Home / Vol. 1 - No. 3 / Article

THE EFFECT OF AUDITOR SPECIALIZATION, AUDIT CAPACITY STRESS, AUDITOR ROTATION, AND ENTRENCHMENT EFFECT ON AUDIT QUALITY (IN PROPERTY, REAL ESTATE, AND CONSTRUCTION COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE (BEI) 2020-2024)

Abstract

Accounting-related misconduct has made audit quality increasingly important to ensure an effective audit process and to enable auditors to issue audited financial statements that comply with established standards and applicable accounting principles. This study examines the effects of auditor specialization, audit capacity stress, audit rotation, and the entrenchment effect on audit quality. Using an empirical approach, the research focuses on firms in the property, real estate, and construction sectors listed on the Indonesia Stock Exchange (IDX) over the 2020–2024 period. A quantitative method was applied, with 155 observations selected through purposive sampling. The data were analyzed using multiple linear regression in SPSS 22. The findings indicate that auditor specialization and the entrenchment effect significantly influence audit quality, whereas audit capacity stress and audit rotation do not show a significant effect on audit quality.