Abstract
This study aims to analyze the effect of institutional ownership and audit committee on audit quality with financial difficulties as a moderation. This research was conducted on Manufacturing Companies in the Consumer and Industrial Goods Sector Listed on the Indonesia Stock Exchange for 2016-2020. The quantitative research method uses secondary data, namely the company's annual report that is the object of research. Analysis of the data used is logistic regression analysis. The results show that the direction of the influence of the institutional ownership variable on audit quality is positive, where institutional ownership has a significant effect on audit quality. Likewise, the direction of the impact of the audit committee on audit quality is positive but does not significantly affect audit quality. The results of the moderation show that Financial Distress can moderate institutional ownership in influencing audit quality. In contrast, after being moderated with the financial distress variable, the audit committee has a negative and significant direction, which means it can moderate the audit committee in influencing audit quality but in the opposite direction.
Highlights
Several factors are considered to influence auditThe audit is one way to find out the company's quality, one of which is Corporate Governance
Board of Directors of the Indonesia Stock Exchange (IDX), distress is when the company is unable to pay its obligations, every company that sells its shares on the Indonesia Stock which will increase costs so that the company cannot maintain
External factors arise from outside the carried out critically and systematically, by an independent corporation, which can be related to operations or even party, on financial statements prepared by management, along macroeconomic aspects, while internal factors are aspects that with accounting records and supporting evidence, to provide arise from the internal of the corporation
Summary
The audit is one way to find out the company's quality, one of which is Corporate Governance. Kristanti (2019) states that financial difficulties are According to Arens (2015), audit quality is how an situations where a company can no longer pay its obligations auditor detects material misstatements in the financial on its payment schedule. The level of trust of users of technique for analyzing financial distress is the Discriminant financial information on auditor efficiency in reducing material Multivariate analysis This multivariate statistical technique is misstatements in financial reporting is reached through used to predict and estimate the failure of a company known as perceived quality (Husnin, Nawawi, & Salin, 2016). As well as the moderating variable, it is described as follows: https://ijbassnet.com/
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