Abstract
The study aims to emphasize the importance of knowledge of audit quality on Public Accountant Firm (PAF) selection for a company by employing a 2x1 factorial design between-subject. To achieve this goal, we identified differences between the experimental and control groups. The experimental group was given knowledge of audit quality, whereas the control group had no treatment during the process selection of PAF. There were 10 indicators used in term of audit quality, namely audit workload, business expertise, audit turnover, audit hours, result of employee satisfaction surveys, partner compensation, result of client satisfaction surveys, PCAOB inspection results, restatements on audit reports, and litigation of PAF. Further, these indicators were classified into input and output in the audit process. The result revealed a significant difference between the experimental and control group. It is concluded that experimental group which was equipped with knowledge of audit quality can reduce bias in PAF selection decisions.
Recommended Citation
Hamzah, Ruth Samantha; Donata Gozali, Efva Octavina; and Patmawati, --
(2022)
"An Experimental Study: Audit Quality Importance on Selecting a Public Accountant Firm (PAF),"
DLSU Business & Economics Review: Vol. 31:
No.
2, Article 5.
DOI: https://doi.org/10.59588/2243-786X.1188
Available at:
https://animorepository.dlsu.edu.ph/ber/vol31/iss2/5
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