摘要：The existence of a large number of accounting firms allows provides companies choices whether to stay with current firm or switch to another accounting firm. Decision of Minister of Finance No.423/KMK.06/2002 states that a company must switch auditor after five years of consecutive assignment. This is mandatory. The question rises when a company voluntarily switches its auditor. Why does this happen? One of the reasons is that management does not satisfy with auditor opinion, except for unqualified opinion. New management team would directly or indirectly encourage auditor switch to align accounting and reporting policies. Moreover an expanding company expects positive reaction when it does auditor switch. Profitability is also one reason for a company to switch auditor, for example, when a company earns more profit it tends to hire more credible auditor. On the other hand, when the company faces a financial distress, it probably would switch auditor as well.
关键词：accounting firm; auditor opinion; auditor switch; company
