Journal of Management Research and Review (JMRR) · Research article · Open access
Firm Size, Firm Complexity, And Audit Fees in Financial Statement Restatement: The Moderating Role of Auditor Industry Specialization
Djihan Kania Putri, Andreas Tan, Supriono
6 October 2026 · Vol. 2, Issue 10, pp. 817-825
DOI: 10.65150/EP-jmrr/V2E10/2026-03
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What is this article about?
This study examines whether firm size, firm complexity, and audit fees are associated with financial statement restatement, and whether auditor industry specialization moderates the relationship between firm complexity and restatement. The study uses public companies in the industrial and infrastructure sectors listed on the Indonesia Stock Exchange during 2020–2024.
Article at a glance
- Published
- 6 October 2026
- Volume / issue / pages
- Vol. 2, Issue 10, pp. 817-825
- ISSN
- 3051-3588 (online) · 3051-357X (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
This study examines whether firm size, firm complexity, and audit fees are associated with financial statement restatement, and whether auditor industry specialization moderates the relationship between firm complexity and restatement. The study uses public companies in the industrial and infrastructure sectors listed on the Indonesia Stock Exchange during 2020–2024. Using purposive sampling, 73 firms were selected, producing 365 firm-year observations. Financial statement restatement is measured as a binary outcome, while firm size is measured by the natural logarithm of total assets, firm complexity by the number of subsidiaries, audit fees by the natural logarithm of disclosed audit fees, and auditor industry specialization by a market-share approach. Binary logistic regression is employed to test the hypotheses. The results show that firm size is significantly associated with financial statement restatement (B = 0.003; p = 0.018), as is firm complexity (B = 0.047; p = 0.033). Audit fees are not significantly associated with restatement (B = −0.002; p = 0.353). The interaction between firm complexity and auditor industry specialization is negative and statistically significant (B = −0.059; p = 0.011), indicating that higher levels of auditor industry specialization weaken the positive association between firm complexity and financial statement restatement. The findings suggest that the relationship between firm complexity and financial statement restatement varies with the level of auditor industry specialization, highlighting the relevance of industry-specific audit expertise in addressing risks associated with complex firms.
Keywords: Financial Statement Restatement, Firm Complexity, Firm Size, Audit Fees, Auditor Industry Specialization
Cite this article
Djihan Kania Putri, Andreas Tan, & Supriono (2026). Firm Size, Firm Complexity, And Audit Fees in Financial Statement Restatement: The Moderating Role of Auditor Industry Specialization. Journal of Management Research and Review, 2(10), 817-825. https://doi.org/10.65150/EP-jmrr/V2E10/2026-03
@article{Djihan2026,
title = {Firm Size, Firm Complexity, And Audit Fees in Financial Statement Restatement: The Moderating Role of Auditor Industry Specialization},
author = {Djihan Kania Putri and Andreas Tan and Supriono},
journal = {Journal of Management Research and Review},
year = {2026},
volume = {2},
number = {10},
pages = {817-825},
doi = {10.65150/EP-jmrr/V2E10/2026-03},
url = {https://doi.org/10.65150/EP-jmrr/V2E10/2026-03}
}Questions about this article
Who wrote this article?
Djihan Kania Putri, Andreas Tan, Supriono.
Where and when was it published?
In Journal of Management Research and Review, Volume 2, Issue 10, pages 817-825, published by EP Journals Group on 6 October 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jmrr/V2E10/2026-03 (https://doi.org/10.65150/EP-jmrr/V2E10/2026-03).
How do I cite this article?
APA: Djihan Kania Putri, Andreas Tan, & Supriono (2026). Firm Size, Firm Complexity, And Audit Fees in Financial Statement Restatement: The Moderating Role of Auditor Industry Specialization. Journal of Management Research and Review, 2(10), 817-825. https://doi.org/10.65150/EP-jmrr/V2E10/2026-03
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