disclosure a leading indicator of clients' business risk? Auditing: A Journal of Practice & Theory, 30(3): 157-179.

Sumantyo, Riwi. 2003. Kasus Bank Lippo dan Degradasi Kepercayaan Publik. Suara Merdeka. http://www.suaramerdeka.com/harian/0302/24/eko1.html

Supriyanto, Agus. 2007. Izin Kantor Akuntan Publik Mitra Winata Dibekukan. Website resmi Tempo.Co Selasa, 27 Maret 2007.

https://m.tempo.co/read/news/2007/03/27/05696474/izin-kantor-akuntan-publik-mitra-winata-dibekukan.

Venkataraman, R., Weber, J. P., & Willenborg, M. (2008). Litigation risk, audit quality, and audit fees: Evidence from initial public offerings. The Accounting Review, 83(5), 1315-1345.

Weningtyas, Suryanita., Setiawan, Doddy., Triatmoko, Hanung. 2006. Penghentian Prematur atas Prosedur Audit. Simposium Nasional Akuntansi XI, Padang.

Wibowo, A., & Rossieta, H. 2009. Faktor-faktor determinasi kualitas audit–suatu studi dengan pendekatan earnings surprise benchmark. Simposium nasional Akuntansi XII, 1-34.

Wijaya, R. M. 2013. Faktor-faktor yang mempengaruhi pergantian auditor oleh klien. Jurnal Ilmiah Mahasiswa FEB, 1(1).

Wondabio, L. S. 2006. Evaluasi Manajemen Risiko Kantor Akuntan Publik (KAP) dalam Keputusan Penerimaan Klien (Client Acceptance Decisions) Berdasarkan Pertimbangan dari Risiko Klien (Client Risk), Risiko Audit (Audit Risk), dan Risiko Bisnis KAP (Auditorí¢€â„¢s Business Risk). Jurnal Akuntansi Keuangan Indonesia.

------, 1983. Statement on Auditing Standards 47 Issued by Auditing Standards Board AICPA December 1983.

___, 1989. AU Section 341 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern.

-------, 2001. Surat Perikatan Audit Pernyataan Standar Auditing SA Seksi 320. Ikatan Akuntan Indonesia.

------, 2002. Keputusan Menteri Keuangan Republik Indonesia NOMOR : 423 /KMK.06/2002 Tanggal 30 September 2002 Tentang Jasa Akuntan Publik.

------, 2005. P4 Assess Engagement Risk and Control Environment. PT BAN Indonesia.

------, 2006. General Audit Engagement Acceptance Memo. Moore Stephens.

------, 2011. Kumpulan Peraturan tentang Akuntan Publik dan Akuntan. Kementerian Keuangan Republik Indonesia Sekretariat Jenderal Pusat Pembinaan Akuntan dan Jasa Penilai.

------, 2012. AU Section 316 Consideration of Fraud in a Financial Statement Audit (Supersedes SAS No. 82).

------, 2015. Directory Kantor Akuntan Publik dan Akuntan Publik 2015. Institut Akuntan Publik Indonesia.