Pub Date : 2019-10-01DOI: 10.2991/aprish-18.2019.35
Namira Chaldea, R. Lupiyoadi
This study aims to identify methods to drive engagement with a mobile game by exploring the factors that affect engagement through a literature review and in-depth interviews with experts, and applying Exploratory Factor Analysis. The data are collected from a survey of mobile game players of CV.X, a casual idle clicker game. This study finds our factors of engagement: aesthetics, felt involvement, game mechanics, and endurability. Managers can improve players’ engagement by creating an aesthetic aimed for usability of the game, having customization options, creating a cycle of goals and achievement to keep players interested, and creating mechanics that are interesting but not limited to unique and new designs. Keywords—engagement, freemium, mobile game
{"title":"Driving Mobile Game Engagement: Factors and User Metrics","authors":"Namira Chaldea, R. Lupiyoadi","doi":"10.2991/aprish-18.2019.35","DOIUrl":"https://doi.org/10.2991/aprish-18.2019.35","url":null,"abstract":"This study aims to identify methods to drive engagement with a mobile game by exploring the factors that affect engagement through a literature review and in-depth interviews with experts, and applying Exploratory Factor Analysis. The data are collected from a survey of mobile game players of CV.X, a casual idle clicker game. This study finds our factors of engagement: aesthetics, felt involvement, game mechanics, and endurability. Managers can improve players’ engagement by creating an aesthetic aimed for usability of the game, having customization options, creating a cycle of goals and achievement to keep players interested, and creating mechanics that are interesting but not limited to unique and new designs. Keywords—engagement, freemium, mobile game","PeriodicalId":111073,"journal":{"name":"Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115317663","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-01DOI: 10.2991/aprish-18.2019.36
Syanni Yustiani, M. Ichsan
The purpose of this study is to analyze the transformation of the Inspectorate General (ITJEN) at the Ministry of Finance as an impact of the Directorate General’s (DGT) Taxation System Information (SIDJP) implementation. This study uses a case study and a qualitative approach with institutional theory to study the problem. Data collection is performed via documentation and interviews with key informants from the Institute of Internal Auditors (IIA), the DGT of Taxation, the Indonesian Supreme Audit Institution, the State Development Audit Agency, and the Auditor of Inspectorate General of Ministry of Finance. This study shows that the implementation of SIDJP engendered adaptation of ITJEN’s scope and practice, structure, auditor skill requirements, audit tools, audit sizes, and relationship with information technology departments, whereas the audit source and its relationship with the external auditor remained the same. Keywords—Internal audit, system information, institutional theory, institutional logic, Business Process Automation, Indonesian Public Sector.
{"title":"Business Process Automation: Internal Audit Function Adaptation Lesson Learned from Indonesian Public Sector","authors":"Syanni Yustiani, M. Ichsan","doi":"10.2991/aprish-18.2019.36","DOIUrl":"https://doi.org/10.2991/aprish-18.2019.36","url":null,"abstract":"The purpose of this study is to analyze the transformation of the Inspectorate General (ITJEN) at the Ministry of Finance as an impact of the Directorate General’s (DGT) Taxation System Information (SIDJP) implementation. This study uses a case study and a qualitative approach with institutional theory to study the problem. Data collection is performed via documentation and interviews with key informants from the Institute of Internal Auditors (IIA), the DGT of Taxation, the Indonesian Supreme Audit Institution, the State Development Audit Agency, and the Auditor of Inspectorate General of Ministry of Finance. This study shows that the implementation of SIDJP engendered adaptation of ITJEN’s scope and practice, structure, auditor skill requirements, audit tools, audit sizes, and relationship with information technology departments, whereas the audit source and its relationship with the external auditor remained the same. Keywords—Internal audit, system information, institutional theory, institutional logic, Business Process Automation, Indonesian Public Sector.","PeriodicalId":111073,"journal":{"name":"Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)","volume":"106 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122636131","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-01DOI: 10.2991/aprish-18.2019.41
Ruth Artia Heldifanny, R. Tobing
This study aims to analyze the implementation of a risk-based internal audit plan at University X. The real challenge for an internal audit in every organization including higher education is to recognize the disruption that may arise and to provide insights to the board. Because every organization has its own risk profile, a one-size-fits-all internal audit plan might not suit the organization’s needs. This paper discusses how disruptions in higher education lead to internal audits, disrupting their ways of implementing risk-based internal audits. Keywords—internal audit, risk-based internal audit, risk identification and assessment process, higher education disruption, higher education risk, internal audit disruption, catalyst of change
{"title":"Evaluation of Risk-Based Internal Audit Plan Implementation in The Era of Technology Disruption: Case Study at University X","authors":"Ruth Artia Heldifanny, R. Tobing","doi":"10.2991/aprish-18.2019.41","DOIUrl":"https://doi.org/10.2991/aprish-18.2019.41","url":null,"abstract":"This study aims to analyze the implementation of a risk-based internal audit plan at University X. The real challenge for an internal audit in every organization including higher education is to recognize the disruption that may arise and to provide insights to the board. Because every organization has its own risk profile, a one-size-fits-all internal audit plan might not suit the organization’s needs. This paper discusses how disruptions in higher education lead to internal audits, disrupting their ways of implementing risk-based internal audits. Keywords—internal audit, risk-based internal audit, risk identification and assessment process, higher education disruption, higher education risk, internal audit disruption, catalyst of change","PeriodicalId":111073,"journal":{"name":"Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117291810","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-01DOI: 10.2991/aprish-18.2019.19
Desy Alfa Irianti, Hanrozan Haznam
PT A is a small and medium enterprise (SME) engaged in manufacturing of dies, precision parts, checking fixtures, machinery, and molding for automotive production. In augmenting its sales, PT A wants to widen the market to include non-automotive industry because their products can be used in other industries as well. Unfortunately, the owner did not know the potential of the products. The present study helps PT A in understanding the capabilities and potentials of customers in the non-automotive market as well as to create strategies for market development. The data were obtained through a series of structured interviews with employees of PT A and non-automotive companies in Delta Silicon Cikarang to reveal their needs and the ability of PT A to meet the customers’ needs. The results of structured interviews were analyzed using several tools to view the capabilities using Core Competence Analysis and to examine the potential use of Customer Potential Analysis. The final result is determined by TOWS Matrix. From the analysis, several strategies for market development emerged: (1) reposition products by promoting cheap products and fast production, (2) expand market channel into the plastics, base metal products, and electronics industries, (3) revise and improve capability in production processes to enter new markets, (4) add a new line of current products, which is an advanced process after manufacturing dies and molds. Keywords—Core Competence Analysis, Customer Potential Analysis, Market Development Strategy, Non-Automotive Market, Small and Medium Enterprise (SME)
{"title":"Market Development Strategy For Pt A From The Side Of Capabilities And Potential Customers","authors":"Desy Alfa Irianti, Hanrozan Haznam","doi":"10.2991/aprish-18.2019.19","DOIUrl":"https://doi.org/10.2991/aprish-18.2019.19","url":null,"abstract":"PT A is a small and medium enterprise (SME) engaged in manufacturing of dies, precision parts, checking fixtures, machinery, and molding for automotive production. In augmenting its sales, PT A wants to widen the market to include non-automotive industry because their products can be used in other industries as well. Unfortunately, the owner did not know the potential of the products. The present study helps PT A in understanding the capabilities and potentials of customers in the non-automotive market as well as to create strategies for market development. The data were obtained through a series of structured interviews with employees of PT A and non-automotive companies in Delta Silicon Cikarang to reveal their needs and the ability of PT A to meet the customers’ needs. The results of structured interviews were analyzed using several tools to view the capabilities using Core Competence Analysis and to examine the potential use of Customer Potential Analysis. The final result is determined by TOWS Matrix. From the analysis, several strategies for market development emerged: (1) reposition products by promoting cheap products and fast production, (2) expand market channel into the plastics, base metal products, and electronics industries, (3) revise and improve capability in production processes to enter new markets, (4) add a new line of current products, which is an advanced process after manufacturing dies and molds. Keywords—Core Competence Analysis, Customer Potential Analysis, Market Development Strategy, Non-Automotive Market, Small and Medium Enterprise (SME)","PeriodicalId":111073,"journal":{"name":"Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)","volume":"140 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117141896","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-01DOI: 10.2991/aprish-18.2019.42
Rissa Alfatine Prakosa, D. Sari
Managerial ability is one of the factors that affect firm strategy and performance. However, most prior studies do not consider these managerial effects on firms. Hence, this paper used Data Envelope Analysis to see whether managers with higher ability can affect corporate tax avoidance. Using panel data from a sample of 172 public firms in Indonesia for five years, this study finds that the higher the managerial ability, the lower the tax avoidance practices occurring in the firm. This result is robust in several sensitivity tests. Keywords— tax avoidance; managerial ability; manager
{"title":"The Effect of Managerial Ability on Corporate Tax Avoidance","authors":"Rissa Alfatine Prakosa, D. Sari","doi":"10.2991/aprish-18.2019.42","DOIUrl":"https://doi.org/10.2991/aprish-18.2019.42","url":null,"abstract":"Managerial ability is one of the factors that affect firm strategy and performance. However, most prior studies do not consider these managerial effects on firms. Hence, this paper used Data Envelope Analysis to see whether managers with higher ability can affect corporate tax avoidance. Using panel data from a sample of 172 public firms in Indonesia for five years, this study finds that the higher the managerial ability, the lower the tax avoidance practices occurring in the firm. This result is robust in several sensitivity tests. Keywords— tax avoidance; managerial ability; manager","PeriodicalId":111073,"journal":{"name":"Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)","volume":"93 1110 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114336318","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-01DOI: 10.2991/aprish-18.2019.39
Vania Tanudjaja, E. Anas
Using a probit model and data of 743 merger and acquisition deals of ASEAN listed firms over the period 2007 to 2017; this research studies the extent that liquidity impacts firms' cash capacity in corporate investing decisions. We examine whether high liquidity firms decide to join a merger and acquisition’s bidding process and whether it affects their choice of payment method. We observe that high liquidity firms have managed their excess cash well through investments, and the probability of being M&A bidders is high. We found that high growth firms are likely to use cash payments in acquisitions. This more strongly affects financially constrained bidders, who face greater opportunity costs in holding cash. Keywords— M&As, method of payment, liquidity, financing, capital structure
{"title":"Does corporate liquidity affect the M&A decisions and methods of payment? Evidence in ASEAN listed firms","authors":"Vania Tanudjaja, E. Anas","doi":"10.2991/aprish-18.2019.39","DOIUrl":"https://doi.org/10.2991/aprish-18.2019.39","url":null,"abstract":"Using a probit model and data of 743 merger and acquisition deals of ASEAN listed firms over the period 2007 to 2017; this research studies the extent that liquidity impacts firms' cash capacity in corporate investing decisions. We examine whether high liquidity firms decide to join a merger and acquisition’s bidding process and whether it affects their choice of payment method. We observe that high liquidity firms have managed their excess cash well through investments, and the probability of being M&A bidders is high. We found that high growth firms are likely to use cash payments in acquisitions. This more strongly affects financially constrained bidders, who face greater opportunity costs in holding cash. Keywords— M&As, method of payment, liquidity, financing, capital structure","PeriodicalId":111073,"journal":{"name":"Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123064463","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-01DOI: 10.2991/aprish-18.2019.18
E. Adrianto, Trisacti Wahyuni
The purpose of this study is to assess the effectiveness and propose improvements on internal control over inventory management that can improve accountability of financial reporting in the National Commission on Human Rights. This research uses qualitative research methods and case study approach with the National Human Rights Commission as the unit of analysis. The results show that internal control over inventory management has not been effective. There are some risks that the controls are inadequate, which could potentially lead to material misstatement in the financial statements. This study found the storage and reporting processes in the inventory warehouse inadequate, unclear and incomplete standard operating procedures in the inventory warehouse, the Chart of Account is poorly understood and the inventory purchase document is invalid. This research suggests the creation of warehouse reporting mechanisms, hiring warehouse personnel, improvements to standard operating procedures in inventory warehouses, socializing the Chart of Account and establishing standard operating procedures for the preparation of inventory purchasing documents. Keywords— internal control, unternal control over financial reporting, inventory
{"title":"Evaluation of Internal Control Over Financial Reporting on Inventory Management: A Case Study on Inventory Management at National Human Right Commission","authors":"E. Adrianto, Trisacti Wahyuni","doi":"10.2991/aprish-18.2019.18","DOIUrl":"https://doi.org/10.2991/aprish-18.2019.18","url":null,"abstract":"The purpose of this study is to assess the effectiveness and propose improvements on internal control over inventory management that can improve accountability of financial reporting in the National Commission on Human Rights. This research uses qualitative research methods and case study approach with the National Human Rights Commission as the unit of analysis. The results show that internal control over inventory management has not been effective. There are some risks that the controls are inadequate, which could potentially lead to material misstatement in the financial statements. This study found the storage and reporting processes in the inventory warehouse inadequate, unclear and incomplete standard operating procedures in the inventory warehouse, the Chart of Account is poorly understood and the inventory purchase document is invalid. This research suggests the creation of warehouse reporting mechanisms, hiring warehouse personnel, improvements to standard operating procedures in inventory warehouses, socializing the Chart of Account and establishing standard operating procedures for the preparation of inventory purchasing documents. Keywords— internal control, unternal control over financial reporting, inventory","PeriodicalId":111073,"journal":{"name":"Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)","volume":"56 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132777764","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-01DOI: 10.2991/aprish-18.2019.38
Efendi Sutrisno, E. Anas
Recent rising coal prices starting in the second half of 2016 has motivated both existing coal companies and new players to dig deeper to expand their production capacities and to explore new sites. This exposes them to higher risks. A tool that not only quantifies business opportunities but also takes into account uncertainty in coal projects becomes crucial. The traditional valuation method of discounted cash flow (DCF) analysis has been used for very long time but it is not sufficient for mining because it does not capture the high uncertainty and operational flexibility in the industry. An alternative valuation method, real option (RO) analysis can complement the limitations of DCF. Most studies related to RO Analysis application in mining project have focused on coal price and mining cost volatilities, but none has examined the impact of foreign exchange rate volatility, especially the exchange rate between the US dollar (USD) and the Indonesian Rupiah (IDR) to the project value. This study aims to enrich the literature on RO analysis application using an Indonesian coal company as a case study. It shows that RO analysis improves decision making by taking into account uncertainty and management flexibility. Furthermore, this study examines how different volatilities impact project value. Besides price and cost volatilities studied previously, this study examines one additional parameter, the USD IDR exchange rate volatility, as well as how different option maturities affect project value. A case study analysis using quantitative method of project evaluation or capital budgeting is applied. Data are analyzed using descriptive and linear regression to form input parameters. First, DCF is applied; then, in order to capture uncertainty and management flexibility, RO Analysis is applied to complement the DCF method. This study confirms that RO Analysis improves decision making by accounting for uncertainty and management flexibility in the calculation. Volatility and option maturity are key parameters impacting the project value. The higher the volatility is, the higher the project value is. The longer the option life is, the higher the project value is. Keywords—Real Option Analysis, Discounted Cash Flow, Project Evaluation, Capital Budgeting
{"title":"The Application of Discounted Cash Flow and Real Option Analysis Methods for Coal Mining Projects with Abandonment and Expansion Options: A Case Study of Pt X in East Kalimantan, Indonesia","authors":"Efendi Sutrisno, E. Anas","doi":"10.2991/aprish-18.2019.38","DOIUrl":"https://doi.org/10.2991/aprish-18.2019.38","url":null,"abstract":"Recent rising coal prices starting in the second half of 2016 has motivated both existing coal companies and new players to dig deeper to expand their production capacities and to explore new sites. This exposes them to higher risks. A tool that not only quantifies business opportunities but also takes into account uncertainty in coal projects becomes crucial. The traditional valuation method of discounted cash flow (DCF) analysis has been used for very long time but it is not sufficient for mining because it does not capture the high uncertainty and operational flexibility in the industry. An alternative valuation method, real option (RO) analysis can complement the limitations of DCF. Most studies related to RO Analysis application in mining project have focused on coal price and mining cost volatilities, but none has examined the impact of foreign exchange rate volatility, especially the exchange rate between the US dollar (USD) and the Indonesian Rupiah (IDR) to the project value. This study aims to enrich the literature on RO analysis application using an Indonesian coal company as a case study. It shows that RO analysis improves decision making by taking into account uncertainty and management flexibility. Furthermore, this study examines how different volatilities impact project value. Besides price and cost volatilities studied previously, this study examines one additional parameter, the USD IDR exchange rate volatility, as well as how different option maturities affect project value. A case study analysis using quantitative method of project evaluation or capital budgeting is applied. Data are analyzed using descriptive and linear regression to form input parameters. First, DCF is applied; then, in order to capture uncertainty and management flexibility, RO Analysis is applied to complement the DCF method. This study confirms that RO Analysis improves decision making by accounting for uncertainty and management flexibility in the calculation. Volatility and option maturity are key parameters impacting the project value. The higher the volatility is, the higher the project value is. The longer the option life is, the higher the project value is. Keywords—Real Option Analysis, Discounted Cash Flow, Project Evaluation, Capital Budgeting","PeriodicalId":111073,"journal":{"name":"Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128718913","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-01DOI: 10.2991/aprish-18.2019.20
Hana Nurila Alfatin, Lianny Leo
This study aims to analyze risk management in the inventory cycle of manufacturing companies and aims to provide recommendations to reduce identified risks. This study uses small and medium enterprises as a case study because it has limited resources to respond to potential risks that threaten business continuity. The method used is qualitative descriptive method with case study approach. Data obtained through document analysis, observation, and in-depth interview. The results show that there are risks identified in the inventory cycle that have not been mitigated by the company's internal controls. Risk maturity assessment conducted before the study showed that the company was at the risk level of naïve and increased to risk defined after the research. Keywords—Risk analysis, Inventory cycle, Manufacturing, Small medium enterprise
{"title":"Risk Analysis in A Manufacturing Company's Inventory Cycle","authors":"Hana Nurila Alfatin, Lianny Leo","doi":"10.2991/aprish-18.2019.20","DOIUrl":"https://doi.org/10.2991/aprish-18.2019.20","url":null,"abstract":"This study aims to analyze risk management in the inventory cycle of manufacturing companies and aims to provide recommendations to reduce identified risks. This study uses small and medium enterprises as a case study because it has limited resources to respond to potential risks that threaten business continuity. The method used is qualitative descriptive method with case study approach. Data obtained through document analysis, observation, and in-depth interview. The results show that there are risks identified in the inventory cycle that have not been mitigated by the company's internal controls. Risk maturity assessment conducted before the study showed that the company was at the risk level of naïve and increased to risk defined after the research. Keywords—Risk analysis, Inventory cycle, Manufacturing, Small medium enterprise","PeriodicalId":111073,"journal":{"name":"Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)","volume":"76 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121979638","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-10-01DOI: 10.2991/aprish-18.2019.25
Erly Satya Graha Putri, R. Tobing
This paper discusses the reasons behind auditor or accounting firm switching and studies initial audit procedures. Auditors need to analyze the real reason behind auditor switching in order to make an appropriate decision during the client acceptance stage (an auditee’s willingness to share the real reason for auditor switching is questionable). Broadly speaking, there are two types of auditor switching: mandatory and voluntary. Our finding shows that the main driver of voluntary auditor switching for the specific firm studied in this case (referred to with the alias “Superannuation 12”) was to improve audit quality. A first-year audit will most likely have a higher risk than a recurring audit so auditors need to add several extended audit procedures as safeguards. These extended audit procedures should be properly implemented in all of the audit stages, except reporting stage. Therefore, the audit period for an initial audit is longer than for a recurring audit. The auditing firm involved in this case (referred to as “AP 111”) had some problems when performing initial audit procedures, which led the author to several suggestions for how this could be addressed authorities and the accounting firm itself. Keywords—accounting firm switching; auditor switching; communication with previous auditor; first-year audit; initial audit procedures.
{"title":"Auditor Switching and Initial Audit Procedures: A Case Study","authors":"Erly Satya Graha Putri, R. Tobing","doi":"10.2991/aprish-18.2019.25","DOIUrl":"https://doi.org/10.2991/aprish-18.2019.25","url":null,"abstract":"This paper discusses the reasons behind auditor or accounting firm switching and studies initial audit procedures. Auditors need to analyze the real reason behind auditor switching in order to make an appropriate decision during the client acceptance stage (an auditee’s willingness to share the real reason for auditor switching is questionable). Broadly speaking, there are two types of auditor switching: mandatory and voluntary. Our finding shows that the main driver of voluntary auditor switching for the specific firm studied in this case (referred to with the alias “Superannuation 12”) was to improve audit quality. A first-year audit will most likely have a higher risk than a recurring audit so auditors need to add several extended audit procedures as safeguards. These extended audit procedures should be properly implemented in all of the audit stages, except reporting stage. Therefore, the audit period for an initial audit is longer than for a recurring audit. The auditing firm involved in this case (referred to as “AP 111”) had some problems when performing initial audit procedures, which led the author to several suggestions for how this could be addressed authorities and the accounting firm itself. Keywords—accounting firm switching; auditor switching; communication with previous auditor; first-year audit; initial audit procedures.","PeriodicalId":111073,"journal":{"name":"Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)","volume":"56 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131820018","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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