The Impact of Audit Reputation on Stakeholder Trust: A Qualitative Analysis of Key Influencing Factors
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Abstract
Audit reputation is a vital component of the financial reporting ecosystem, significantly influencing stakeholder trust and confidence in audited financial statements. This qualitative study explores the multifaceted nature of audit reputation, examining how it is shaped by factors such as audit quality, ethical behavior, auditor independence, crisis management, and firm size. Through a case study approach involving in-depth interviews with key stakeholders and document analysis, the research provides insights into how audit reputation is perceived and managed within the industry. The findings highlight the critical importance of maintaining a strong audit reputation for the success and sustainability of audit firms. The study concludes with practical recommendations for audit firms to enhance their reputation, ensuring continued stakeholder trust and confidence.
References
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Renaldo, N., Andi, Nur, N. M., Junaedi, A. T., & Panjaitan, H. P. (2021). Determinants of Firm Value for Wholesale Sub-sector Companies in 2016-2019 with Behavioral Accounting Approach. Journal of Applied Business and Technology, 2(1), 1–12. https://doi.org/https://doi.org/10.35145/jabt.v2i1.55
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Renaldo, N., Sudarno, & Hutahuruk, M. B. (2020). The Improvement of Generation Z Financial Well-being in Pekanbaru. Jurnal Manajemen Dan Kewirausahaan, 22(2), 142–151. https://doi.org/10.9744/jmk.22.2.142-151
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Shaharuddin, S. S., Lau, W. Y., & Ahmad, R. (2017). Constructing Fama–French Factors from Style Indices: Evidence from the Islamic Equity Market. Emerging Markets Finance and Trade, 1–10. https://doi.org/10.1080/1540496X.2016.1278529
Steller, M., & Pummerer, E. (2021). Auditor’s Income Taxation and Audit Quality. SAGE Open, 11(3), 1–13. https://doi.org/10.1177/21582440211040833
Sudarno, Hutahuruk, M. B., Prayetno, M. P., Renaldo, N., Taylor, J. A., & Harrison, E. (2024). Educational Tactics through Social Marketing: Enhancing Awareness and Community Participation in Building a Quality Education Environment. Reflection: Education and Pedagogical Insights, 1(4), 203–215. https://doi.org/https://doi.org/10.61230/reflection.v1i4.64
Suhardjo, Renaldo, N., Sevendy, T., Rusgowanto, F. H., & Pramesti, I. G. A. A. (2023). Chi-Square and 2-Way ANOVA for Accounting Students: Analysis of Natural Gas Sales Volume by Pipeline by Customer Type in Indonesia. Reflection: Education and Pedagogical Insights, 1(1), 34–39. https://firstcierapublisher.com/index.php/reflection/article/view/7
Sulimany, H. G. H. (2024). Does Institutional Ownership Moderate the Relationship Between Audit Committee Composition and Audit Report Lag: Evidence From Saudi. SAGE Open, 14(2), 1–14. https://doi.org/10.1177/21582440241241171
Waluyo. (2017). The Effect of Good Corporate Governance on Tax Avoidance: Empirical Study of the Indonesian Banking Company. The Accounting Journal of BINANIAGA, 02(02), 1–10.
Wati, Y., Irman, M., Suharti, Suyono, & Renaldo, N. (2023). CSR, Good Corporate Governance, Corporate Value: Moderation of Financial Performance. Jurnal Akuntansi Keuangan Dan Bisnis, 16(2), 353–362. https://doi.org/10.35143/jakb.v16i2.6064
Ahn, J., Hoitash, R., & Hoitash, U. (2020). Auditor task-specific expertise: The case of fair value accounting. Accounting Review, 95(3), 1–32. https://doi.org/10.2308/ACCR-52599
Almas, A. F. (2018). Sumbangan Paradigma Thomas S. Kuhn dalam Ilmu dan Pendidikan (Penerapan Metode Problem Based Learning dan Discovery Learning). At-Tarbawi: Jurnal Kajian Kependidikan Islam, 3(1), 89–106. https://doi.org/10.22515/attarbawi.v3i1.1147
Anton, Fernando, E., Estu, A. Z., Eddy, P., & Andi. (2023). Financial Report Fraud Determinants (Banking and Insurance Sub-Sector Companies on the Indonesia Stock Exchange 2017-2021). Nexus Synergy: A Business Perspective, 1(1), 32–50. https://firstcierapublisher.com/index.php/nexus/article/view/12
Fadrul, Yang, A., Rahman, S., Renaldo, N., & Suharti. (2024). Pengaruh Good Corporate Governance dan Karakteristik Perusahaan terhadap Manajemen Laba. EKOMA: Jurnal Ekonomi, Manajemen, Akuntansi, 3(2), 907–919. https://doi.org/10.34208/ejatsm.v2i4.1842
Hutabarat, L. E. (2024). Analysis of the Internal Control System for Receivables at CV. Putra Riau Mandiri. Luxury: Landscape of Business Administration, 2(1), 1–25. https://doi.org/https://doi.org/10.61230/luxury.v2i1.65
Hutchinson, M., & Bennett, G. (2012). Core values brand building in sport: Stakeholder attitudes towards intercollegiate athletics and university brand congruency. Sport Management Review, 15(4), 434–447. https://doi.org/10.1016/j.smr.2012.02.001
Irman, M., Suhendra, E. A., & Diana, H. (2021). Work Experience, Professionalism, Independence and the Application of Information Technology on Auditor Performance in Order to Increasing Audit Quality at the Financial Audit Agency of the Republic Indonesia Representative of the Riau Province. Journal of Applied Business and Technology, 2(3), 206–222. https://doi.org/https://doi.org/10.35145/jabt.v2i3.78
Irman, M., & Suryati. (2017). Pengaruh Kelemahan Sistem Pengendalian Internal, Ketidakpatuhan pada Perundang-undangan, Opini Tahun Sebelumnya dan Umur Pemerintah Daerah terhadap Opini Audit di Kabupaten/Kota Provinsi Riau Tahun 2011-2014. Kurs: Jurnal Akuntansi, Kewirausahaan Dan Bisnis, 2(2), 197–209. http://www.ejournal.pelitaindonesia.ac.id/ojs32/index.php/KURS/article/view/203
Junaedi, A. T., Sudarno, Renaldo, N., Tanjung, A. R., Komardi, D., Nyoto, Suhardjo, Rahman, S., Andi, & Sevendy, T. (2023). Ekonomi Kreatif sebagai Penggerak dalam Pertumbuhan Ekonomi Masyarakat di Era Digitalisasi (Guru Ekonomi Provinsi Riau). JUDIKAT: Jurnal Pengabdian Kepada Masyarakat, 3(2), 89–97. https://doi.org/https://doi.org/10.35145/judikat.v3i2.3952
Kim, J., & Morris, J. D. (2003). The Effect of Advertising on the Market Value of Firms: Empirical Evidence from the Super Bowl ads. Journal of Targeting, Measurement and Analysis for Marketing, 12(1), 53–65. https://doi.org/10.1057/palgrave.jt.5740098
Kurniasih, L., Sulardi, & Suranta, S. (2017). Earnings Management, Corporate Governance and Tax Avoidance: The Case in Indonesia. Journal of Finance and Banking Review, 2(4), 28–35. www.gatrenterprise.com/GATRJournals/index.html
Lebert, S., Mohrmann, U., & Stefani, U. (2020). Rounding up performance measures in German firms: Earnings cosmetics or earnings management on a larger scale? Journal of Business Finance and Accounting, December 2018, 1–23. https://doi.org/10.1111/jbfa.12494
Merter, A. K., & Özer, G. (2024). Audit Committee and Timely Reporting: Evidence From Turkey. SAGE Open, 14(1), 1–21. https://doi.org/10.1177/21582440241239516
Nyoto, Renaldo, N., Karuppannan, G., Bhuiyan, A. B., & Kumarasamy, M. M. (2021). The Determinance of the Financial Behavior among Graduate Students in Indonesia. Australian Finance & Banking Review, 5(1), 29–42. https://doi.org/https://doi.org/10.46281/afbr.v5i1.1009
Oyewo, B. (2021). Diffusion of fair value measurement (IFRS 13): Perception of auditors. Contaduria y Administracion, 66(2), 1–33. https://doi.org/10.22201/fca.24488410e.2021.2178
Panjaitan, H. P., Renaldo, N., & Suyono. (2022). The Influence of Financial Knowledge on Financial Behavior and Financial Satisfaction on Pelita Indonesia Students. Jurnal Manajemen Indonesia, 22(2), 145–153. https://doi.org/10.25124/jmi.v22i1.4289
Putri, T. M., & Cahyonowati, N. (2014). Pengaruh Tenure Audit, Rotasi Audit, Audit Fee Terhadap Kualitas Audit dengan Komite Audit Sebagai Variabel Moderasi (Studi pada Perusahaan Sektor Keuangan yang Terdaftar di BEI Tahun 2010-2014). Diponegoro Journal of Accounting, 3(2), 1–11.
Putriyanti, N., & Chayati, A. D. (2020). Effect of Pressure, Opportunity, Rationalizations, Capability and Arrogance in The Concept of The Fraud Pentagon. JOURNAL OF AUDITING, FINANCE, AND FORENSIC ACCOUNTING, 8(2), 85–95. https://doi.org/https://doi.org/10.21107/jaffa.v8i2.8773
Renaldo, N., Andi, Nur, N. M., Junaedi, A. T., & Panjaitan, H. P. (2021). Determinants of Firm Value for Wholesale Sub-sector Companies in 2016-2019 with Behavioral Accounting Approach. Journal of Applied Business and Technology, 2(1), 1–12. https://doi.org/https://doi.org/10.35145/jabt.v2i1.55
Renaldo, N., Rozalia, D. K., Musa, S., Wahid, N., & Cecilia. (2023). Current Ratio, Firm Size, and Return on Equity on Price Earnings Ratio with Dividend Payout Ratio as a Moderation and Firm Characteristic as Control Variable on the MNC 36 Index Period 2017-2021. Journal of Applied Business and Technology, 4(3), 214–226. https://doi.org/10.35145/jabt.v4i3.136
Renaldo, N., Sudarno, Andi, Veronica, K., & Hutahuruk, M. B. (2023). Sales Volatility, Operating Cash Flow Volatility, Debt, and Firm Size on Future Earnings Persistence. The Accounting Journal of Binaniaga, 8(01), 27–38. https://doi.org/10.33062/ajb.v8i01.19
Renaldo, N., Sudarno, & Hutahuruk, M. B. (2020). The Improvement of Generation Z Financial Well-being in Pekanbaru. Jurnal Manajemen Dan Kewirausahaan, 22(2), 142–151. https://doi.org/10.9744/jmk.22.2.142-151
Saitri, P. W., Mendra, N. P. Y., Pramesti, I. G. A. A., & Renaldo, N. (2023). How Firm Characteristics Affect the Dividend Policy of Listed Banking Companies on The Indonesian Stock Exchange in 2019-2021. Interconnection: An Economic Perspective Horizon, 1(1), 37–50. https://firstcierapublisher.com/index.php/reflection/article/view/28
Sekaran, U., & Bougie, R. (2016). Research Method for Business A Skill-Building Approach Seventh Edition (Seventh Ed). John Wiley & Sons. https://doi.org/10.1007/978-94-007-0753-5_102084
Shaharuddin, S. S., Lau, W. Y., & Ahmad, R. (2017). Constructing Fama–French Factors from Style Indices: Evidence from the Islamic Equity Market. Emerging Markets Finance and Trade, 1–10. https://doi.org/10.1080/1540496X.2016.1278529
Steller, M., & Pummerer, E. (2021). Auditor’s Income Taxation and Audit Quality. SAGE Open, 11(3), 1–13. https://doi.org/10.1177/21582440211040833
Sudarno, Hutahuruk, M. B., Prayetno, M. P., Renaldo, N., Taylor, J. A., & Harrison, E. (2024). Educational Tactics through Social Marketing: Enhancing Awareness and Community Participation in Building a Quality Education Environment. Reflection: Education and Pedagogical Insights, 1(4), 203–215. https://doi.org/https://doi.org/10.61230/reflection.v1i4.64
Suhardjo, Renaldo, N., Sevendy, T., Rusgowanto, F. H., & Pramesti, I. G. A. A. (2023). Chi-Square and 2-Way ANOVA for Accounting Students: Analysis of Natural Gas Sales Volume by Pipeline by Customer Type in Indonesia. Reflection: Education and Pedagogical Insights, 1(1), 34–39. https://firstcierapublisher.com/index.php/reflection/article/view/7
Sulimany, H. G. H. (2024). Does Institutional Ownership Moderate the Relationship Between Audit Committee Composition and Audit Report Lag: Evidence From Saudi. SAGE Open, 14(2), 1–14. https://doi.org/10.1177/21582440241241171
Waluyo. (2017). The Effect of Good Corporate Governance on Tax Avoidance: Empirical Study of the Indonesian Banking Company. The Accounting Journal of BINANIAGA, 02(02), 1–10.
Wati, Y., Irman, M., Suharti, Suyono, & Renaldo, N. (2023). CSR, Good Corporate Governance, Corporate Value: Moderation of Financial Performance. Jurnal Akuntansi Keuangan Dan Bisnis, 16(2), 353–362. https://doi.org/10.35143/jakb.v16i2.6064
Published
2024-05-25
How to Cite
HADI, Syukri et al.
The Impact of Audit Reputation on Stakeholder Trust: A Qualitative Analysis of Key Influencing Factors.
International Conference on Business Management and Accounting, [S.l.], v. 2, n. 2, p. 368-372, may 2024.
ISSN 2988-5590.
Available at: <https://ejournal.pelitaindonesia.ac.id/ojs32/index.php/ICOBIMA/article/view/4390>. Date accessed: 19 apr. 2025.
doi: https://doi.org/10.35145/icobima.v2i2.4390.
Section
Articles
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