Consequences of Audit Quality in Signaling Theory Perspective

Abstract

The purpose of this research is to examine the effect of
Audit Quality toward higher fees, lower litigation; good
reputation; client and higher valuation. Mostly the research
about audit quality only investigate the determinant factors,
meanwhile this research investigate the effect of audit quality.
The samples of this research are 101 Accountants in many
profession around Jakarta roomates selected by purposive
sampling. Path analysis is used in this research. The results
shown that audit quality have an effect toward higher fees, audit
quality have an effect toward lower litigation, audit quality have
an effect toward good reputation and audit quality have an effect
toward higher valuation client.