The Effect of Good Corporate Governance and Internal Audit Implementation of Quality of Financial Statement through Intellectual Capital in Pt Jakarta Tourisindo

Abstract

This study aims to: 1) test and analyze the effect of the implementation of good corporate governance influence intellectual capital at PT Jakarta Tourisindo, 2) test and analyze the effect of internal audit on intellectual capital at PT Jakarta Tourisindo, 3) test and analyze the effect of the application of good corporate governance affect the quality of financial statements at PT Jakarta Tourisindo, 4) test and analyze the effect of internal audit affect the quality of financial statements at PT Jakarta Tourisindo, 5) test and analyze the effect of intellectual capital affect the quality of financial statements at PT Jakarta Tourisindo and 6) test and analyze the effect of the implementation of good corporate governance and internal audit affect the quality of reports through intellectual capital at PT Jakarta Tourisindo.
 The study was conducted at PT Jakarta Tourisindo with a sample of 100 respondents. The sampling technique uses a random sampling technique. The method of data analysis uses descriptive analysis and path analysis.
 The results showed that: 1) there was a positive and significant effect between good corporate governance on intellectual capital, 2) there was a positive and significant effect between internal audit on intellectual capital, 3) there was a positive and significant effect between the application of good corporate governance on the quality of financial statements, 4) there is no positive and significant influence between internal audit on the quality of financial statements, 5) there is no positive and significant influence between intellectual capital on the quality of financial statements, and 6) there is a positive and significant effect between good corporate governance and internal audit on quality financial statements through intellectual capital.

Factors Affecting Banking Fraud Prevention and Their Impact On The Quality of Financial Statements

“…The more effectively corporate governance principles are applied, the higher the quality of financial reports, whereby banking companies can produce timely and accurate financial reports using material, relevant, and non-confidential information, with the goal of maintaining objectivity in conducting business transparently and presenting financial reports that are understandable, relevant, reliable, and comparable. The results of this study are in line with previous studies which states that good corporate governance has a positive effect on the quality of financial reports (Fuadah & Setiyawati, 2020;Herdiyopie et al, 2020;Mulyanti & Rahma, 2020). Fraud prevention has a considerable positive impact on the quality of financial statements.…”

“…However, good corporate governance has no effect on fraud prevention (in fact, it has a negative effect) (Hartanto et al, 2019). Meanwhile, the effect of good corporate governance principles on the quality of financial reporting has been studied by previous studies that states that good corporate governance has a beneficial effect on the financial reporting quality (Fuadah & Setiyawati, 2020;Herdiyopie et al, 2020;Mulyanti & Rahma, 2020). Whereas the objective of good corporate governance is to retain objectivity in operating a transparent organization in order to present timely and accurate financial reports based on material, relevant, and non-confidential information.…”

“…Whereas, internal control system has no effect on the financial reporting quality (Nurlis & Yudiati, 2017). The objective of implementing good corporate governance principles is to retain objectivity while operating a transparent organization in order to present timely and accurate financial reports based on material, relevant, and non-confidential information states that good corporate governance has a positive effect on the quality of financial reports (Fuadah & Setiyawati, 2020;Herdiyopie et al, 2020;Mulyanti & Rahma, 2020). Financial reports are considered to be of high quality if they meet numerous standards/characteristics, including being understandable, relevant, reliable, and comparable.…”