JEFMS Journal

Google Scholar

Article Pdf

---

ABSTRACT:

This study to analyze the influence of the positive Characteristics of the audit committee consisting of an independent audit committee, knowledge accountancy audit committee, number meeting audit committee, and size audit committee on quality reporting finance. Besides that For analyzing audit quality strengthening moderation between characteristics of the audit committee with quality reporting finance. Research This uses agency theory which emphasizes the conflict of interest between the principal and agent. Research This is a study associative with using secondary data from the Indonesia Stock Exchange (BEI) or via the company website of each sample. The sample collection technique sample uses method purposive sampling. Sample in study This is all over incoming companies The LQ 45 index is listed on the Indonesia Stock Exchange (IDX) with a total sample of 120 observations. For the test, the hypothesis used MRA analysis with the use of application data. The results of the research include the independent audit committee, knowledgeaccountancy audit committee, number meeting audit committee, and the number of influential audit committees for quality reporting finance. Companies that use Big Four auditors can strengthen the connection between the independent audit committee and knowledge accountancy audit committee on quality reporting finance whereas companies that use Big 4 auditors weaken the connection amount meeting audit committee and the amount audit committee on quality reporting finance.

KEYWORDS:

characteristicsaudit committee, quality reporting finance, audit quality

REFERENCES:

1) Akeju, JB and Babatunde, AA (2017), “Corporate governance and financial reporting quality in Nigeria”, International Journal of Information Research and Review, Vol. 4 No. 2, pp. 3750-3754.

2) Bedard, J. and Gendron, Y. (2010), "Strengthening the financial reporting system: can audit committees deliver?", International Journal of Auditing, Vol. 14 No. 2, pp. 174-210.

3) Biddle, G. C., Hilary, G., & Verdi, R. S. (2009). How does financial reporting quality relate to investment efficiency? Journal of Accounting and Economics, 48(2–3), 112–131. https://doi.org/10.1016/j.jacceco.2009.09.001

4) Bushman, R. M., & Piotroski, J. D. (2006). Financial reporting incentives for conservative accounting: The influence of legal and political institutions. Journal of Accounting and Economics, 42(1–2), 107–148. a. https://doi.org/10.1016/j.jacceco.2005.10.005

5) Farber,DF 2005. Restoring Trust after Fraud: Does Corporate Governance Matter? The Accounting Review,80(2),539-561.

6) Indonesia Stock Exchange. (2021). Announcement of submission of annual financial report . www.idx.co.id

7) Ha, J., & Feng, M. (2018). Conditional conservatism and labor investment efficiency. Journal of Contemporary Accounting & Economics, 14(2), 143–163. https://doi.org/10.1016/j.jcae.2018.05.002

8) Jensen, MC and HW Meckling. 1976. Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 305-360.

9) Jonas, G.J. and Blanchet, J.(2000), “Assessing the quality of financial reporting”, Accounting Horizons, Vol.14 No.3, p. 353.

10) Khalifa, M., Othman, H.B., & Hussainey, K. (2018). The effects of ex-ante and ex-post conservatism on the costs of equity capital: A quantile regression approach for MENA countries. Research in International Business and Finance, 44, 239–255. https://doi.org/10.1016/j.ribaf.2017.07.093

11) Leuz, C., & Verrecchia, R. E. (2000). The economic consequences of increased disclosure. Journal of Accounting Research, 38(3), 91–124. https://doi.org/10.2307/2672910

12) Myers, J.N., Myers, L.A., & Omer, T.C. (2003). Exploring the terms of the auditor-client relationship and the quality of earnings: A case for mandatory auditor rotation? Accounting Review, 78(3), 779–799. a. https://doi.org/10.2308/accr.2003.78.3.779

13) Okoye, EI and Ofoegbu, GN (2011), “The relevance of accounting and auditing standards in corporate financial reporting in Nigeria; emphasis on compliance”, available at: www.papers.ssrn.com/ sol3/ papers.cfm?abstract_id =1802365

14) Olowokure, O.A., Tanko, M. and Nyor, T. (2016), “Firm structural characteristics and financial reporting quality of listed deposit money banks in Nigeria”, International Business Research, Vol. 9 No. 1, pp. 106-123

15) Salvato, C., & Moores, K. (2010). Research on accounting in family firms: Past accomplishments and future challenges. Family Business Review, 23(3), 193–215. https://doi.org/10.1177/0894486510375069

16) Schipper, K., & Vincent, L. (2003). Earnings quality. Accounting Horizons, 17 (Supplement), 97–110. https://doi.org/10.2308/acch.2003.17.s-1.97

17) Wallace, P. and J. Zinkin. (2005). Mastering Business in Asia Corporate Governance. John Wiley & Sons (WZ)

18) Young, D., & Guenther, D. A. (2003). Financial reporting environments and international capital mobility. Journal of Accounting Research, 41(3), 553–579. https://doi.org/10.1111/1475-679X.00116