The Effect of Audit Tenure, Audit Fee, and Auditor Specialization on Audit Quality

Journal: Economics, Business, Management, & Accounting Journal (Ebisma)

Publication: 2026-09-25

DOI: 10.61083/ebisma.v6i3.245

Abstract

This study aims to examine the effect of audit tenure, audit fee, and auditor specialization on audit quality in Consumer Non-Cyclicals sector companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. Audit quality is an important aspect in ensuring the reliability of financial information provided by companies to stakeholders. This study employs a quantitative approach using secondary data obtained from companies’ annual reports. The samples were selected using purposive sampling, resulting in 86 companies with a total of 258 observations. The hypotheses were tested using logistic regression analysis assisted by IBM SPSS version 31. The results indicate that audit tenure has a negative and significant effect on audit quality. This finding suggests that a longer auditor-client relationship tends to reduce the probability of achieving higher audit quality. Furthermore, audit fee has a positive and significant effect on audit quality, indicating that adequate audit compensation enables auditors to allocate sufficient resources and perform audit procedures more effectively. Auditor specialization also has a positive and significant effect on audit quality, as industry-specific knowledge and experience improve auditors’ ability to identify material misstatements and audit risks. Simultaneously, audit tenure, audit fee, and auditor specialization significantly affect audit quality. This study concludes that auditor-client relationship duration, audit compensation, and auditor industry expertise are important factors influencing audit quality.