Integrity Of Financial Statements Research Articles

PENGARUH KEPEMILIKAN INSTITUSIONAL, KOMITE AUDIT DAN KOMISARIS INDEPENDEN TERHADAP INTEGRITAS LAPORAN KEUANGAN


 
 
 
 ABSTRACT
 
 
 
 
 
 
 This study aims to determine the effect of Institutional Ownership, Audit Committee and Independent Commissioners on the Integrity of Financial Statements, partially or simultaneously. The population of this study were all manufacturing companies in the chemical sub-sector which were listed on the Indonesia Stock Exchange (IDX), totaling 93 companies. This study used the 2018-2022 observation period, using the purposive sampling method to obtain a sample of 70. The data analysis method used in this study was a multiple linear regression test. The variables used are Institutional Ownership, Audit Committee and Independent Commissioners as independent variables, while the Integrity of Financial Statements as the dependent variable. The results of this study resulted in the finding that partially Institutional Ownership, Audit Committees, Independent Commissioners have a significant effect on the Integrity of Financial Statements. Simultaneously, institutional ownership, audit committee and independent commissioners have a significant effect on the integrity of financial statement.
 
 
 
 
 
 
 
 
 
 
 

Integrity of Financial Statements: An Empirical Study in Indonesia

The integrity of financial reporting depends on the accuracy and objectivity of the data given. Another technique to assess a company's reliability in providing financial data is by looking at their reporting integrity. The purpose of this study is to investigate the relationship between intellectual capital, leverage, and the credibility of financial statements from an institutional ownership perspective. The following transportation and logistics businesses were chosen using a purposive sample technique: all companies listed on the Indonesia Stock Exchange from 2018 to 2022. The research methodology for this study is panel data regression, and Eviews 10 will be used for data analysis. The study's findings indicate that all three independent factors have an impact on financial report integrity concurrently; institutional ownership has no effect, leverage has a negative impact, and intellectual capital has a partial positive impact.

Internal Audit versus External Audit: A Qualitative Perspective

This qualitative study examines the roles, methodologies, effectiveness, and challenges of internal audit versus external audit within organizational contexts. The research aims to provide insights into the distinct yet complementary functions of internal and external audit, shedding light on their contributions to organizational governance, risk management, and financial reporting integrity. The study employs a comprehensive literature review approach, synthesizing existing research to explore definitions, conceptual frameworks, methodologies, practices, and assessments of effectiveness in both audit functions. Key findings reveal that internal audit serves as a proactive advisor to management, focusing on enhancing operational efficiency, strengthening internal controls, and driving continuous improvement and innovation. Conversely, external audit acts as a safeguard for external stakeholders, providing assurance on the reliability and integrity of financial statements. Methodologies and practices vary between internal and external audit, with internal audit employing risk-based auditing, compliance auditing, and performance auditing approaches, while external audit adheres to auditing standards and regulations. Despite their distinct roles, both audit functions face challenges related to audit quality, independence, and relevance. The study underscores the importance of understanding and leveraging the multifaceted contributions of internal and external audit to navigate the complexities of the modern business environment effectively.

Factors Affecting the Integrity of Financial Statements with Company Size as a Moderation Variable

This study aims to examine the effect of audit quality, audit committee, leverage, and independent commissioners on the integrity of financial statements in manufacturing companies listed on the Indonesia Stock Exchange in 2019-2021. This study also examines whether company size can moderate the respective relationship between audit quality, audit committee, leverage, and independent commissioners on the integrity of financial statements. This study used a quantitative approach with a comparative causal type. The population in this study is all manufacturing companies listed on the Indonesia Stock Exchange in 2019-2021. The sampling technique uses purposive sampling. The data used in this study is secondary data accessed through the IDX website. Data analysis uses multiple regression analysis for audit quality hypothesis, audit committee, leverage, and the independent commissioner as well as absolute difference value analysis for audit quality, audit committee, leverage, and independent commissioner on financial statement integrity with company size as a moderation variable. The results of this study show that the quality of audits, audit committees, leverage, and independent commissioners have a positive and significant effect on the integrity of financial statements. The moderation variable is the size of the company able to moderate the relationship between audit quality, audit committee, and leverage on the integrity of financial statements.

FINANCIAL STATEMENT INTEGRITY: THE ROLE OF AUDIT TENURE, KAP SIZE, AND AUDIT FEE

This study aims to determine and analyze the impact of audit tenure, the size of KAP, and audit fees. The purpose of this study is to disseminate knowledge and information about factors that affect the integrity of financial statements of building construction companies in Indonesia. The object of this study is a building construction sub-sector company listed on the Indonesia Stock Exchange during the period 2020 – 2022. The entire quantitative research sample amounted to 33 companies. Purposive sampling is used in the sampling procedure. The test was conducted using multiple regression analysis, where the integrity of financial statements is measured using accounting conservatism. The results of this study show that tenure audits and audit fees have a negative and significant effect on the integrity of financial statements and the size of public accounting has a positive and significant effect on the integrity of financial statements. It is expected that with this research, all parties (management, shareholders, and auditors) must be highly committed to realizing the improvement of financial statement integrity. The limitation of this study is the low adjusted R square value of 0.271, which indicates that the independent variable is only able to explain 27.1% of the variation of the dependent variable, as well as the lack of research samples. Then the suggestion for future research is to add research samples and other variables such as (1) company size; (2) leverage; (3) profitability; (4) financial distress that can explain the effect on the integrity of financial statements.

The Influence of Institutional Ownership, Audit Committee, Independent Commissioner, Auditors Switching on The Integrity of Financial Statement and Audit Quality as a Moderation Variable in Manufactured Companies Listed on The Indonesian Stock Exchange in 2017-2021

This research aims to determine the influence of institutional ownership, audit committee, independent commissioners, and auditors switching on the integrity of financial reports in consumer goods industrial sector companies listed on the Indonesia Stock Exchange. This research also aims to determine whether audit quality can be used as a moderating variable for the relationship between institutional ownership, audit committee, independent commissioner, auditor switching, and financial report integrity. The research design carried out was causal relationship research with a quantitative approach. The sample in this research was 35 companies in the consumer goods industry sector listed on the Indonesia Stock Exchange in 2017-2021. The type of data used in this research is secondary data. The sample research technique uses purposive sampling. The data analysis technique uses multiple linear regression analysis and a residual test for moderating variables. The results of this study show that partially institutional ownership and auditors switching have a positive and significant effect on the company's financial performance. Meanwhile, the audit committee and independent commissioners do not significantly influence the integrity of financial reports. Other results also show that audit quality can moderate the influence of institutional ownership and change of auditors but cannot significantly moderate the audit committee and independent commissioners on the integrity of financial reports in manufacturing companies in the consumer goods industry listed on the Indonesia Stock Exchange. Keywords: institutional ownership, audit committee, independent commissioner, change of auditor, financial report integrity, audit quality

The Influence of Corporate Governance and Leverage on The Integrity of Financial Statements with Firm Size as a Moderation Variable

The Influence of Corporate Governance and Leverage on The Integrity of Financial Statements with Firm Size as a Moderation Variable

Factors Affecting The Integrity Of Property And Real Estate Company Financial Statement

Companies have a responsibility to uphold integrity when disclosing financial reports. This research examines Indonesian Stock Exchange-listed companies in the property and real estate subsector from 2017 to 2021, specifically focusing on the ownership structure of financial, leverage, and intellectual assets and their impact on the integrity of financial statements. Quantitative methods, including panel data regression and descriptive statistics, are used to test hypotheses. A purposive sampling technique was utilised, resulting in a sample of 16 companies and 70 observation data points. The results indicate that ownership by institutions, managers, financial leverage, and intellectual assets collectively impact the honesty of financial statements. According to the findings, leverage affects the integrity of financial accounts somewhat positively, whereas managerial ownership exerts an adverse impact. However, no significant influence was found between institutional ownership and intellectual capital in relation to financial statement integrity.

The role of random forest in internal audit to enhance financial reporting accuracy

Internal audit is a bulwark ensuring the integrity of financial statements, a linchpin for stakeholder trust and informed corporate decision-making. With the proliferation of complex financial transactions, audit teams face mounting challenges in deciphering voluminous transactional data to safeguard financial reporting quality. Machine learning has the potential to identify signifiers of financial reporting quality. Within the Design Science Methodology framework, we apply the Random Forest Classifier technique to metrics such as the error rate to enhance financial reporting. We find that the Random Forest Classifier identifies that certain parameters are critical to error detection, which enhance account receivable accuracy, lower receivable account control risk. This research advances the argument that technologically-enhanced internal audit procedures can play a pivotal role in ensuring that financial reporting mirrors the economic reality of the company.

Analysis Of The Effect Of Corporate Governance Structure And Financial Distress

The purpose of this study is to see the influence of corporate governance structure (independent commissioner, audit committee, institutional ownership, managerial ownership) and financial distress on the integrity of financial statements of studies on manufacturing companies listed on the IDX for the 2017-2021 period. In this study, quantitative methods were used with secondary data obtained by collecting financial statement data for all manufacturing companies listed on the IDX for the 2017-2021 period, with the use of purposive sampling techniques, sample selection with predetermined criteria so that samples of 40 companies with 5 years of period were obtained with 200 samples. The study used SPSS data processing applications with analytical methods multiple linear regression. The results of the hypothesis test in this study found that independent commissioners, audit committees have no influence on the integrity of financial statements. On the contrary, institutional ownership, managerial ownership and financial distress have an influence on the integrity of financial statements. The results of the F test prove simultaneously that the variables of independent commissioner, audit committee, institutional ownership, managerial ownership, and financial distress affect the integrity of financial statements.

Factors Influencing the Integrity of Financial Statements

Factors Influencing the Integrity of Financial Statements

Pengaruh leverage, audit tenure dan ukuran perusahaan terhadap integritas laporan keuangan pada perusahaan sektor industri dasar dan kimia di BEI

The integrity of financial reporting refers to the accuracy and honesty with which financial information is presented. It is essential that all information about the company's financial position, performance and cash flows is accurate and reflects the company's circumstances, as the company is accountable to the users of financial reports, including investors and creditors. The integrity of financial reports is assessed using the market-to-book ratio, which measures the difference between the company's assessment and the market. This study aims to investigate the effects of leverage, audit tenure, and firm size on the integrity of financial reports through quantitative research. This research analyses the financial statements of Basic Industry and Chemical Sector companies listed on the IDX for the period of 2019-2021, using purposive sampling techniques and secondary data. Multiple linear regression analysis was conducted for estimating the relationship among variables. The findings indicate that leverage does not affect the integrity of financial statements, while audit tenure has a significant impact on the integrity of financial statements. Additionally, the study found that company size has a negative and significant effect on the integrity of financial statements.

Determinants of Financial Statement Integrity

Firms and financial statements are closely related. This study examines whether intellectual capital, managerial ownership, institutional ownership, and firm size affect the integrity of financial statements. This study uses the consumer goods sector firms that have been listed on the Indonesia Stock Exchange (IDX) in 2017-2021. Purposive sampling is used as a method of selecting research samples and analyzed by multiple regression methods. The results show that the integrity of financial statements is influenced by intellectual capital, managerial ownership, and firm size. Institutional ownership does not impact the integrity of financial statements for consumer goods firms listed on the IDX from 2017 to 2021. Intellectual capital serves as a potential tool for optimizing management of intellectual capital in various sectors, including consumer goods firms. Based on the findings, it is recommended that companies prioritize the effective management of intellectual capital, consider enhancing managerial ownership structures, and recognize the impact of firm size on maintaining the integrity of financial statements.

The influence of independence, corporate governance, and audit quality on the integrity of financial statements

The influence of independence, corporate governance, and audit quality on the integrity of financial statements

Fraud-Free Green Finance: Using Deep Learning to Preserve the Integrity of Financial Statements for Enhanced Capital Market Sustainability

In the era of green finance and sustainable energy markets, preserving the integrity of financial statements is paramount. This paper introduces an innovative approach to financial statement fraud detection through the application of deep learning techniques. We employ a Temporal Convolutional Network (TCN) to analyze stock market data and identify deceptive practices. Our study meticulously reviews related work, highlighting the critical intersection between financial statement fraud detection and the principles of green energy finance. The Materials and Methods section outlines our data sources, variable selection, and the TCN model's architecture, while the Results and Discussion section presents comprehensive evaluations and comparisons against traditional baselines. Our findings demonstrate the exceptional accuracy and reliability of the TCN model in detecting financial statement fraud, underscoring its potential to instill transparency in energy markets. In conclusion, our research contributes significantly to the promotion of financial integrity and sustainability, offering a powerful tool for investors and stakeholders committed to responsible and ethical investments within the framework of green finance.

Good Corporate Governance and Integrity of Financial Statement

This research aims to find out any influences of Audit Quality, Industry Specialized Auditors, and Audit Fee toward Financial Statement Integrity as well as Good Corporate Governance as an intervening variable. Populations used on this research are companies in mining sectors that have been listed in Bursa Efek Indonesia (BEI) from 2018-2021. This research has 36 companies with a total of 144 samples, all of them already eligible for purposive sampling. This research is analyzed using Structural Equation Model (SEM) powered by Analysis of Moment Structures (AMOS). This research’s hypothetical results suggest that audit qualities affect good corporate, audit fee, and good corporate governance. Hence, it also affects the financial statement integrity overall. This research also suggests audit quality and industry specialized auditor do not affect the financial statement integrity. Industry specialized auditor and audit fee also do not affect good corporate governance.

The Influence Of Institutional Ownership, Managerial Ownership, And Company Size On The Integrity Of Financial Reports

This study aims to determine the effect of Financial Statement Integrity on Institutional Ownership, Managerial Ownership, and Company Size in Mining Sector Companies Listed on the IDX for the 2018-2021 Period. The population of this study includes all mining companies listed on the IDX for the 2018-2021 period. The sample was taken using the purposive sampling method. The independent variable in this study is Institutional Ownership which is measured by dividing the number of shares owned by the institution by the number of shares outstanding, Managerial ownership is measured by dividing the number of shares owned by Management by the number of shares outstanding, and Size The company is measured by multiplying Ln by the number of assets. The dependent variable in this study is the Integrity of Financial Statements as measured by the Accounting Conservatism method. The results of this study indicate that: (1) Institutional Ownership has a negative effect on the Integrity of Financial Statements. (2) Managerial ownership has no effect on the Integrity of Financial Statements. (3) Company size has a positive effect on the integrity of financial statements.

CONSERVATISM INDEX IN FINANCIAL REPORTING INTEGRITY: BASED ON GOOD CORPORATE GOVERNANCE, KAP REPUTATION, LEVERAGE AND AUDIT TENURE

The integrity of financial statements is very important for companies in order to gain the trust of users of financial statements. This study aims to analyze the effect of good corporate governance, reputation, leverage and audit tenure on the integrity of financial statements. 135 manufacturing companies listed on the Indonesia Stock Exchange in 2017-2020 became the population and 15 were selected as samples by purposive sampling. This research method uses a quantitative approach with data analyzed using multiple linear regression analysis. Audit committee variables and audit tenure variables have a positive effect on the integrity of financial statements, managerial ownership and CPA reputation variables have a negative effect on the integrity of financial statements, while the independent commissioner, institutional ownership and leverage have no effect on the integrity of financial statements. This study implies that in manufacturing companies the factors that are thought to affect the integrity of financial statements in this study still show different results from previous studies so that they cannot be generalized in various sectors and research periods. These factors still need to be re-examined in further research to get more valid results.

Pengaruh Intellectual Capital, Komite Audit, Komisaris Independen Terhadap Integritas Laporan Keuangan

A good financial report is a report that contains the company's condition accurately. The integrity of financial reports is a report that presents financial information in a fair, honest and impartial manner. This learning benchmark is an examination of the impact of intellectual capital, the Audit Committee, and the Independence of the Board of Commissioners regarding the Integrity of Financial Statements. This study uses a sample size of 45 information units from the transportation and logistics sector of nine companies listed on the Indonesia Stock Exchange. during the period 2017 to 2021 as research subjects. This analysis uses a quantitative approach which is based on a deliberate purposive sampling technique for selecting the sample. Information analysis was performed through information panel regression, and information checking was performed using eviews 12. Descriptive statistics, classic firm assumption testing and hypothesis testing using the regression model for the information panels were used. Based on the results of this study indicate that intellectual capital. The audit committee and the independence of the board of commissioners have an effect simultaneously. Meanwhile, the results of a partial examination of the committee and the independence of the board of commissioners have no effect on the integrity of financial reports, while intellectual capital has an effect on the integrity of financial statements.

Pengaruh Kualitas Audit, Ukuran Perusahaan, Financial Distress dan Komisaris Independen terhadap Nilai Perusahaan

The purpose of this study is to provide empirical evidence of the effect of audit quality, firm size, Financial Distress, Independent Commissioner on the integrity of financial statements. Manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2021 as quantitative data from this study and obtained from the financial statements of manufacturing companies listed on the Indonesia Stock Exchange (IDX). The financial statements of manufacturing companies that went public during the 2017-2021 study period became the object of the research population. Purposive sampling. The expected results in this study concluded that audit quality has a positive effect on the integrity of financial statements, firm size has a positive effect on the integrity of financial statements, financial distress has no effect on the integrity of financial statements, and independent commissioners have a positive effect on the integrity of financial statements.