Number Of Audit Committee Members Research Articles

PENGARUH FEE AUDIT, FINANCIAL DISTRESS, KOMISARIS INDEPENDEN, DAN KOMITE AUDIT TERHADAP INTEGRITAS LAPORAN KEUANGAN

This research aims to examine the influence of audit fees, financial distress, independent commissioners and audit committees on the integrity of financial reports. Audit fees are measured using the natural logarithm of professional fees, financial distress is measured using the debt to equity ratio, independent commissioners are measured using the ratio of the number of members of the company's independent commissioners to the number of members of the company's board of commissioners, audit committees are measured using the comparison of the number of audit committees that come from from the independent committee with the number of audit committee members and the integrity of the financial reports as measured using the market to book ratio. This type of research is quantitative. Based on purposive sampling, the number of sample companies was 29 companies with an observation period of 5 years, so the total sample was 145 data on the property and real estate sectors listed on the Indonesia Stock Exchange (BEI) during the 2018-2022 period. The data analysis used in this research is a panel data regression model using E-Views 12. The results of this research show that partially audit fees and audit committees have no effect on the integrity of financial reports. Financial distress and independent commissioners have a significant effect on the integrity of financial reports. Meanwhile, simultaneously audit fees, financial distress, independent commissioners and audit committees influence the integrity of financial reports. Keywords: Financial Statement Integrity, Audit Fees, Financial Distress, Independent Commissioner, Audit Committee.

Corporate Governance Mechanism and Financial Ratios on the Indonesia Stock Exchange: How do they Affect Financial Distress?

Aims: The purpose of this study was to determine the effect of institutional ownership, board of directors, audit committee, company size, and sales growth on financial distress.
 Study Design: The population of this study consisted of 41 retail subsector companies listed on the Indonesia Stock Exchange (IDX) for the 2019-2022 period. The total observation data is 164 and obtained 64 data samples that meet the criteria and 100 data samples that do not meet the criteria (Loss, Gray Area, Incomplete variables). This research data comes from the company's annual financial statements.
 Methodology: The data collection method is purposive sampling and the analysis technique is model fit test, coefficient of determination test, and logistic regression. Financial distress is calculated using the Altman Z-Score calculation, and hypothesis testing is tested using the SPSS 26 analysis tool.
 Results: The results showed that good corporate governance proxied by the board of directors and audit committee has no effect on financial distress, while institutional ownership affects financial distress. Company size variables affect financial distress. While sales growth has no effect on financial distress.
 Conclusion: Based on this study, it is known that institutional ownership has an effect on financial distress, meaning that the greater the percentage of institutional ownership will reduce the possibility of the company experiencing financial distress. The board of directors has no effect on financial distress, meaning that the number of directors in a company does not affect the occurrence of financial distress. The audit committee has no effect on financial distress, meaning that the number of audit committee members is not able to reduce the problem of financial distress. Company size has an effect on financial distress, meaning that a higher total asset value owned by company would reduce the probability of financial distress. Sales growth has no effect on financial distress, meaning that the high or low level of sales growth does not reflect that it can be followed by an increase in profits earned by the company. To avoid financial distress, it is done by higher percentage of institutional ownership, as well higher total asset value owned by the company properly.

The impact of corporate governance on the financial performance of banks

The paper aimed to examine the impact of corporate governance on the financial performance of commercial banks in Jordan. The variables used to measure corporate governance were the board of directors' size, independent members of the board of directors, and the number of audit committee members, while those used to measure financial performance were return on investment, return on equity and earnings per share. The study used a quantitative approach based on the data of 12 commercial banks in Jordan during the period 2005-2022. The panel data were analyzed using the EViews software based on the ordinary least squares time series technique. The paper found the effect of all corporate governance variables on both return on investment and return on equity. However, it indicated that the board of directors' size and the independent members of the board of directors had an impact on earnings per share. This study highlighted corporate governance variables in one of the significant sectors of developing economies. Moreover, it recommended the need to review the principles used in selecting members of the audit committee for commercial banks in Jordan, due to their importance in developing long-term financial performance.

The impact of corporate governance on the financial performance of banks

The paper aimed to examine the impact of corporate governance on the financial performance of commercial banks in Jordan. The variables used to measure corporate governance were the board of directors' size, independent members of the board of directors, and the number of audit committee members, while those used to measure financial performance were return on investment, return on equity and earnings per share. The study used a quantitative approach based on the data of 12 commercial banks in Jordan during the period 2005-2022. The panel data were analyzed using the EViews software based on the ordinary least squares time series technique. The paper found the effect of all corporate governance variables on both return on investment and return on equity. However, it indicated that the board of directors' size and the independent members of the board of directors had an impact on earnings per share. This study highlighted corporate governance variables in one of the significant sectors of developing economies. Moreover, it recommended the need to review the principles used in selecting members of the audit committee for commercial banks in Jordan, due to their importance in developing long-term financial performance.

DOES CLIENT IMPORTANCE AFFECT AUDIT QUALITY IN MODERATION?

The financial report is a report that is very necessary in making decisions. For this reason, a quality audit is needed that can truly explain the condition of the company. Good audit quality can provide the right information for its users, while poor audit quality can cause many losses, both internal and external. The purpose of this research is to examine the influence of audit tenure, audit committee, and public accounting firm industry specialization on audit quality with client importance as a moderator. The data in this research uses secondary data obtained from the 2019 to 2021 financial reports listed on the Indonesia Stock Exchange using the purposive sampling method and using the SPSS program in data processing. The independent variables in this research are audit tenure, audit committee, and public accounting firm industry specialization. Audit tenure is calculated based on the number of years of engagement, the first year is given the number 1 and 1 is added for the following years. The audit committee is calculated based on the number of audit committee members. Public accounting firm industry specialization is calculated based on the number of companies audited by the same auditor divided by the number of companies, and if the result is more than 20% it is given the number 1, otherwise it is given the number 0. The dependent variable in this research is audit quality which is given the number 1 for the Big Four and 0 for the Non-Big Four, and the moderating variable is client importance which is calculated by the natural logarithm of total assets divided by the natural logarithm of total assets audited by the same auditor. This research uses logistic regression analysis in data processing because the independent variable indicators are dichotomous. The results of this research are that audit tenure affects audit quality, audit committees have an effect on audit quality, and public accounting firm industry specialization has no effect on audit quality. Client importance as moderation also cannot influence audit tenure, audit committee, and public accounting firm industry specialization on audit quality.

Faktor-Faktor Yang Mempengaruhi Integritas Laporan Keuangan

The aim of this research is to examine the influence of institutional ownership, independent commissioners, audit committees and managerial ownership on the integrity of financial reports. Financial account integrity, which is measured by the market price of shares divided by the book value of shares, is the dependent variable. Meanwhile, institutional ownership is measured by the number of shares owned by the institution in the number of outstanding shares, independent commissioners are measured by the number of independent commissioners in the number of commissioners, audit committees are calculated by the number of audit committee members, and managerial ownership is measured by the number of shares owned by management in the section with number of shares distributed. The research population is companies listed on the Indonesia Stock Exchange (BEI) from 2018 to 2022. Purposive sampling was used to determine the research sample, and 18 companies were obtained with a total of 90 observations. Multiple linear regression analysis is used as an analysis technique. Based on the findings of this research, institutional ownership, audit committee and managerial ownership have no effect on the integrity of financial reports, but independent commissioners have a good and significant effect on the integrity of financial reports.

AUDIT COMMITTEE CHARACTERISTICS AND FINANCIAL PERFORMANCE OF MANUFACTURING COMPANIES IN CAMEROON

This study examines audit committee characteristics and financial performance of manufacturing companies in Cameroon. The study adopted ex-post facto research design. The population consisted of the 133 manufacturing companies in Cameroon. A sample of 20 companies was used and data collected from secondary sources within the period 2013 to 2022. The data were analysed with the aid of a panel regression analysis. The results showed that audit committee size, expertise, and independence all positively affect financial performance proxy by return on assets, net profit margin and Tobins Q. the study recommends that manufacturing companies should make an effort to add an audit committee that is more educationally diverse and inclusive. This opens up the possibility of doing more risk assessments because audit committee members who are also knowledgeable in accounting have established precedents for better risk assessment and asset management for improved operational performance. Manufacturing firms should strictly abide by the corporate governance guidelines promoted regarding the number of audit committee members, as it has been demonstrated that the more members, the more effective resources in terms of independence and expertise to facilitate an effective audit function disposition for efficient business decisions that will favorably affect financial performance. In maintaining the required number of audit members, manufacturing businesses should always include an equal number of shareholders and managements representatives. This will lead to the formation of an unbiased audit committee that is fair and free from outside interference.

Pengaruh Komite Audit, Ukuran Perusahaan dan Profitabilitas terhadap Earnings Management di Perusahaan Manufaktur Sektor Barang Konsumsi

This study aims to examine the effect of the audit committee, firm size, and profitability on earningsmanagement. Earnings management is proxied by discretionary accruals, audit committee isproxied by the number of audit committee members, firm size is measured by the natural logarithmof the firm's total assets, and profitability is measured by return on assets (ROA). The researchmethod used is a quantitative method with secondary data. The analysis technique used is multiplelinear regression analysis. The sample selection technique uses a purposive sampling methodwhich consists of 41 manufacturing companies in the consumer goods sector listed on theIndonesia Stock Exchange for 2018-2021. The results of the study partially show that the auditcommittee has a positive and significant effect on earnings management, firm size has nosignificant effect on earnings management, and profitability has a positive and significant effecton earnings management. In addition, the audit committee, firm size, and profitabilitysimultaneously have a significant effect on earnings management.

Peran komite audit pada sustainability disclosure

The purpose of the study was to analyze the effect of size, independence, frequency of meetings, and financial expertise of audit committee members on sustainability disclosure. The sample was taken using a purposive sampling method, and the sample was public goods and consumption sector companies from 2015 to 2019. The number of sample companies was 37, with some observations during 2015 – 2019 as many as 185 company years—tests using balanced panel regression using E-Views. The assessment of sustainability disclosure in the annual report uses the 2016 GRI index, which consists of universal (100), economic (GRI 200), environmental (GRI 300) and social (GRI 400) standards. The test results provide empirical evidence that the number of audit committee members has a negative effect on sustainability disclosure. The expert background of the audit committee members in the fields of accounting and finance has a positive effect on sustainability disclosure. The sustainability disclosure will be more qualified if the audit committee members have a financial background. Other independent variables, such as independence and meeting frequency, do not affect sustainability disclosure. This research implies that the amount and background of knowledge or expertise of audit committee members in the financial sector can improve the quality of sustainability disclosure.

Factors that affect Fraudulent Financial Reporting

The objective of this research is to obtain empirical evidence of the influence of factors that can affect fraudulent financial reporting. Those factors are financial targets, financial stability, external pressure, institutional ownership, number of audit committee members, ineffective monitoring, nature of industry, external auditor quality, the change of auditor, auditor’s opinion, change of directors, proportion of independent commissioner, and numbers of CEO’s picture. The variables used on this research if from fraud pentagon theory perspective. This research’s population is manufacturing companies listed in Indonesia Stock Exchange (IDX) from 2017 to 2020. The sample of this research is selected by using purposive sampling based on several criteria. This research uses 302 data from 101 listed manufacturing companies as the sample. The method used for analyzing and testing the data on this research is by multiple regression to see the influence between independent variables and fraudulent financial reporting. The result of this research shows that financial targets, nature of industry, and auditor’s opinion have significant influence on fraudulent financial reporting. In contrast, financial stability, external pressure, institutional ownership, number of audit committee members, ineffective monitoring, external auditor quality, the change of auditor, change of directors, proportion of independent commissioner, and numbers of CEO’s picture have no significant value to fraudulent financial reporting.

AUDIT DELAY PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA

<pre><em>This study aims to determine the effect of audit committee competence, number of audit committee members, audit committee meetings, audit committee independence and audit opinion on audit delay in manufacturing companies listed on the Indonesia Stock Exchange. The population in this study were 165 manufacturing companies listed consecutively on the Indonesia Stock Exchange. The sampling method used in this study was purposive sampling, with a research of 300 companies during the period 2018-2020. The data analysis technique used in this research is multiple linear regression analysis. The results of this study indicate that the competence of the audit committee has a positive effect on audit delay. The number of audit committee members and audit opinion has a negative effect on audit delay. Meanwhile, audit committee meetings and audit committee independence have no effect on audit delay. Further research can develop this research by using other variables that in theory have an influence on audit delay, such as audit tenure.</em></pre><pre><em><br /></em></pre>

Pengaruh Ukuran Perusahaan, Earning Per Share, Dan Komite Audit Terhadap Audit Delay

This study aims to analyze the effect of firm size, earnings per share (EPS) and audit committee on the length of audit delay. Firm size is measured using the natural log of total assets, earnings per share is measured by looking at the total earnings per share on the income statement, the audit committee is measured by looking at the number of audit committee members presented in the corporate governance section of the annual report, and audit delay is measured by calculate the amount of days difference from the closing date of the company's books to the date of issuance of the independent auditor's report. This type of research is descriptive research with a quantitative approach. Determination of the sample in this study was carried out using a purposive sampling method on 35 property and real estate sub-sector companies listed on the Indonesia Stock Exchange in 2016 – 2020. The sample data was obtained as much as 175 data, then outliers were carried out as many as 6 companies, so that the final sample data on This study contains 145 data. The results of this study conclude that (1) firm size has a positive effect on audit delay, (2) earnings per share (EPS) has a negative effect on audit delay, while (3) the audit committee has no effect on audit delay. Meanwhile, simultaneously, (4) firm size, earnings per share (EPS) and audit committee have an effect on audit delay.

The impact of audit committee characteristics, financial performance, and listing age on greenhouse gas emission disclosures of highly emitted industry in Indonesia

Greenhouse gas or carbon emissions produced by manufacturing operations and other highly emitted industries are causes of global warming. Therefore, either in the sustainability reporting or in the corporate social and environmental reporting section, as stated in the annual report, the company usually discloses its activities related to carbon emission handling for sustainable business. In Indonesia, however, the extent of carbon emission disclosures is voluntary. The objective of this study was to investigate the effect of audit committee characteristics, financial performance, and listing age on carbon emissions reporting of highly emitted companies in Indonesia. Audit committee characteristics were measured by the number of audit committee members and the number of audit committee meetings, while Altman financial distress model measured financial performance. A checklist based on the Carbon Disclosure Project (CDP) evaluated the greenhouse gas emissions disclosures. This study uses 99 companies of highly emitted industry listed on the Indonesia Stock Exchange. Results of multiple regression analysis indicate that the number of audit committee meetings positively affects the greenhouse gas emissions report. The result suggests that the more active the audit committee in the company in conducting meetings, the higher the company’s incentives to disclose carbon emission in the company’s annual report or the sustainability reporting. The study provides insight into the regulation released by the capital market authority agency regarding strengthening factors that may influence listed companies to report their carbon emission.

The role of the audit committee and employee well-being in controlling employee fraud

Fraud is still a problem in the banking industry. Association of Certified Fraud Examiners (ACFE) reported that banks experienced the highest number of fraud cases compared to other types of businesses. This study aimed to demonstrate the effect of the audit committee’s size, gender, expertise, independence, and employee well-being on employee fraud. The study on fraud uses questionnaire data to identify employee fraud (Fathi, Ghani, Said, & Puspitasari, 2017; Nawawi & Salin, 2018). We complement the previous study by using the number of cases as an indicator of employee fraud. Using a sample of 14 Islamic banks, we find that audit committee members’ accounting expertise and employee well-being can influence employees’ willingness to commit fraud. After overcoming the problem of endogeneity and robustness tests, the results of our study were consistent. The number of audit committee members, gender, and independence have not impacted fraud control. The expertise of the audit committee and employee well-being can be an effective internal control system in reducing fraud. This study adds to previous studies that have explained fraud by using employee perceptions and financial ratio indicators to detect director fraud. This study uses the number of employee fraud cases reported by the bank.

CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF LISTED INSURANCE FIRMS IN NIGERIA

The effect of corporate governance (CG) on the financial performance of publicly traded Nigerian insurance companies was researched to learn more about that financial performance. An expo-facto research design was employed. The study's population and sample were the twenty-four (24) publicly traded Nigerian insurance companies as of 31st December 2021. Panel data from the financial statements of insurance companies for the years 2012 to 2021 was gathered, and panel corrected standard error regression was used to analyze the data. The findings revealed that corporate Governance elements have a significant impact on financial performance. This study also found that board size, board meetings, board independence, and audit committee size have a significant effect on return on assets. The study recommended that the defined minimum number of audit committee members at the listed insurance companies in Nigeria should be maintained. In addition, the study recommends that board size should match the code and that more meetings involving shareholders and their representatives should be held to improve company policies and strategies that can help increase financial performance.

Empirical Study Of The Effect Of The Audit Committee Characteristics On Fraudulent Financial Reporting

The purpose of this study was to examine the characteristics of the audit committee on fraudulent financial reporting. The characteristic variables of the audit committee studied were: the number of independent audit committees, the financial expertise of the audit committee, the frequency of audit committee meetings, and the tenure of the audit committee. The number of independent audit committees is proxied by the percentage of independent audit committees to the number of audit committee members. The financial expertise of the audit committee is proxied by the percentage of the number of audit committee experts in finance and accounting to the number of audit committee members. The frequency of audit committee meetings is measured by counting the number of meetings held in one period (one year). The tenure of the audit committee is proxied by the percentage of the audit committee serving for two consecutive terms. Fraudulent financial reporting is proxied by a calculation called the F-Score (Fraud Score). The population of this study are banking sector service companies listed on the Indonesia Stock Exchange in 2016-2019. The sample of this study was 28 companies with 4 years of observation so that the data was 112. The data analysis method used was logistic regression with SPSS version 22. The results of this study indicate that the financial expertise of the audit committee, the frequency of audit committee meetings, and the tenure of the audit committee have a negative effect on fraudulent financial reporting, while the number of independent audit committees has no effect on reducing fraudulent financial reporting.

ANALISIS DIAMOND FRAUD THEORY DALAM MENDETEKSI KECURANGAN LAPORAN KEUANGAN Studi Kasus Pada Industri Keuangan Dan Industri Manufaktur Yang Terdaftar Di Bursa Efek Indonesia

Fraud is a threat to an entity and is a problem that continues to this day. Thus the purpose of this study is to examine the effect of variables from elements of the diamond fraud theory which include financial stability, external pressure, financial targets, personal financial needs, number of audit committee members, nature of industry, auditor turnover, and auditor turnover on fraudulent financial statement of financial and manufacturing industry companies listed on the Indonesia Stock Exchange. The samples used in this study were 67 financial industry companies and 67 manufacturing industrial companies in the 2014-2019 period. The data were analyzed using logistic regression because the fraudulent financial statement variable in this study is a dummy variable whose determination is based on the calculation of the Altman Z Score. The findings of this study indicate that of the 8 elements of the diamond fraud theory variable, only external pressure and financial target variables have an effect on fraudulent financial statements in financial industry companies, while in the manufacturing industry only external pressure and nature of industry variables have a significant effect. Keywords :diamond fraud theory, fraudulent financial statement, financial stability, personal financial need, number of audit committee members, nature of industry, change of auditors, and change of directors

Pengaruh Kualitas Komite Audit dan Kualitas Audit Terhadap Kualitas Pelaporan Keuangan Perusahaan

Users of financial statements need the quality of financial reporting to ensure the sustainability of the company, but not a few commit fraud. So we need an audit committee and audit quality for the big four/nonbig four. This study uses panel data for 2014-2019 from manufacturing companies registered with JII and data sourced from annual reports and company financial statements. As a result, the independent variable is explained by the audit committee's accounting expertise and audit quality has a positive and significant effect on 5% and the number of audit committee meetings is significant at 10% on the quality of financial reporting, while the variable number of audit committee members and size has no significant negative effect and leverage. positive and insignificant effect on the quality of financial reporting.

Financial Factors and Corporate Governance Affecting the Sukuk Rating

The development of corporate Sukuk in recent years has continued to show a significant increase in both the number of Sukuk issuers and investors of Sukuk instruments. This study aims to identify the determinants of financial factors and corporate governance factors on the Sukuk rating. The type of data used in this research is quantitative data from secondary sources. The purposive sampling method is used with criteria specifically non-financial companies issuing Sukuk circulating on the IDX and Sukuk ratings were issued by PT Pefindo. The data consist of 93 Sukuk issuances from 2010 to 2019. Ordinal logistic regression model with SPSS version 26 is then used to ascertain the significant determinants of Sukuk rating. This study found that financial factors such as liquidity, leverage, profitability, and firm size affect the Sukuk rating. However, company growth does not affect the Sukuk rating because the growth of company assets is not followed by the growth of intangible assets such as the quality of human resources. Corporate governance factors that affect the Sukuk rating are managerial ownership and independent commissioners. Meanwhile, the audit committee does not affect the Sukuk rating because the number of audit committee members does not increase the company's performance.

Islamic corporate governance and financial statements fraud: A study of Islamic banks

Financial statement fraud (FSF) in Islamic banks is unethical because it generates incorrect information for the stakeholders (Anisykurlillah, Jayanto, Mukhibad, & Widyastuti, 2020; Obid & Demikha, 2011). We identify some institutional factors, specifically corporate governance, as factors that can control FSF. Using the sample of Islamic banks in Indonesia, we found that the attributes of the bank’s Sharia Supervisory Board (SSB), such as its expertise, the number of members, and the number of meetings it holds, can reduce FSF. Besides, the number of audit committee members, and the reputation of the external auditors, can also help control FSF. This research does not find any influence of the board of commissioners’ structure toward FSF. Another finding is that of the three SSB attributes used in this research, the most decisive influence for controlling FSF is each SSB’s expertise in accounting, finance, or economics. We suggest that every SSB should have experts in those fields to complement the expertise in Islamic legal fields.