Pengaruh Independensi dan Efektivitas Komite Audit terhadap Kualitas Labs

The purpose of this studv is to examine the characteristic of audit committee influence to earning quality. Blue Ribbon Committee (BRC) on Improving the Effectiveness ofCorporate Audit Committee (1999) argued that an audit committees would enhance financial reporting process. The BRC report raised the awareness of certain attributes of audit committee members as particularly important, specificallyfinancial literacy, meetingfrequency, commit sufficient time to the committee andabove all independence (BRC, 1999). The threefirst attribute is the effectiveness ofaudit committee. This study is carried out by doing content analysis on annual report corporation especially corporate governance report, and is analyzed by regression. Earning quality used in this study are earning informativeness and earning transparency. Earning informativeness is measured by Earning Response Coefficient (ERC) and earning transparency is measured by using degree of mispricing (overpricing) of accruals. The result of this study provides evidence that earning response coefficient will increase by the presence an audit committee members are independent andfinancially literate . While, the overpricing of accrual will be lower when the audit committee members are independent, financially literate and meet regularly. There is no evidence that independency has bigger influence on earning quality than audit committee effectiveness. Overall, these result provides evidence that independent and effective audit committees enhance the quality of reported earnings. Keywords : Audit committee, corporate governance, earning quality, earning response coefficient, mispricing (overpricing) ofaccrual

The Influence of Audit Committee to Earnings Management

The role of the audit committee continues to be of importance to regulators. The New York Stock Exchange (NYSE) and the National Association of Securities Dealers (NASD) co-sponsored a Blue Ribbon Committee (BRC) to make recommendations for improving the effectiveness of the audit committee. In Indonesia, the Jakarta Stock Exchange (JSX) issued a regulation in 2001. The regulation emphasize all companies (which treaded publicly) must have audit committee. On the basis of the regulation, existing audit committee is expected to be able to restrict earnings management. According to Millstein (1999), it is totally consistent that good corporate governance practice points to the audit committee as the focal point for improvement in financial statements. This study investigates whether audit committee formation can reduce earnings management. Data is collected from JSX in 2001 and 2002 for manufacturing companies. Using independent sample t-test, the result suggests that audit committee can reduce earnings management. </p

PENGARUH KARAKTERISTIK KOMITE AUDIT TERHADAP KUALITAS LABA

The aim of the research is to investigate the influence of audit committee characteristics on earnings quality. Independent variables on this research included size of audit committee, independence of audit committee, number of meetings of audit committee, and tenure of audit committee. While the dependent variable is earnings quality. This research also used 2 control variables included company size and company leverage. This research is a quantitative research using secondary data such as data in the annual report which are manually taken through official site of Bursa Efek Indonesia. Population of this research is the whole 136 manufacturing companies listed on Bursa Efek Indonesia constanly or successively along 2014 – 2016. Then 74 companies are selected to match the criteria. This research uses linear regression analysis method for hypothesis testing. The results showed that audit committee size and audit committee independence are have no effect on earnings quality. Number of meetings has positive effect on earnings quality, which frequently meetings can solve companies problems fastly. While audit committee tenure has negative effect on earnings quality, which someone who officiate in long time as a audit committee on a certain company knowing some opportunities in a company to doing earnings management practices

ADHERENCE TO THE 1999 BLUE RIBBON COMMITTEE GUIDELINES AND DIVIDEND PAYOUT POLICY: EVIDENCE FROM KUWAIT

The objective of this research is to eamine the adherence to the Blue Ribbon Committee BC recommendations and its impact on corporate dividends policy in Kuwait. These recommendations are deemed guidelines for improving the effectiveness of audit committees of shareholding firms. Both descriptive as ell as analytical methods have been used to test for such effectiveness. Ashort questionnaire as distributed to listed firms in Kuwait as well as examining published financial data of Kuwait firms with respect to dividend policies during . Results of the multiple regressions and sensitivity analysis indicated that there is no significant evidence on compliance with BRC guidelines hen setting dividend policies by Kuwaiti firms, thus hardly any effect audit committees have on such policies

Effect of board of Commissionersand Audit Committee on the Firm Value with Mediating Effect Financial Reporting Quality

This study aims to examine and analyze; (1) the influence of board of Commissioners and audit committee on the financial reportingquality, (2) the influence of board of Commissioners and audit committee on the firm value, (3) the influence of financial reporting quality onthe firm value, and (4) the indirect influence of board of Commissioners and audit committee onfirm value through thefinancial reporting quality. This research uses explanatory research method and type of research is verification. The types of data used are primary and secondary data and the scale interval and ratio are used as measurement scale. Data collection was using survey techniques with the distribution of a questionnaire on nationalcommercial banking listed at the Indonesia Stock Exchange and using the Price to Book Value of data obtained from the Website Yahoo.finance.com, while observation unitsin this study are BOC / Independent Commissioner, Audit Committee and Accounting Manager / Accounting Section. Validity and reliability tests were conducted on the collected questionnairesand the next ordinal scale data is converted into an interval scale. The data were analyzed with descriptive statistics by employing the average (mean) and inferential statistics by using SEM-PLS.   The results showed that: (1) The board of commissionersand audit committee have significant positive effect on the financial reporting quality, (2) The board of commissioners and audit committee have significant positive effect on the firm value, (3) financial reporting quality has significant positive effect on the firm value, and (4) the financial reporting quality mediates the positive effect of board of commissioners and audit committee on the firm value. Keywords: Board of Commissioners, Audit Committee, Financial Reporting Quality, Firm Valu

The Effect of Audit Committee Characteristics on Earnings Management and its Impact on Firm Value

This study aims to examine the effect of audit committee characteristics on earning management and its impact on Firm Value. The characteristics of the audit committee consist of an audit committee that has expertise in industry and accounting, has expertise in industry and financial supervisors, the number of meetings of the audit committee members, and an independent audit committee. Earning management research is very important to research to provide input regarding the factors that cause companies to mark up earnings and their impact on firm value. This study uses a quantitative method with a sample of manufacturing companies listed on the Indonesia Stock Exchange for the period 2016-2018. The results show that the expertise of the audit committee in industry and accounting has no effect on earnings management, the expertise of the audit committee in the industry and the financial supervisors has no effect on earnings management. The number of meetings of the audit committee members has no effect on earnings management. The independent audit committee has no effect on earnings management. Earning Management has a significant negative effect on firm value

The Relationship between Audit Committee Characteristics and Earnings Management among Jordanian Listed Companies: Proposing Conceptual Framework

In a capital market where financial reports are a key feature of communication with respect to public firms’ performance and financial position, as is well known, one of the objectives of a company’s corporate governance system is to ensure the quality of that company’s financial reporting. Accounting earnings are more reliable and of higher quality when managers’ opportunistic behavior is reduced using monitoring systems. One specific area of concern is the monitoring function of the audit committee on earnings management. This paper proposes a conceptual framework that investigates the role of audit committee characteristics (independence, size, activity, and financial expertise) on earnings management using a sample of all industrial companies listed on the Amman Stock Exchange (ASE). Evidence from prior studies suggested that audit committee takes over the board function to oversee the firm’s financial reporting process. The audit committee’s role vital in monitoring the company’s operation and internal control system with the aim of protecting the interest of the shareholders. In regards to earnings management, this paper views earnings management as opportunistic earnings. The current study argues that the firms with effective characteristics of audit committee are less likely to allow earnings management because opportunistic earning's cause uncertainty about the economic value of a firm. Keywords: Audit committee characteristics, earnings management, financial reporting quality, Jordan

Pengaruh Karakteristik Komite Audit Dan Perusahaan Terhadap Kecurangan Pelaporan Keuangan

This study aimed to examine the effect of audit committee and firm characteristics against thepossibility of fraudulent financial reporting. Audit committee characteristics examined by anindependent audit committee, audit committee financial expertise, audit committee meetingsand tenure of the audit committee. Then, firm characteristics examined its effect on financialreporting fraud is managerial ownership, corporate leverage, firm size and growth rate of thecompany. The research was conducted by quantitative methods using secondary data. Secondarydata comes from a list of cases Bapepam-LK and the company's annual report listed on theIndonesian Stock Exchange. This research population is company listed on the Indonesian StockExchange, and then the samples were taken by purposive sampling with criteria non-financialcompany and have the required data in this study. At last, total sample are 40 companies, thatcomprised into 20 companies with commit fraud financial reporting and 20 companies withdid not commit fraud in financial reporting with the same industry and size of company assets.This study uses logistic regression statistical tools because the dependent variable was dummyvariable (non metric), while the independent variable was metric and non metric variable.Theresults showed that the characteristics of audit committees (audit committee financial expertiseand tenure of the audit committee) have a negative impact on financial reporting fraud, while thefirm characteristics (managerial ownership and firm size) has a positive influence on financialreporting fraud. Furthermore, the other firm characteristics (growth companies) negatively affectthe financial reporting fraud

Audit committee financial expertise and audit report lag: Malaysia further insight

Recent audit and financial reporting quality research suggest that audit committee financial expertise is a crucial ingredient for high quality financial reports. However, Malaysian literature has reported no association between audit committee financial expertise and audit report timeliness. Using audit report lag, we examined whether Malaysian audit committee financial expertise is relevant for financial reporting timeliness. Using data from 2005 to 2011 from the top 100 Malaysian companies and the fixed effects panel data approach, we find that audit committee financial expertise is not significantly associated with audit report lag proxies. We further examined this issue with the basic premise that audit committee independence enhances the role of audit committee financial expertise. However, the interaction between these mechanisms shows an insignificant association. Additional investigation reveals that these results are driven by the lack of independence on Malaysian boards. We also find evidence suggesting that neither a large number of subsidiaries nor the quality of financial reporting sufficiently justify the recent Malaysian reforms relating to the financial reporting timeframe

Audit Committees and Bank Governance: the Case of Tunisian Banks

This paper examines the impact of setting up new audit committees in Tunisian banks on their corporate governance. Specifically studied were the effects of the establishment of audit committees on boards of directors' effectiveness, internal auditor independence, external auditor effort, and internal control and financial reporting quality. The interview and survey methods were used to collect data from board members and the internal and external auditors of eight Tunisian banks shortly after they introduced audit committees on their boards. The main findings show that the establishment of new audit committees influences the breadth of the directors' discussions during board meetings. In some of the banks studied, the new audit committees improve the internal auditors' independence from top management, internal controls and financial reporting quality, and/or result in less effort by external auditors. Some of the interviewed external auditors view the new audit committees as a valuable governance mechanism, especially in cases of disagreement with management