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How Audit Delays, Financial Distress, and Audit Opinions Affect Auditor Switching? A Study on Food and Beverage Companies in Indonesia

Salsabila Khotrun Nada

University of Merdeka Malang, Indonesia

Dewi Kusumowati

University of Merdeka Malang, Indonesia

Wahyu Setiyorini

University of Merdeka Malang, Indonesia

ISSN: 3078-4131 (Print)

DOI: https://doi.org/10.71215/cjbpp.202622

Keywords: Audit Delays, Audit Opinions, Auditor Switching, Financial Distress

Published: 2026-01-06

How to Cite in APA Style: Nada. S., Kusumowati. D. & Setiyorini. W, (2026). How audit delays, financial distress, and audit opinions affect auditor switching? A study on food and beverage companies in Indonesia. Cambodia Journal for Business and Professional Practice, 2026(2), 28–50.

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Abstract

Auditor switching is the process of replacing an old auditor or public accounting firm with a new one. Companies that use a Public Accounting Firm (KAP) for a long period of time can result in a family relationship between the two, which can affect audit quality. The purpose of this study is to analyze the effect of audit delays, financial distress, and audit opinions on auditor switching. The population of this study is the food and beverage manufacturing companies in Indonesia and have been listed on the Indonesia Stock Exchange (IDX) in the 2019-2023 period. Using a purposive sampling technique method, nine companies were selected for the study. The data informing this study are secondary data whose sources come from the audited financial statements of food and beverage companies listed on the IDX. The technique used is documentation using historical data. The data analysis technique used logistic regression analysis with p < 0.05. The results of the study indicated that audit delays and audit opinions have no effect on auditor switching while financial distress affects auditor switching. The study implication is that auditors and regulators need to shift their focus, instead of prioritizing audit opinions and timeliness as drivers of auditor retention, they should pay greater attention to the financial health of their client companies.

Authors’ Biography

Salsabila Khotrun Nada has obtained a Bachelor degree of Business and Economics Faculty from the University of Merdeka Malang, Indonesia. She works as an accountant at The Free Nutritious Meals program (MBG). MBG is an Indonesian government initiative aimed at providing free, nutritious meals to people in need, especially students (from early childhood education up to high school), young children (under five), pregnant women, and breastfeeding mothers. She is responsible for managing financial administration and logistics, including reconciling beneficiary records, budget proposals, processing invoices, and creating periodic reports. Additionally, to ensure the proper management of stock inventory, create supporting documents such as stock cards, pay slips, and proposals for the next period. She also monitors operational expenses, food costs, volunteer wages, and validates the receipt of goods to ensure they match the orders.

Dewi Kusumowati is a lecturer, researcher, and Micro, Small, and Medium Enterprises accounting trainee with over 25 years of experience in higher education. She has obtained a Master degree of Accounting Management from the University of Merdeka Malang, Indonesia. She also has had a strong educational background form Indonesia, including a Bachelor of Economics, a Diploma of College of English Language and Literature, and a cProfessional Accountant Education. She has been working for the University of Merdeka Malang since 1999, starting as a lecturer and to an International Class Program Director at Faculty of Economics and Business. She is currently a Managing Editor of Accounting and Tax Journal (JAP).

Wahyu Setiyorini is a lecturer, researcher, and community empowerer in several national and regional empowerment programs in the field of community economic empowerment. In the beginning of her career she worked as an auditor at a public accounting firm in 1995. She has obtained a Master degree of Accounting Management from the University of Merdeka Malang, Indonesia. She has been working for the University of Merdeka Malang since 1997, as a lecturer for regular and International Class Program at Faculty of Economics and Business with over 25 years of experience in higher education She is currently a deputy Editor of Accounting and Tax Journal (JAP)

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