The Integrity Of Financial Statements: Firm Size, Independent Commissioners, And Auditor Industry Specializations

Abstract

This research aims to determine the effects of firm size, independent commissioners, and auditor industry specialization on the integrity of financial statements. This research was conducted in the insurance sub-sector companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2020. This research uses a quantitative method by obtaining 50 sample data from 10 companies. The data in this research was analyzed using descriptive statistical analysis and panel data regression analysis using Eviews 10 software. From the result of this research, it is found that company size, independent commissioner, and auditor industry specialization simultaneously affect the integrity of the financial statements. Partially, firm size affects the integrity of the financial statements, while independent commissioners and auditor industry specialization do not affect the integrity of the financial statements. The result of this research can be used by the companies to increase the integrity of the financial statements by looking at the firm size that is related to companies’ total assets as well as is additional information for further researchers who conduct relevant research.