Influence of Audit Tenure and Size of Public Accounting Firm on Behavior of Integrity Financial Statements Integrity with the Committee Audit as Moderating Variable in Sub Companies Computer Services and Electronic Devices Sector

Abstract

Purpose of the Study: This study aims to examine the effect of audit tenure, the size of Public Accounting Firm (KAP) on the integrity of financial statements moderated by the audit committee of the computer services & other equipment sub-sector. Theoretical framework: The study is based on a review of the literature and make some reports confirmation from the field of this research, which is described in the article. Use all methods to retain personnel. Integrity of Public Accounting Officer must be researched whether it enhances Audit Tenure, audit committee, and Financial Reporting Quality. Design/methodology/approach: The sample selection technique used purposive sampling and obtained 7 sub-sector companies of computer & other equipment services listed on the Indonesia Stock Exchange (IDX) used in this study. This study uses a balance panel with 35 observations and estimates (common effect model). Findings: The results of this study found that the audit tenure variable has an effect on the integrity of the financial statements. Meanwhile, the size of the KAP has no effect on the integrity of the financial statements. Research, Practical & Social implications: Today, almost every organization is driven by technology, but human resources are needed to do work through technology. It is the challenge of an Public Accounting Officer to keep working for a long time for integrity in an organization in a dynamic environment. Originality/value: The value of the study reveals that, The auditor's task in this case is to examine the financial statements that have been made by the manager, and provide the final result in the form of an opinion on the fairness of the financial statements.