Auditor in Charge Knowledge and Opinion Accuracy: Evidence from Indonesia

This research is aimed to examine (1) Effect of auditor in charge specialization on opinion accuracy (2) Effect of auditor in charge tenure on opinion accuracy. With logistic regression, using sample of manufacture companies listed in Indonesian Stock Exchange 2012-2015, this research analyze effect of auditor in charge specialization and tenure on relationship between financial distress and auditor opinion. As expected, financial distressed (healthy) companies are more likely to get going concern (non-going concern) opinion after audited by auditor in charge with high auditor specialization. In short term, financial distressed (healthy) companies are more likely to get going concern (non-going concern) opinion after audited by auditor in charge with long tenure. In long term, financial distressed (healthy) companies are less likely to get going concern (non-going concern) opinion after audited by auditor in charge with long tenure.