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

Determinants of financial reporting quality: Evidence from Indonesia

Journal of International Studies

This research aims to investigate the determinants of financial reporting quality, which is a very complex issue in the manufacturing industry and a significant contributor to a company's finance. This research is therefore aimed to examine the effect of litigation risk, investor's distrust, and legal expertise of the audit committee. The data were obtained from the annual reports of the manufacturing companies listed at the Indonesia Stock Exchange during 2015-2018. The research sample consists of 287 public companies, with moderated regression analysis used to examine the hypotheses. The results show that the risk of investor distrust affects financial reporting quality, while legal expertise of the audit committee is a moderating variable that strengthens the relationship between the risk of investor distrust and financial reporting quality.

The Effectiveness of Audit Committee toward Financial Reporting's Quality (Non-Financial Issuers Listed in Indonesia Stock Exchange

Corporate governance mechanism is a chain mechanism that direct and control a company with the purpose of the company's operations in line with the stakeholders' interest. Audit committee is an essential pillar of corporate governance in establishing integrity and quality financial reporting. The research aimed to testify the impact of audit committee toward financial reporting's quality in non-financial issuers listed in Indonesia Stock Exchange. The findings of the research indicated that the audit committee had significant impact on financial reporting's quality:

Factors That Affect The Quality Of Financial Reports

Syntax Idea

The research conducted aims to analyze and prove empirically the effect of leverage, profitability, institutional ownership, managerial ownership, independent board of commissioners, and audit committees on the quality of financial reports (study of manufacturing companies listed on the Indonesian stock exchange for the period 2015-2020). This research is based on secondary data obtained from the company's annual and financial reports. There were 60 companies out of a total of 193 companies in this study, which used a purposive sampling technique to determine the sample. As for data processing in this study, using multiple linear regression analysis methods and processed with Microsoft Excel and IBM SPSS Statistics 25.0 software. The research results show that (1) Leverage has a significant positive effect on the quality of financial reports. (2) Profitability has a significant negative effect on the quality of financial reports. (3) Institutional ownership has no significant ef...

The Influence of the Audit Committee and External Audit on the Quality of Financial Reports in Manufacturing Companies

Journal of Applied Business, Taxation and Economics Research

This study aims to analyze the effect of the audit committee and the external audit on the quality of financial statements. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the chemical sub-sector for the period 2018-2021. The data used in this study is secondary data, which comes from the annual report. The sampling technique used is purposive sampling with the number of companies as many as 12 times 4 periods to 48 sample data. Methods of data analysis using SPSS version 26 program, namely descriptive statistics, classical assumption test and multiple regression analysis. The results of this study indicate that partially the Audit Committee has a significant negative effect on the quality of financial reports and External Audit has a positive effect on the quality of reports. Simultaneously, the audit committee and the External Audit have an effect on the quality of financial reports.

The Effect of Financial Report Review with Auditor Competence on the Quality of Financial Reports

The Inspector General of the Ministry of Defense of the Republic of Indonesia is the Government Internal Audit Tool (APIP), whose task is to review the financial reports of the Ministry of Defense of the Republic of Indonesia. Audit The Ministry of Defense periodically conducts audits of financial reports every semester, the purpose of which is to provide limited assurance that the annual accounts of the Ministry of Defense of the Republic of Indonesia are prepared and presented in accordance with government regulations. Accounting standard requirements as the basis for issuing a statement of responsibility to the Minister of Defense. Based on the results of temporary observations made at this time, the implementation of financial status audits at the Ministry of Defense of the Republic of Indonesia is carried out in such a way that it is hoped that it will have a positive impact on quality improvement. review financial reports. This research was conducted by collecting basic information from respondents by distributing questionnaires. Questionnaires were distributed to selected respondents. The respondents to this research are auditors from the Ministry of Defense of the Republic of Indonesia. The aim of the survey was to determine the attitudes of the respondents as measured by a Likert scale (Likert-Rensis Method). The Likert scale used in this study consists of five scales, with each scale getting its own score. Multiple linear regression is used to determine the impact of each variable. The aim of this research is to see the relationship between the auditor's expertise in auditing financial statements and improving the quality of financial report assessment. The results of testing the hypothesis indicate that the quality of financial statements is influenced by the implementation of audits and auditor competence.

Factors Affecting the Financial Report Quality

Companies in Indonesia continue to improve their financial quality report. It is important to present economic information about company's financial position. This study aim is to examine the factors affecting financial quality report. The population of this study is the accounting and finance employees at Surabaya companies. The samples are 133 respondents. The data is analyzed by Multiple Regression Analysis through with SPSS 10.0 software. The results of this research show that organizational culture, work ethic, Accounting Knowledge simultaneously affect on financial report quality. In addition, partial tests show that organizational culture partially affect on financial report quality, work ethic partially affect on financial report quality and knowledge level partially affect on financial report quality. Only organizational culture does not have a strong effect on financial report quality.

An Investigation on the Impact of Audit Quality, Audit Committee and Financial Reporting Quality: Evidence from Malaysia

The International Journal of Humanities & Social Studies, 2020

These financial statements should not be intentionally prepared to mislead the user, but must provide reliable, timely, and relevant information to assist users when it comes to making important decisions (Kibiya, Che-Ahmad &Amran, 2016). This implies that information should be evidently recent, with additional facts supplied in the supporting foot note as a desire to assist in clarification. The information should not have any material error and bias, and should not be misleading (Kingsley, Gina & Vivian, 2014). Hence, the information needs to faithfully present the business activity and other events, reproduce basic substance of events and cautiously represent estimates and uncertainties using proper disclosure (Ofoegbu & Okoye, 2011). The steadfastness of this information depends on the relevance and reliability of accounting earning. Malaysia has not been insulated from firms' mischief and misconduct. Numerous eminent financial improprieties have taken place in Malaysia associated with large firms such as Transmile Group Bhd., Malaysian Airlines Systems, LFE corporation Berhad, PromtoBhd and MEMS Technology Bhd (Hasnan, Rahman & Mahenthiran, 2013). Sadique, Roudaki, Clark and Alias (2010) referred to a survey by PricewaterhouseCoopers that 48% of the companies in Malaysia were victims of economic crime, and with regard to fraud, 62% of listed companies were affected. The series of corporate scandals has caused a lot of damage to investors' confidence in the capital market of Malaysia (Kallamu & Saat, 2015). Due to the financial fraud cases highlighted above, Hasnan et al. (2013) argued that usually fraudulent financial reporting begins as earnings management (EM) and exhausts the most aggressive Generally Accepted Accounting Principles (GAAP) and grows over time to become norm. However, earnings management (EM) might be beneficial to reach stockholders' incentives and improves the information value of earnings (Rezaei & Roshani, 2012). There are two

Determinant of Indonesia Government Financial Reporting Quality

Journal of Business and Management Review

This study aims to examine the factors that determine the quality of financial statements in the central government in Indonesia at Ministries/Agencies, namely audit findings and follow-up of audit recommendations. This study uses quantitative methods with secondary data from 74 of 88 Ministries/Agencies in the Central Government in Indonesia. The sampling method is purposive sampling with financial statements starting from 2015-2019 which are processed using the STATA. This study shows that audit findings and follow-up of audit recommendations affect the quality of financial reporting. The more audit findings can have a negative impact on the quality of financial reports and the more follow-up on audit results recommendations can have a positive impact on the quality of financial reporting. This study only analyzes audit findings and follow-up of audit recommendations without any other variables that can support the quality of financial statements and can lead to accuracy in this s...

An Investigation of Factors Influencing Audit Quality According to Islamic Audit: A Study for the Jakarta Islamic Index

International Journal of Economics and Business Administration

The purpose of this study is to examine the influence of past audits, auditors' training and auditors' experience on audit quality in companies. The method used was quantitative method. The research was done on 49 companies listed in the Jakarta Islamic index.The research examines the influence of the education of auditors, audit period, and the auditors' experience on the quality of audits. It can be seen from the F test that produces the value of F count> F table or 5048.932> 1.667.

Determinant of the quality of the national financial audit report: study at National Auditor Board Jambi Province

Jurnal Perspektif Pembiayaan dan Pembangunan Daerah, 2019

This study aimed to examine the effect of training, experiences, gender, age and educational background possessed by the auditor on the quality of State Financial Audit results. This research used secondary data provided by Audit Board of the Republic of Indonesia Representative of Jambi Province in the form of 2016 and 2017 staffing data and Audit Reports. Multiple linear regression analysis was used for the analysis method. The study results found that the quality of the state financial audit was affected by experiences. However, the study failed to find the influences of age, education, and gender on the quality of state financial audit results. It provides empirical evidence that the auditor's ability to find and reveal findings has been influenced by experiences of the auditor.