The Effect of Audit and Service Qualities on Client Loyalty Through Client Satisfaction as Mediating Variable (Empirical Study of Public Accounting Firm in Bali)

Public Accountant Firm is a form of public accounting organization that obtains permits in accordance with the laws and regulations that seek to provide professional services in the practice of public accounting. As a business organization, Public Accountant Firm is engaged in a relatively competitive service sector. The increasing number of local Public Accountant Firm and foreign accountants in Indonesia makes competition more competitive. For companies that need auditing services, this provides an alternative to choosing or switching accounting firms. This situation encourages Public Accountant Firm to continuously strive to exceed client expectations so that clients become satisfied and loyalty will be created. The study was conducted on companies that were audit clients of the Public Accountant Office in Bali for the 2017 financial year using primary data obtained from the questionnaire. The method of determining the sample is convenience sampling and obtained 64 companies, using Path Analysis. The results showed that audit quality and service quality significantly influence client satisfaction. Audit quality, service quality and client satisfaction significantly influence client loyalty. Client satisfaction can fully mediate the influence of audit quality and service quality on client loyalty. Keywords: Audit Quality; Service Quality; Client Satisfaction and Client Loyalty