| Big capital seems to be a problem for a company to develop their business. Some strategies are done to attract investors to invest their money into a certain company. Some ways to do it is the application of good corporate governance, management changes, election of reliable external auditor, and so on. In fact, some company sometimes doing inappropriate thing in order to deceive investors, so they will invest their money in the company. One of the most famous case and have made a big changes in global economic is Enron case. This case even involving one of the most famous accounting firm Arthur Andersen. It gives a learning lesson to investor so they would be more careful when investing their money in a company. Based on that fact, company nowadays are competing in applying good corporate governance, doing a more selective process in choosing accounting firm, and so on. These things were done so investors will have a faith that the financial report is already reflecting the real condition of company. This research is trying to investigate the correlation between corporate governance mechanism, and management changes on audit choice and also the correlation between corporate governance mechanism, management changes, and audit choice toward earnings response coefficient. The results show that number of board commissioner meetings and proportion of commissioner with accounting skill affect audit choice negatively, while proportion of independent commissioner and management change did not influence audit choice. Next, number of board commissioner meeting affect ERC positively, while proportion of independent commissioner, proportion of commissioner with accounting skill, management change, and audit choice did not influence ERC. |