Geographic Proximity and Audit Outcomes in Cases of COVID–19 Pandemic: Evidence from Indonesia

Iman Harymawan (), Raden Roro Widya Ningtyas Soeprajitno (), Mohammad Nasih () and Khairul Anuar Kamarudin ()

Humanities and Social Sciences Letters, 2022, vol. 10, issue 4, 569-583

Abstract: The geographic proximity has faced challenges with the existence of COVID-19 pandemic since 2019. This study aimed to scrutinize the effect of geographic proximity and audit quality by using COVID-19 pandemic as a moderating variable to compare before and after the situation. The samples of this study were Indonesian listed companies from 2018 to 2020 in Indonesia Stock Exchange. This study overcame self-potential selection bias and analyzed using Coarsened Exact Matching and Heckman's 2-Stage Least Square (Heckman 2-SLS). This study found that geographic proximity is significantly associated with the post-pandemic period, whereas geographic proximity did not cause problems before the pandemic. We also provided sufficient evidence of (Coarsened Exact Matching) CEM and Heckman 2-Stage Least Square which found that there were significant and appropriate results of our initial testing. The study implications relate to the auditor to consider pandemic as a factor that has effect on the audit fee.

Keywords: Audit in pandemic era; Audit quality; COVID-19; Corporate governance; Geographic proximity; Indonesia evidence; Non-discretionary accruals. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.conscientiabeam.com/index.php/73/article/view/3192/7093 (application/pdf)
https://archive.conscientiabeam.com/index.php/73/article/view/3192/7208 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pkp:hassle:v:10:y:2022:i:4:p:569-583:id:3192

Access Statistics for this article

More articles in Humanities and Social Sciences Letters from Conscientia Beam
Bibliographic data for series maintained by Dim Michael ().