How to cite this paper
Herusetya, A & Jaunanda, M. (2021). Does industry expertise at engagement partner and audit firm level matter in emerging market? Evidence from Indonesia.Accounting, 7(4), 951-964.
Refrences
Abodia, D., Lin, C.J., & Petacchi, R. (2015). Capital market consequences of audit partner quality. The Accounting Review, 90(6), 2143-2176.
Abodia, D., Siddiqui, S., & Vinelli, A. (2016). Does Engagement Partner Perceived Expertise Matter? Evidence from the U.S. Operations of the Big 4 Audit Firms. Northwestern University and PCAOB. Available at: https://papers.ssrn.com/sol3/papers. cfm?abstract_id=2840332
Audousset-Coulier, S., Jeny, A., & Jiang, L. (2016). The Validity of auditor industry specialization measures. Auditing: A Journal of Practice & Theory, 35(1), 139–161.
Balsam, S., Krishnan, J., & Yang, J.S. (2003). Auditor industry specialization and earnings quality. Auditing: A Journal of Practice & Theory, 22(2), 71-97.
Barton, J., & Simko, P.J. (2002). The balance sheet as an earnings management constraint. The Accounting Review, 77, 1–27.
Becker, C.L., Defond, M.L., Jiambalvo, J., & Subramanyam, K.R. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research, 15, 1-24.
Burke, J.J., Hoitash, R., & Hoitash, U. (2019). Audit partner identification and characteristics: Evidence from U.S. Form AP Filings. Auditing: A Journal of Practice & Theory, 38(3), 71-94.
Burnett, B. M., Cripe, B.M., Martin, G.W., & McAllister, B.P. (2012). Audit quality and the trade-off between accretive stock repurchases and accrual-based earnings management. The Accounting Review, 87(6), 1861-1884.
Carey, P., & Simnett, R. (2006). Audit partner tenure and audit quality. The Accounting Review, 81(3), 653-676.
Chan, H.K., & Wu, D. (2011). Aggregate quasi rents and auditor independence: Evidence from audit firm mergers in China. Contemporary Accounting Research, 28(1), 175- 213.
Chen, S., Su, S.Y.J, & Wu, D. (2010). Client importance, institutional improvements, and audit quality in China: An office and individual auditor level analysis. The Accounting Review, 85(1), 127–158.
Chi, H.Y., & Chin, C.L. (2011). Firm versus partner measures of auditor industry expertise and effects on auditor quality. Auditing: A Journal of Practice & Theory, 3(2), 201-229.
Chi, W., Douthett, E.B., & Lisic, L.L. (2012). Client importance and audit partner independence. Journal of Accounting and Public Policy, 31, 320-336.
Chi, W., Lisic, L.L., & Pevzner, M. (2011). Is enhanced audit quality associated with greater real earnings management? Accounting Horizons, 25(2), 315-335.
Chin, C.L, & Chi, H.Y. (2009). Reducing restatements with increased industry expertise. Contemporary Accounting Research, 26(3), 729-765.
Cianci, A.M., Houston, R.W., Montague, N.R., & Vogel, R. (2017). Audit partner identification: Unintended consequences on audit judgment. Auditing: A Journal of Practice & Theory, 36(4), 135-149.
Cohen, D., Dey, A., & Lys, T. (2008). Real and accrual-based earnings management in the Pre and Post Sarbanes Oxley periods. The Accounting Review, 83, 757–787.
Dao, M., Xu, H., & Liu, L. (2018). The impact of disclosure of audit engagement partners on audit quality: Evidence from the USA. International Journal Audit, 23, 112-124.
DeAngelo, L.E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3, 183-199.
Dechow, P.M., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50, 344-401.
Dechow, P.M., Sloan, R.G., & Sweeney, A.P. (1995). Detecting earnings management. The Accounting Review, 70(2), 193-225.
Defond, M., & Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and Economics, 58, 275-326.
Fama, E., & French, K. (1997). Industry costs of equity. Journal of Financial Economics, 43, 153–193.
Fan, Y., Barua, A., Cready, W.M., & Thomas, W.B. (2010). Managing earnings using classification shifting: Evidence from quarterly special items. The Accounting Review, 85(4), 1303-1323.
Fargler, N.L., Hou, W, & Zhang, J.Z. (2019). Do banks audited by specialists engage in less real activities management? Evidence from repurchases agreements. Auditing: A Journal of Practice and Theory, 38(1), 149-169.
Francis, J.R. (2004). What do we know about audit quality? The British Accounting Review, 36, 345-368.
Graham, J.R., Harvey, C.R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40, 3–73.
Greiner, A., Kohlbeck, M.J., & Smith, T.J. (2017). The relationship between aggressive real earnings management and current and future audit fees. Auditing: A Journal of Practice & Theory, 36(1), 85-107.
Gul, F.A., Fung, S.Y.K., & Jaggi, B. (2009). Earning quality: Some evidence on the role of auditor tenure and auditor’s industry expertise. Journal of Accounting and Economics, 47, 265-287.
Gul, F.A., Ma, S.N., & Lai, K. (2017). Busy auditors, partner-client tenure, and audit quality: Evidence from an emerging market. Journal of International Accounting Research, 16(1), 83-105.
Gul, F.A., Wu, D., & Yang, Z. (2013). Do individual auditors affect audit quality? Evidence from archival data. The Accounting Review, 88(6), 1993-2023.
Herusetya, A. (2009a). The effect of the implementation of corporate governance and external auditors with industry specialties on earnings management. Jurnal Auditing dan Akuntansi Indonesia (JAAI), 13(2), 167-188.
Herusetya, A. (2009b). The effect of auditor size and auditor specialization on earnings quality. Jurnal Akuntansi dan Keuangan Indonesia (JAKI), 6(1), 46-70.
Herusetya, A. (2012). The analysis of audit quality analysis on earnings management: Study of composite measure versus conventional measure approach. Jurnal Akuntansi dan Keuangan Indonesia, 9(2), 117-135.
Hossain, S., Monroe, G.S., Wilson, M., & Jubb, C. (2016). The Effect of networked clients’ economic importance on audit quality. Auditing: A Journal of Practice and Theory, 35, 79-103.
Hsieh, Y.T., & Lin, C.J. (2016). Audit firms’ client acceptance decisions: does partner-level industry expertise matter? Auditing: A Journal of Practice & Theory, 35(2), 97-120.
Ittonen, K., Johnstone, K., & Myllymäki, E. R. (2015). Audit partner public-client specialisation and client abnormal accruals. European Accounting Review, 24(3), 607-633.
Ittonen, K., Vahamaa, E., & Vahamaa, S. (2013). Female auditors and accruals quality. Accounting Horizons, 27(2), 205-228.
Ji, A.E., Kumar, K.R., Pei, H., & Xue, Y. (2019). Does market value auditors’ industry specializations? Evidence from the contagious effects of restatements. Accounting Horizons, 33(1), 125-152.
Jones, J.J. (1991). Earnings management during import relief investigations. Journal of Accounting Research, 29(2), 193-228.
Kim, Y., & Park, M.S. (2014). Real activities manipulation and auditors’ client-retention decisions. The Accounting Review, 89(1), 367-401.
Knechel, W.R., Naiker, V., & Pacheco, G. (2007). Does auditor industry specialization matter? Evidence from market reaction to auditor switches. Auditing: A Journal of Practice & Theory, 26(1), 19-45.
Krishnan, G.V. (2003). Audit quality and the pricing of discretionary accruals. Auditing: A Journal of Practice & Theory, 22(1), 109-126.
Lee, H.S.G, Nagy, A.L., & Zimmerman, A.B. (2019). Audit partner assignments and audit quality in the United States. The Accounting Review, 94(2), 297-323.
Lennox, C.S., & Wu, X. (2018). A review of the archival literature on audit partners. Accounting Horizons, 32(2), 1-35.
Lim, C. Y., & Tan, H.T. (2008). Non-audit service fees and audit quality: The impact of auditor specialization. Journal of Accounting Research, 46(1), 199-246.
Menon, K., & Williams, D.D. (2004). Former audit partners and abnormal accruals. The Accounting Review, 79(4), 1095-1118.
Myers, J., Myers, L., & Omer, T. (2003). Exploring the term of the auditor–client relationship and the quality of earnings: A case for mandatory auditor rotation? The Accounting Review, 78, 779–799.
Niel, T.L., & Riley, R.R. (2004). Auditor industry specialist research design. Auditing: A Journal of Practice & Theory, 23(2), 169-177.
Ontorael, R. & Geraldina, I. (2017). The trade-off between accrual and real earnings management in Indonesia’s publicly listed conventional banks. Jurnal Akuntansi dan Keuangan Indonesia, 14(1), 46 – 61.
Peraturan Pemerintah Republik Indonesia No. 20 Tahun 2015 Tentang Praktik Akuntan Publik.
Available at: https://jdih.kemenkeu.go.id/fullText/2015/20TAHUN2015PP.pdf
Pujilestari, R., & Herusetya, A. (2013). The effect of audit quality on real earnings management - Strategic revenue recognition. Jurnal Akuntansi dan Keuangan, 15(2), 75- 85.
Reichelt, K.J., & Wang, D. (2010). National and office-specific measures of auditor industry expertise and effects on audit quality. Journal of Accounting Research, 48(3), 647-686.
Reynolds, K.J., & Francis, J.R. (2001). Does size matter? The influence of large clients on office- level auditor reporting decisions. Journal of Accounting and Economics, 30(3), 375-400.
Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335-370.
Stein, S.E. (2019). Auditor industry specialization and accounting estimates: Evidence from assets impairments. Auditing: A Journal of Practice & Theory, 38(2), 207- 234.
Susanto, A., & Herusetya, A. (2014). The Impact of client importance on earnings management and going concern opinion: Empirical evidence from Indonesia. Jurnal Akuntansi & Auditing Indonesia (JAAI), 18(1), 75-88.
Taylor, S.D. (2011). Does audit fee homogeneity exist? Premium and discounts attributable to individual partners. Auditing: A Journal of Practice & Theory, 30(4), 249- 272.
Tucker, J.W., & Zarowin, P.A. (2006). Does Income smoothing improve earnings informativeness? The Accounting Review, 81(1), 251–270.
Wang, Y., Yu, L., & Zhao, Y. (2015). The association between audit-partner quality and engagement quality: Evidence from financial reporting misstatements. Auditing: A Journal of Practice & Theory, 34(3), 81-111.
Zang, A.Y. (2012). Evidence on the trade-off between real activities manipulation and accrual- based earnings management. The Accounting Review, 87(2), 675-703.
Abodia, D., Siddiqui, S., & Vinelli, A. (2016). Does Engagement Partner Perceived Expertise Matter? Evidence from the U.S. Operations of the Big 4 Audit Firms. Northwestern University and PCAOB. Available at: https://papers.ssrn.com/sol3/papers. cfm?abstract_id=2840332
Audousset-Coulier, S., Jeny, A., & Jiang, L. (2016). The Validity of auditor industry specialization measures. Auditing: A Journal of Practice & Theory, 35(1), 139–161.
Balsam, S., Krishnan, J., & Yang, J.S. (2003). Auditor industry specialization and earnings quality. Auditing: A Journal of Practice & Theory, 22(2), 71-97.
Barton, J., & Simko, P.J. (2002). The balance sheet as an earnings management constraint. The Accounting Review, 77, 1–27.
Becker, C.L., Defond, M.L., Jiambalvo, J., & Subramanyam, K.R. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research, 15, 1-24.
Burke, J.J., Hoitash, R., & Hoitash, U. (2019). Audit partner identification and characteristics: Evidence from U.S. Form AP Filings. Auditing: A Journal of Practice & Theory, 38(3), 71-94.
Burnett, B. M., Cripe, B.M., Martin, G.W., & McAllister, B.P. (2012). Audit quality and the trade-off between accretive stock repurchases and accrual-based earnings management. The Accounting Review, 87(6), 1861-1884.
Carey, P., & Simnett, R. (2006). Audit partner tenure and audit quality. The Accounting Review, 81(3), 653-676.
Chan, H.K., & Wu, D. (2011). Aggregate quasi rents and auditor independence: Evidence from audit firm mergers in China. Contemporary Accounting Research, 28(1), 175- 213.
Chen, S., Su, S.Y.J, & Wu, D. (2010). Client importance, institutional improvements, and audit quality in China: An office and individual auditor level analysis. The Accounting Review, 85(1), 127–158.
Chi, H.Y., & Chin, C.L. (2011). Firm versus partner measures of auditor industry expertise and effects on auditor quality. Auditing: A Journal of Practice & Theory, 3(2), 201-229.
Chi, W., Douthett, E.B., & Lisic, L.L. (2012). Client importance and audit partner independence. Journal of Accounting and Public Policy, 31, 320-336.
Chi, W., Lisic, L.L., & Pevzner, M. (2011). Is enhanced audit quality associated with greater real earnings management? Accounting Horizons, 25(2), 315-335.
Chin, C.L, & Chi, H.Y. (2009). Reducing restatements with increased industry expertise. Contemporary Accounting Research, 26(3), 729-765.
Cianci, A.M., Houston, R.W., Montague, N.R., & Vogel, R. (2017). Audit partner identification: Unintended consequences on audit judgment. Auditing: A Journal of Practice & Theory, 36(4), 135-149.
Cohen, D., Dey, A., & Lys, T. (2008). Real and accrual-based earnings management in the Pre and Post Sarbanes Oxley periods. The Accounting Review, 83, 757–787.
Dao, M., Xu, H., & Liu, L. (2018). The impact of disclosure of audit engagement partners on audit quality: Evidence from the USA. International Journal Audit, 23, 112-124.
DeAngelo, L.E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3, 183-199.
Dechow, P.M., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50, 344-401.
Dechow, P.M., Sloan, R.G., & Sweeney, A.P. (1995). Detecting earnings management. The Accounting Review, 70(2), 193-225.
Defond, M., & Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and Economics, 58, 275-326.
Fama, E., & French, K. (1997). Industry costs of equity. Journal of Financial Economics, 43, 153–193.
Fan, Y., Barua, A., Cready, W.M., & Thomas, W.B. (2010). Managing earnings using classification shifting: Evidence from quarterly special items. The Accounting Review, 85(4), 1303-1323.
Fargler, N.L., Hou, W, & Zhang, J.Z. (2019). Do banks audited by specialists engage in less real activities management? Evidence from repurchases agreements. Auditing: A Journal of Practice and Theory, 38(1), 149-169.
Francis, J.R. (2004). What do we know about audit quality? The British Accounting Review, 36, 345-368.
Graham, J.R., Harvey, C.R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of Accounting and Economics, 40, 3–73.
Greiner, A., Kohlbeck, M.J., & Smith, T.J. (2017). The relationship between aggressive real earnings management and current and future audit fees. Auditing: A Journal of Practice & Theory, 36(1), 85-107.
Gul, F.A., Fung, S.Y.K., & Jaggi, B. (2009). Earning quality: Some evidence on the role of auditor tenure and auditor’s industry expertise. Journal of Accounting and Economics, 47, 265-287.
Gul, F.A., Ma, S.N., & Lai, K. (2017). Busy auditors, partner-client tenure, and audit quality: Evidence from an emerging market. Journal of International Accounting Research, 16(1), 83-105.
Gul, F.A., Wu, D., & Yang, Z. (2013). Do individual auditors affect audit quality? Evidence from archival data. The Accounting Review, 88(6), 1993-2023.
Herusetya, A. (2009a). The effect of the implementation of corporate governance and external auditors with industry specialties on earnings management. Jurnal Auditing dan Akuntansi Indonesia (JAAI), 13(2), 167-188.
Herusetya, A. (2009b). The effect of auditor size and auditor specialization on earnings quality. Jurnal Akuntansi dan Keuangan Indonesia (JAKI), 6(1), 46-70.
Herusetya, A. (2012). The analysis of audit quality analysis on earnings management: Study of composite measure versus conventional measure approach. Jurnal Akuntansi dan Keuangan Indonesia, 9(2), 117-135.
Hossain, S., Monroe, G.S., Wilson, M., & Jubb, C. (2016). The Effect of networked clients’ economic importance on audit quality. Auditing: A Journal of Practice and Theory, 35, 79-103.
Hsieh, Y.T., & Lin, C.J. (2016). Audit firms’ client acceptance decisions: does partner-level industry expertise matter? Auditing: A Journal of Practice & Theory, 35(2), 97-120.
Ittonen, K., Johnstone, K., & Myllymäki, E. R. (2015). Audit partner public-client specialisation and client abnormal accruals. European Accounting Review, 24(3), 607-633.
Ittonen, K., Vahamaa, E., & Vahamaa, S. (2013). Female auditors and accruals quality. Accounting Horizons, 27(2), 205-228.
Ji, A.E., Kumar, K.R., Pei, H., & Xue, Y. (2019). Does market value auditors’ industry specializations? Evidence from the contagious effects of restatements. Accounting Horizons, 33(1), 125-152.
Jones, J.J. (1991). Earnings management during import relief investigations. Journal of Accounting Research, 29(2), 193-228.
Kim, Y., & Park, M.S. (2014). Real activities manipulation and auditors’ client-retention decisions. The Accounting Review, 89(1), 367-401.
Knechel, W.R., Naiker, V., & Pacheco, G. (2007). Does auditor industry specialization matter? Evidence from market reaction to auditor switches. Auditing: A Journal of Practice & Theory, 26(1), 19-45.
Krishnan, G.V. (2003). Audit quality and the pricing of discretionary accruals. Auditing: A Journal of Practice & Theory, 22(1), 109-126.
Lee, H.S.G, Nagy, A.L., & Zimmerman, A.B. (2019). Audit partner assignments and audit quality in the United States. The Accounting Review, 94(2), 297-323.
Lennox, C.S., & Wu, X. (2018). A review of the archival literature on audit partners. Accounting Horizons, 32(2), 1-35.
Lim, C. Y., & Tan, H.T. (2008). Non-audit service fees and audit quality: The impact of auditor specialization. Journal of Accounting Research, 46(1), 199-246.
Menon, K., & Williams, D.D. (2004). Former audit partners and abnormal accruals. The Accounting Review, 79(4), 1095-1118.
Myers, J., Myers, L., & Omer, T. (2003). Exploring the term of the auditor–client relationship and the quality of earnings: A case for mandatory auditor rotation? The Accounting Review, 78, 779–799.
Niel, T.L., & Riley, R.R. (2004). Auditor industry specialist research design. Auditing: A Journal of Practice & Theory, 23(2), 169-177.
Ontorael, R. & Geraldina, I. (2017). The trade-off between accrual and real earnings management in Indonesia’s publicly listed conventional banks. Jurnal Akuntansi dan Keuangan Indonesia, 14(1), 46 – 61.
Peraturan Pemerintah Republik Indonesia No. 20 Tahun 2015 Tentang Praktik Akuntan Publik.
Available at: https://jdih.kemenkeu.go.id/fullText/2015/20TAHUN2015PP.pdf
Pujilestari, R., & Herusetya, A. (2013). The effect of audit quality on real earnings management - Strategic revenue recognition. Jurnal Akuntansi dan Keuangan, 15(2), 75- 85.
Reichelt, K.J., & Wang, D. (2010). National and office-specific measures of auditor industry expertise and effects on audit quality. Journal of Accounting Research, 48(3), 647-686.
Reynolds, K.J., & Francis, J.R. (2001). Does size matter? The influence of large clients on office- level auditor reporting decisions. Journal of Accounting and Economics, 30(3), 375-400.
Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335-370.
Stein, S.E. (2019). Auditor industry specialization and accounting estimates: Evidence from assets impairments. Auditing: A Journal of Practice & Theory, 38(2), 207- 234.
Susanto, A., & Herusetya, A. (2014). The Impact of client importance on earnings management and going concern opinion: Empirical evidence from Indonesia. Jurnal Akuntansi & Auditing Indonesia (JAAI), 18(1), 75-88.
Taylor, S.D. (2011). Does audit fee homogeneity exist? Premium and discounts attributable to individual partners. Auditing: A Journal of Practice & Theory, 30(4), 249- 272.
Tucker, J.W., & Zarowin, P.A. (2006). Does Income smoothing improve earnings informativeness? The Accounting Review, 81(1), 251–270.
Wang, Y., Yu, L., & Zhao, Y. (2015). The association between audit-partner quality and engagement quality: Evidence from financial reporting misstatements. Auditing: A Journal of Practice & Theory, 34(3), 81-111.
Zang, A.Y. (2012). Evidence on the trade-off between real activities manipulation and accrual- based earnings management. The Accounting Review, 87(2), 675-703.