Indonesia Conference Directory

ISA (International Audit Standards) No 600 is implemented in order to mitigate the problem of audit failures in group entities, especially audit quality on component entities / subsidiaries. In Indonesia ISA 600 was adopted as SA 600 as a substitute for AU 543 where the group auditor was responsible for the entire audit process including opinion. In its application, there were complaints regarding SA 600 due to the impact on audit quality, client movement, including the reduction in audit fees. This study was conducted to determine the auditors perceptions about the impact of the application of SA 600 on audit quality, and audit client movement / change in Indonesia. This research is expected to be a reference in regulators policy recommendations related to the impact of the application of SA 600 in Indonesia. The research data was obtained from primary data (questionnaire and FGD results) and secondary data (literature study). The methodology used in this research is quantitative and qualitative methods, the further testing of data using descriptive statistical analysis and different tests. From the results of the distribution of questionnaires and FGDs, it was found that SA 600 could basically improve the quality of audits when their implementation was carried out according to established standards. But on the other hand, the application of SA 600 has an impact on the movement of audit clients (especially for component companies / subsidiaries) who move to follow the auditor group of the company.