THE INFLUENCE OF COMPANY SIZE, AUDIT COMMITTEE, AND AUDIT TENURE ON AUDIT QUALITY IN PROPERTY AND REAL ESTATE SECTOR COMPANIES LISTED ON THE IDX (CONFERENCE)

Salsabila Nur Hidayah; Kamilah Sa’diah

Salsabila Nur Hidayah Universitas Binaniaga Indonesia
Kamilah Sa’diah Universitas Binaniaga Indonesia

Keywords: Audit Committee; Audit Quality; Audit Tenure; Company Size; Property and Real Estate

Abstract

Audit quality plays a crucial role in enhancing the reliability of financial statements and reducing information asymmetry between management and shareholders. This study aims to analyze the influence of company size, audit committee, and audit tenure on audit quality in property and real estate sector companies listed on the IDX during the 2020–2024 period. This study employed a quantitative research approach using secondary data obtained from annual reports and consolidated financial statements. The sample consisted of 20 companies with a total of 100 firm-year observations selected through purposive sampling. Data were analyzed using binary logistic regression with IBM SPSS Statistics version 20. Audit quality was proxied based on the classification of public accounting firms into Big Four and Non-Big Four audit firms. The results indicate that company size and audit tenure do not significantly influence audit quality, whereas the audit committee has a significant effect on audit quality. Simultaneously, company size, audit committee, and audit tenure significantly influence audit quality. These findings suggest that the audit committee is a more dominant factor in influencing audit quality than company size and audit tenure. This study highlights the importance of strengthening corporate governance mechanisms, particularly the role of the audit committee, in supporting improvements in audit quality.