The weak corporate governance framework in Indonesia, as in other countries in Southeast Asia, was deemed a crucial factor in deepening the financial and economic crisis in the late 1990s. Over a decade after the 1997 Asian financial crisis, Indonesia and other Southeast Asian countries have made substantial governance reforms. The reform measures of the institutional framework, both in the public and corporate sectors, were intended to transform Indonesia into a clean, transparent, and accountable country. While the reforms have resulted in increased political stability, improved government effectiveness, and a more conducive investment climate, corruption remains a major concern in Indonesia. This study aims to evaluate how corporate governance mechanisms can reduce the opportunities for corruption. By utilizing agency theory, we argue that a strong corporate governance institutional framework helps to reduce a country's level of corruption. We focus attention on three components of corporate governance mechanisms, i.e., shareholder rights, the quality of the board of directors (BoD), and appropriate accounting and auditing standards, including transparency standards. In an attempt to strengthen corporate governance standards and practices in Indonesia, we conducted a comparative study among Southeast Asian middle-income countries, i.e., Indonesia, Malaysia, and Thailand. We rely on accessible secondary data such as corporate governance codes, laws, and regulations. Our study concludes that the Indonesian corporate governance institutional framework is less stringent compared to Malaysia and Thailand. This condition provides a favorable environment for corruption to persist because the standards and practices are less demanding and the companies do not necessarily have to comply with the existing regulatory framework.

The study aims to investigate the decoupling behavior wherein firms tend only to formally adopt written policies while avoiding implementing internal corporate governance mechanisms substantively. The analysis is focused on the area of the board's responsibility. The sample consists of 487 firm-year observations having the ASEAN Corporate Governance Scorecard (ACGS) for 2013-2017. Using institutional theory, the research finds that fifty-seven percent (279 out of 487 observations) in the sample show decoupling behavior. Decoupling behavior is more pronounced in large firms with lower performance and higher leverage. Furthermore, the financial (banking) industry is less likely to behave decoupling due to the industry's highly regulated and enforced nature.

Pandemi COVID-19 yang terjadi secara global pada awal tahun 2020 telah menyebabkan perubahan pada berbagai aspek termasuk pada pola kerja. Atas pertimbangan kondisi tersebut maka Internal Audit (IA) menerapkan pelaksanaan audit menggunakan metode remote audit. Tujuan penelitian adalah untuk menilai implementasi remote audit yang dilaksanakan oleh IA dengan menggunakan pendekatan standar International Professional Practices Framework (IPPF) yang dikeluarkan oleh Institute of Internal Auditors (IIA) selama masa pandemi. metode penelitian kualitatif dengan desain penelitian menggunakan studi deskriptif. Hasil dari penelitian adalah perlu adanya penyesuaian cara kerja pada remote audit, terdapat tantangan dalam pelaksanaan remote audit, implementasi remote audit tidak berpengaruh terhadap tingkat assurance dan kualitas audit, dan untuk kedepannya perlu adanya penyesuaian cara kerja untuk pelaksanaan hybrid audit pasca pandemi.

Users of financial statements may have higher expectations due to audit reports, which are thought to be of no informational value. Including essential information in the audit report will decide how it can be used because the "expectations gap"—the difference between what users expect and what the auditing profession believes—has risen dramatically over time. This study aims to analyze the readiness to implement Audit Standard SA 701 Key Audit Matters (KAM) at Division X KAP ABC (an Indonesian audit firm) and the auditors' understanding of KAM, including potential doubts regarding the classification of KAMs with other reporting standards such as SA 706 Emphasis of Matter and SA 570 Going Concern. The method of collecting data was through a questionnaire and semi-structured interviews with external auditors in charge at Division X KAP ABC. The questionnaire statements are taken from previous research of Hegazy and Kamareldawla based on paragraphs SA 701, SA 706, and SA 570, which consist of 26 statements. The analysis results conclude that the auditors understand the explanation of SA 701. However, there is potential for doubt in classifying a matter as the Emphasis of a Matter and Going Concern. Concerning the implementation readiness of KAM SA 701 in 2022, Division X KAP ABC has communicated and interacted more with its clients and conducted training and sharing sessions.

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