International Journal of Research & Review (www.ijrrjournal.com) 134 Vol.6; Issue: 1; January 2019 International Journal of Research and Review www.ijrrjournal.com E-ISSN: 2349-9788; P-ISSN: 2454-2237 Research Paper Analysis of Factors Affecting the Substitution of Public Accounting Firm (PAF) in Property and Real Estate Companies Listed on the Indonesia Stock Exchange (IDX) Rizki Syahputra, Dr. Iskandar Muda, Dr. Syafruddin Ginting Universitas Sumatera Utara Corresponding Author: Rizki Syahputra ABSTRACT The aim of this study was to examine and analyze the influence of factors such as the size of the Public AccountingFirm (PAF), management substitution, audit opinion, leverage, ROA percentage change, client size, company growth, and institutional ownership partially and simultaneously on the change of PAF. This study was conducted by using associative research which used secondary data. The populations in this study were all Property and Real Estate Companies listed on the Indonesia Stock Exchange in 2010-2014 which amounted to 54 companies. By purposive sampling, sample met the criteria in this study were 42 companies totaling 210 observations. The data was processed using logistic regression test with the testing grounds of the dummy variables. The results of this study proved that the partiallyPAF sizeand institutional ownership had significant effects on the substitution of PAF, meanwhile the management substitution, audit opinion, leverage, percentage of change in ROA, client size, and company growth had no significant effects on the substitution of PAF. Simultaneously, the PAF size, management substitution, audit opinion, leverage, ROA percentage change, client size, company growth, and institutional ownership did not significantly influence the PAF substitution. Keywords: PAFSize, Substitution Management, Leverage, Percentage of Change in ROA, Client Size, Growth Company, Institutional Ownership, PAF Substitution I. INTRODUCTION The development of the Public Accountant is so rapid, especially in conducting audits of the company's financial statements. Various ways are carried out by several Public Accountants to provide convenience to clients, so that clients continue to use their audit services. Too much comfort can also reduce the independence of the Public Accountant, by following the wishes of the client. Under pressure to restore public confidence, the congress passed the Public Company Accounting Reform Act and Sarbanes-Oxley Investor Protection in July 2002. Similar to the effects of the Securities Act in 1933 and 1934, the Sarbanes-Oxley Act began with a broad reform process in practice Corporate governance will be the duty and practice of public companies, financial analysts, external auditors, and stock exchanges (Messier et al., 2006, p. 41). Due to the importance of the independence of the Auditor in a PAF to clients and the occurrence of PAF Arthur Anderson and PAO Hans Tuanakotta & Mustofa (HTM) made the issuance of