Pengaruh Kualitas Komite Audit dan Ukuran Kantor Akuntan Publik terhadap Manajemen Laba

Abstract

<jats:p>This study aims to determine the effect of the quality of the audit committee and the size of the public accounting firm on earnings management. The audit committee uses the proxy size of the audit committee, the number of audit committee meetings, the independent audit committee and the expertise of the audit committee. This study uses secondary data, namely companies in the category of basic industrial and chemical manufacturing sectors listed on the Indonesia Stock Exchange (IDX). The sample used 16 companies with the period 2015-2017 through a purposive sampling method. The analytical method used is multiple regression. Based on the results of the study concluded that the independent audit committee has a positive effect on earnings management, but the size of the audit committee, the number of audit committee meetings, the expertise of the audit committee, and the size of the public accounting firm have no influence on earnings management.</jats:p>

Determinant of earnings management practices in manufacturing companies

“…This was proven by the coefficient value of -3.286184 (-328%), indicating that when the number of independent commissioners increases, it will reduce earnings management carried out by companies that, on average, engage in positive earnings management. These findings align with research (Alfiyasahra & Challen, 2020;Handriani, 2020) but oppose the research results of (Arifin & Destriana, 2016).…”

“…From the results of the review, it can produce a report that the principal will later use for company decision-making. These results corroborate with research conducted by Alfiyasahra and Challen (2020). this differs from previous research conducted by Handriani (2020), which revealed that independent audit committees did not affect earnings management.…”

“…This is in line with previous research (Badolato et al 2014;Handriani 2020;Rinta, 2021;Sofia & Dasmaran, 2021). However, this differs from previous research (Alfiyasahra & Challen, 2020;Ulina et al, 2018). Due to the extensive skills of audit committee members in supervising management, audit committee size may inhibit opportunistic earnings management.…”

“…This was verified by the coefficient value of -3.796023 (379%), indicating that when the number of audit committee experts increases, it will reduce earnings management carried out by companies that, on average, carry out positive earnings management. This aligns with previous research (Abernathy et al 2015;Handriani, 2020) but opposed the research results of (Alfiyasahra & Challen, 2020;Putri & NR, 2019). This finding signifies that the audit committee tends to be conservative as a corporate mechanism.…”

“…This finding aligns with prior investigations (Ichsany & Husain, 2019;Khairunnisa et al, 2020;Rinta, 2021). In contrast, prior investigations (Alfiyasahra & Challen, 2020;Handriani 2020;Ulina et al, 2018) have established that the activities of audit committees had no discernible impact on earnings management practices.…”