Audit Committee Effectiveness Research Articles

Does audit quality, managerial reports, audit committee affect financial report quality? Case of companies listed on Jakarta Islamic Index (JII) 2018-2020

This study aims to examine the effect of audit quality, managerial reports and audit committees on financial reports quality in companies listed on the Jakarta Islamic Index (JII) in 2018-2020. This type of research is quantitative with multiple linear regression. The data used is secondary data in the form of consolidated reports. The samples of this study consisted of 36 companies listed on the Jakarta Islamic Index (JII) in 2018-2020. The results of this study indicate that audit quality has a significant positive effect on the financial reporting quality, managerial reports have a significant negative effect on financial reporting quality and audit committee has a positive but not significant effect on financial reporting quality quality.

Analisis Faktor-Faktor Yang Mempengaruhi Audit Delay (Studi Empiris pada Perusahaan LQ45)

The purpose of this study is to analyze the effect of leverage, KAP reputation, audit committee, and complexity of operations, on audit delay. The population used in this study is LQ45 companies listed on the Indonesia Stock Exchange for 2016-2018, the sample was taken using purposive sampling with 84 observations. The analysis technique used in this research is multiple linear regression. The results showed that leverage had a negative effect on audit delay while the reputation of KAP, audit committee, operating complexity had no effect on audit delay.
 Keywords: Leverage; KAP Reputation; Audit Committee; Operation Complexity; Audit Delay

The Effect of Corporate Governance on Tax Avoidance: Empirical Evidence of the Consumer Goods Industry Sector

The aims of this reseach to determine the effect of institutional ownership, audit committee, audit quality, and independent board of commissioners on tax avoidance in manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange in 2017-2019. The method used in this research is quantitative. The sampling technique used random sampling method, based on the established criteria obtained a sample of 33 companies. The results of research on institutional ownership, audit committee, audit quality and independent board of commissioners have no partial effect on tax avoidance.

The Effect of Non-Financial Factors on Firm Value with Tax Aggressiveness as Moderating

There are still many problems with company value in Indonesia. This study aims to analyze the effect of non-financial factors on firm value. In addition, this study also examines tax aggressiveness as moderating the influence of non-financial factors on firm value. The sample used in this study is a real estate company listed on the Indonesia Stock Exchange for the period 2018 – 2020. The analytical method used is multiple linear regression, including classical assumption test, coefficient of determination test, hypothesis testing and moderate regression analysis. Statistical tool used by using Statistical Product and Service Solution Version 23. The audit committee has a positive and significant effect on firm value. Meanwhile, the independent commissioner and family ownership variables have no significant effect on firm value. Moderation test proves that tax aggressiveness cannot moderate the effect of independent commissioners, audit committees and family ownership on firm value.

Audit committee and impression management in financial annual reports: evidence from Jordan

PurposeThe current paper aims at exploring the audit committee characteristics’ effect on impression management.Design/methodology/approachThe methodology is based on the use of the content analysis of financial annual reports, as data of a 69-company sample study from 2015 to 2019 attained from “Amman Stock Exchange” has been analyzed. Moreover, multiple regression analysis on panel data was employed.FindingsThe results show that the independence of the audit committee, the financial expertise of the audit committee and female members negatively affect impression management, implying that these characteristics mitigate financial reporting manipulation and decrease the practices of impression management. However, the findings detect no significant influence for committee meetings on impression management.Research limitations/implicationsNotably, the current work is applicable and useful for understanding the audit committee’s role in enhancing the financial reporting’s quality, along with the significance of the audit committee in growing the stakeholder’s confidence in financial reporting. In light of these results, regulatory bodies’ efforts are encouraged to create additional strategies and instructions to ensure the trustiness and credibility of financial reporting.Originality/valueThis paper will be useful to companies that want to improve the quality of financial reporting and decrease the impression of management’s effect on financial reporting’s readers. Moreover, this paper contributes to the literature on impression management by exploring the effect of audit committees on impression management of annual financial reports of the users in the context of emerging markets and Middle East countries, particularly Jordan.

PENGARUH UKURAN PERUSAHAAN DAN KOMITE AUDIT TERHADAP TAX AVOIDANCE PADA BANK UMUM SYARIAH DI INDONESIA PERIODE 2016-2020

The purpose of this study was to determine the effect of firm size and audit committee on tax avoidance. In this study, tax avoidance is measured using the Effective Tax Rate (ETR), which is the tax burden divided by profit before tax. The sample in this study was Islamic commercial banks in Indonesia for the 2016-2020 period, which amounted to 7 banks with a period of 5 years resulting in 35 data. The method used is quantitative and sampling using purposive sampling technique. The analysis technique used is multiple linear regression analysis. The results showed that the size of the company and the audit committee had no effect on tax avoidance.

THE ROLE OF AUDIT COMMITTEE EFFECTIVENESS IN ENHANCING TIMELINESS OF CORPORATE FINANCIAL REPORTING IN THE NIGERIAN INSURANCE INDUSTRY

This study investigated the impact of audit committee effectiveness on financial reporting timeliness in the Nigerian insurance industry. The study employed secondary data for the years 2012 - 2020. Hypotheses were tested using the Ordinary Least Square (OLS) method. The results revealed a significant relationship between timely financial reporting and audit committee size, expertise, and diligence. There was a negative but insignificant association between audit committee independence and financial reporting. The study concluded and recommended that audit committee effectiveness affects financial reporting timeliness in the insurance industry and that firms should increase the size and meeting frequency of the committee.

The Impact of Audit Committee Structure on Capital Structure: A Case of Omani Listed Companies

Financial scandals have diverted the attention of investors, shareholders, lenders, and different stakeholders toward the corporate governance mechanism. Under the corporate governance system, the conflicts between different stakeholders are managed and controlled. Several variables work as proxies of corporate governance systems. The audit committee structure is an important tool to mitigate the adverse effects of agency problems. This study focuses on the impact of audit committee characteristics on the capital structure. The main purpose of this study is to examine the relationship between audit committee effectiveness and the leverage of the firms. Three proxies of audit committee (AC) structure are used such as AC meeting frequency, AC size, and AC independence, whereas leverage ratio is used to reflect capital structure. The study is conducted on the listed companies in the Sultanate of Oman for the period 2016 to 2019. The result of the study shows a significant negative relationship between AC meeting frequency and AC size with leverage. Whereas AC independence does not show any association with leverage in the case of Omani-listed firms. The result confirms the agency theory notion that the corporate governance system is an effective tool to balance the interest of different stakeholders and control the leverage of the firm. This study provides valuable findings to regulatory bodies and decision-makers to keep the balance capital structure through an effective audit committee structure.

Faktor-Faktor Yang Mempengaruhi Nilai Perusahaan Dengan Kinerja Perusahaan Sebagai Variabel Mediasi

This study was conducted to examine the effect of family ownership, independent board of commissioners, audit committee, and managerial ownership on firm value with firm performance as a mediating variable in listed manufacturing companies in Indonesian Stock Exchange (IDX) period 2017-2019. Sample was selected using purposive sampling method and consist of 45 companies. This study used Partial Least Squares (PLS-SEM) method and helped by SmartPLS 3.0 software. The results of this study indicate that family ownership, independent board of commissioners, and audit committee have no effect on firm value, while managerial ownership has a significant negative effect on firm value. This study proves that firm performance can mediate the effect of the independent board of commissioners on firm value, but it cannot mediate the effect of family ownership, audit committee, and managerial ownership.

Analysis of the influence of audit characteristics, company characteristics, and audit committe on auditor replacement in companies listed on the Indonesia Stock Exchange

This research was conducted with the aim of analyzing the effect of audit characteristics, company characteristics and audit committee on auditor turnover. The sample of companies used in this study were 453 companies listed on the Indonesia Stock Exchange from 2015 to 2019. The audit characteristic classification variables are auditor reputation and audit opinion. The variables for categorizing company characteristics are financial distress, change of management, and leverage. The data obtained were then processed using the SPSS program. The results showed that the auditor's reputation and profitability had a significant effect on auditor switching, while financial difficulties, management changes, audit opinion, audit committee, and leverage had no significant effect on auditor switching

ANALISA FAKTOR YANG MEMPENGARUHI AUDIT DELAY PADA PERUSAHAAN PERTAMBANGAN PERIODE 2017-2021

This study aims to analyze the effect of profitability, leverage and audit committee on audit delay. This research was conducted on mining companies listed on the Indonesia Stock Exchange (IDX) for the 2017-2021 period. The sample in this study was obtained by using a purposive sampling method, namely the sampling technique based on certain criteria. The results of this study conclude that (1) profitability has a negative effect on audit delay, (2) leverage has a positive effect on audit delay, while (3) audit committee has a negative effect on audit delay.

Pengaruh Corporate Governance, Leverage, Ukuran Perusahaan dan Likuiditas terhadap Tax Avoidance (Penghindaran Pajak)

This study was conducted with the aim of testing and analyzing the effect of institutional ownership, managerial ownership, independent commissioner, audit committee, leverage, company size and liquidity on the occurrence of tax avoidance which is officially listed on the Indonesia Stock Exchange (IDX) in 2016-2019. The population used is manufacturing companies that are officially listed on the Indonesia Stock Exchange (IDX) in 2016 to 2019 as many as 76 samples. Sampling in this study using purposive sampling. The analytical tool used is multiple linear regression test. The results of the study concluded that, managerial ownership and liquidity have a significant effect on tax avoidance. Meanwhile, institutional ownership, independent commissioner, audit committee, leverage and company size have no significant effect on tax avoidance.

Pengaruh Komite Audit, Kepemilikan Keluarga Terhadap Penghindaran Pajak Pada Perusahaan Manufaktur Yang Terdaftar Di BEI Periode 2017-2019

This study aimed to examine the effect of audit committee, family ownership on tax avoidance by focusing on manufacturing companies Iisted in the lndonesia Stock Exchange in the period 2017-2019. Tax avoidance is a dependent variable, while audit committee, and family ownership is independent variables. The sampling method used was purposive sampling with a sample of 47 companies during the observation period of 3 years in a row to produce a total of 141 samples. The analysis technique used in this research is multiple Iinear regression analysis. Data were analyzed using SPSS 22 version. The results of this study indicate that audit committee does not effect tax avoidance, family ownership has an effect on tax avoidance.

Pengaruh Efektivitas Komite Audit dan Penghindaran Pajak: Peran Moderasi Kualitas Audit

As a component of corporate governance, the audit committee and external auditors have functions as independent supervisors on financial reports, risk management and overseeing the company's compliance with laws and regulations. This study examines the relationship between the effectiveness of the audit committee on corporate tax avoidance and the moderating role of audit quality. Using purposive sampling technique, this study tested 215 manufacturing companies for the period 2019-2021 using multiple linear regression analysis techniques. This study shows the results that an effective audit committee along with audit quality can reduce corporate tax avoidance activities.
 Keywords: Effective Audit Committee; Audit Quality; Tax Avoidance.

The Effect of Audit Opinion and Audit Committee on Audit Delay with The Reputation of The KAP as Moderating

This study aims to determine whether the Audit Opinion and the Audit Committee will affect the Audit Delay. And whether the KAP's reputation is able to moderate the Audit and Audit Committee's Opinion on Audit Delay. This study also involves independent variables, namely Audit Opinion and the Audit Committee. And also involves a moderating variable, namely the reputation of the hood. The type of research used in this research is associative research with a quantitative approach. The data collection technique in this study is secondary data with data collection methods, namely documentation. The study was conducted on 40 property and real estate sector companies listed on the Indonesia Stock Exchange in 2016-2020. Based on the test results, it proves that the Audit Opinion and the Audit Committee have a simultaneous effect on Audit Delay. This study also proves that audit opinion can affect audit delay, while audit committee has no effect on audit delay. This study also shows the results that the reputation of the company is able to moderate audit opinion on audit delays. The reputation of the KAP is not able to moderate the influence of the audit committee on the audit delay.

Effect of Corporate Governance on Financial Statement Quality of Listed Deposit Money Banks in Nigeria

This study examined the effect of corporate governance on financial statement quality of listed deposit money banks in Nigeria. The study specifically examined the effect of board independence and audit committee on financial statement quality of listed deposit money banks in Makurdi, Benue State. of listed deposit money banks in Makurdi, Benue State. The study adopted the cross-sectional survey design involving 86 management staff of 15 of listed deposit money banks in Makurdi, Benue State. The study employed questionnaire as the major instrument for data collection. Result of the pilot study conducted showed that the reliability for each of the constructs was above 0.70. Regression analysis was used in testing the data gathered from the survey. Analysis was done with the aid of Statistical Package for Social Sciences (SPSS 23). Findings revealed that board independence and audit committee have significant positive effect on financial statement quality of listed deposit money banks in Makurdi, Benue State. The study concludes that dimensions of corporate governance are statistically significant in explaining the quality of financial statements of listed deposit money banks in Makurdi, Benue State. The study recommended that directors and managers of listed deposit money banks should be made by law to own certain minimum percentage of shares due to the fact that an increase in managerial ownership will increase financial statement quality. Again we recommend that small audit firms when and if engaged by the of listed deposit money banks in Nigeria for audit work should not compromise the level of disclosure out of fear of losing the contracts.

The Effect of Independent Commissioners, Audit Committee, Audit Quality, and Leverage on Financial Statements Integrity with Firm Size as a Moderating Variable in Banking Companies Listed on the Indonesia Stock Exchange

A financial statement's integrity is the extent to which the financial statements presented show accurate and honest information. The research objective was to analyze the effect of the independent commissioners, audit committee, audit quality, and leverage on financial statement integrity in banking companies listed on the Indonesia Stock Exchange. This study will also examine firm size variables used as moderating variables in the research model. The population in this research are banking companies listed on the Indonesia Stock Exchange period 2015 to 2019. The method used in determining the sample is a purposive sampling method based on specific criteria and selected as many as 31 companies. The total of observations used was 155 observations. The type of data used is secondary data. Data analysis techniques used are Panel data regression analysis with multiple regression test and moderating interaction Test with the help of Eviews. The results of this study indicate in alpha five percent (0.5%), audit committee, audit quality, and leverage have a significant positive effect on financial statement integrity. In contrast, independent commissioners have no significant effect on financial statement integrity. The results of this study also show that firm size can moderate the impact of the audit committee and audit quality on financial statement integrity. However, firm size cannot moderate the effect of independent commissioners and leverage financial statement integrity. Keywords: Independent Commissioners, Audit Committee, Audit Quality, Leverage, Financial Statement Integrity.

PENGARUH KOMISARIS INDEPENDEN, KOMITE AUDIT, KUALITAS AUDIT DAN CAPITAL INTENSITY TERHADAP TAX AVOIDANCE DENGAN KARAKTER EKSEKUTIF SEBAGAI VARIABEL MODERASI PADA PERUSAHAAN LQ 45 YANG TERDAFTAR DI BURSA EFEK INDONESIA

This study aims to determine the ability of independent commissioners, audit committees, audit quality and capital intensity to influence tax avoidance with the executive character as a moderating variable. This type of research uses a quantitative approach, which means that it is a research method based on the philosophy of positivism, is used to research a specific population or sample, collect data, use research instruments, analyze quantitative or statistical data, with the aim of testing hypotheses that have been determined by taking the company LQ 45 as a sample. The analysis technique used in this research is multiple linear regression with a significance level of 5%. Statistical testing using IBM Statistic SPSS V.25. The results of this study indicate that independent commissioners, audit committee, audit quality and capital intensity have a simultaneous and partial effect on tax avoidance, executive character does not moderate the effect of independent commissioners on tax avoidance, executive character moderates the effect of audit committee on tax avoidance, executive character does not moderate the effect of audit quality on tax avoidance, executive character moderates the effect of capital intensity on tax avoidance.

Bonus Compensation and Real Earnings Management: Audit Committee Effectiveness as Moderation Variable

This study analyzes the effect of bonus compensation on real earnings management, with the audit committee effectiveness as a moderating variable in manufacturing companies in Indonesia. The sample of this research is manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2020. The research sample was selected by the purposive sampling method. Hypothesis testing is done by using panel data regression and Moderated Regression Analysis (MRA). The results showed that bonus compensation had a positive effect on real earnings management, while the effectiveness of the audit committee did not weaken the effect of bonus compensation on real earnings management. The findings of this study provide an overview to the company's stakeholders that bonus compensation is one of the factors that motivates company management to practice earnings management, especially earnings management related to the company's real activities. In addition, this study also provides an overview of the effectiveness of the implementation of corporate governance mechanisms in the sample companies, in particular the ineffectiveness of the supervisory function related to earnings management practices carried out by the audit committee

감사위원회 활동성과 감사보고시차

[Purpose]Although there have been a number of studies that have examined the effect of audit committee activity on auditing quality and earnings quality, no studies have investigated how audit committee activity influences auditing efficiency or audit effectiveness. The purpose of this study is to clarify the role of audit committee meeting frequency in corporate governance by verifying the relationship between audit committee activity and audit efficiency. [Methodology] The regression models were estimated to verify the relationship between audit committee activity and audit report lags. In addition, two-stage least squares (2SLS) was used to control potential endogeneity of this relationship. [Findings] The results showed that there was a significant and negative relationship between audit committee activity and audit report lags and this relationship was more pronounced for firms with mandatory audit committee. These results show that audit committee meeting frequency leads to audit efficiency because audit committee effectiveness is relatively increased in firms under regulatory pressure. Thus, audit committee meeting frequency seems to help limit managers’ opportunistic behavior in advance when firms are under high regulatory pressures. This relationship remains the same even after controlling for the potential endogeneity between audit committee activity and audit report lags. In addition, it was found that audit committee activity contributed to audit efficiency when the ratio of outside directors in the board was relatively higher and there was a continued auditor. Therefore, the audit committee is to enhance audit efficiency through interaction with internal and external monitoring bodies. [Implications]This study contributed to prior research by suggesting new evidence that audit committee activity positively affects audit efficiency rather than audit effectiveness.