Political Connection, Auditor Selection, Audit Fee & Audit Report Lag : A Review in Indonesia

Lidya Utamaningsi


This study aims to explore the political connection regarding three auditing issues which are auditor selection, audit fee and audit report lag. We collect and analyze articles related to the topics published from 1997 to 2018. Based on the literature review, I found that connected firms in Indonesia tend to choose non big 4 auditor and pay greater audit than their non-connected peers. I also found that connected firms in Indonesia have a longer audit report which commonly due to tunneling through related party transactions, therefore the auditor assessed that there is a higher risk related to those firms so that more efforts are needed in the audit process. For further research, I suggest to explore the relationship between companies that have political connections with audit quality and audit fees using the effectiveness of the BoC and AC as moderating variables.


political connection, audit, auditor selection, audit fee, audit report lag

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DOI: http://dx.doi.org/10.52155/ijpsat.v13.2.754


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