THE INFLUENCE OF KAP SIZE, PROFITABILITY, LEVERAGE, AND AUDIT DELAY ON AUDITOR SWITCHING

Auditor switching refers to the change of external auditors responsible for auditing a company in each financial reporting period. It is a phenomenon in the audit field that can occur either mandatorily due to regulations or voluntarily based on managerial decisions. This study examines the influence of KAP size, profitability, leverage, and audit delay on auditor switching. The research was conducted on financial sector companies listed on the Indonesia Stock Exchange during the 2021–2023 period. The population consisted of 118 companies, and the purposive sampling method was used to select the sample, resulting in 34 companies over the three-year research period. The data analysis technique used in this study was logistic regression analysis. The results showed that profitability had a negative influence on auditor switching, indicating that companies with higher profitability levels tended to retain their auditors to maintain audit stability and sustainability. KAP size did not influence auditor switching, as companies tended to retain auditors with good reputations. Leverage also did not influence auditor switching, as the company's debt level was not a major factor in the decision to switch auditors. Additionally, audit delay did not influence auditor switching, indicating that audit delays do not necessarily reflect dissatisfaction with the auditor. The implications of this research can serve as a consideration for companies and auditors in decision-making related to auditor switching, as well as assist regulators in supervising existing policies.