Measurement Models of Public Companies Audit Quality : A Perspective in Selecting Good Quality Audit Firms from Indonesian Public Companies

The development of the domestic and foreign investors participation in the Indonesian stock market has given a rise to the importance of information on the quality of auditors and its audit on public companies financial statements in Indonesia. As huge scandals involving large audit firms such as Arthur Anderson in the US have raised doubts from the public to audit quality, the audit quality is challenged to assess company's performance more objectively and provide confidence to investors in the capital markets in selecting the companies to invest. This book is a comprehensive study regarding factors predominantly affecting the quality of audit in public companies in Indonesia. The validity of six variables have been tested to measure their effects on audit quality. One hundred and ninety eight directors or financial managers of the companies participated in this research. For academics, observers and business people who want to know more about the process of measuring the audit quality of Indonesian public companies and the factors that affect the measurement, this book is an essential guide to read.