MENGAPA PERUSAHAAN MELAKUKAN AUDITOR SWITCH?

MENGAPA PERUSAHAAN MELAKUKAN AUDITOR SWITCH?

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The existence of a large number of accounting firms allowsprovides companies choices whether to stay with current firm or switchto another accounting firm.Decision of Minister of FinanceNo.423/KMK.

06/2002 states that a company must switch auditor afterfive years of consecutive assignment.This is mandatory.The questionrises when a company voluntarily where to buy new iphone 14 in minneapolis mn switches its auditor.

Why does thishappen?One of the reasons is that management does not satisfy withauditor opinion, except for unqualified opinion.New management teamwould directly or indirectly encourage auditor switch to align accountingand reporting odyssey baseball putter cover policies.Moreover an expanding company expects positivereaction when it does auditor switch.

Profitability is also one reason fora company to switch auditor, for example, when a company earns moreprofit it tends to hire more credible auditor.On the other hand, when thecompany faces a financial distress, it probably would switch auditor aswell.