Relationship Between The Corporate Governance Mechanism and Auditors Characteristic to The Restated Financial Statements In Indonesia Stock Exchange (original) (raw)
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Corporate Governance, Audit Firm Size and Restated Financial Statement in Indonesia Stock Exchange
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This research aims to describe the corporations to take restatement in financial statement such as, corporate governance implementation and size of Audit Firm. Corporate Governance and size of Audit Firm are involved in auditing process. Theoretically, those influence the quality of financial statement. The occurrence of restatement of financial reporting is as a proxy for a lower of financial statement quality. Hence, corporate governance and size of Audit Firm should prevent from restated financial statement. The result of this research describe that number of independent commissioner and number of audit committee do not prevent from restated financial statement. In addition, size of Audit Firm is not obvious to increase the quality of financial statement, because there are several of big four audit firms have been appointed by such corporation as external auditor or some of restatements have been done by non-big four. This research describes the composition of independent commissioner, audit committee and also Audit Firms size do not influence directly to restated financial statement.
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:
European Journal of Business and Management Research
This study aims to analyze corporate governance towards the publication of financial statements on the Indonesia Stock Exchange. The end of the financial year until the date of publication of the financial statements as a period of reporting time lag. Ownership composition, characteristics of directors and commissioners, and audit committee as a proxy for corporate governance. Proportional strata method for selecting a sample of 775 annual reports, for the period 2013-2014 from nine industry groups. Multiple regression analysis techniques, using control variables of size, performance, auditor quality, and type of industry. The results showed that ownership, board meetings, and audit committee meetings, as well as the number of commissioners and audit committees, had a significant effect on the issuance of issuers' audit reports. While the independence of directors and commissioners does not affect.spacing.
Soedirman Accounting, Auditing and Public Sector Journal
This research is a research about the effect of good corporate governance and audit quality to earnings quality with firm size as moderating variable. The size of the board of commissioners is measured by the number of internal and external board members, the concentrated ownership is measured by the percentage of shares held, the quality of the profit is measured by the discretionary accruals, the audit quality is measured by the amount of audit fees, and the size of the company is measured by the natural log of total assets. The sample in this research is index Compass 100 companies listed on BEI during 2010-2015 as many as 54 companies. Data collection method using purposive sampling technique. Data analysis technique is multiple panel data regression analysis using STATA software. The results show that the size of the board of commissioners and audit quality has no significant effect on earnings quality. Concentrated ownership has a negative effect on earnings quality. The size of the firm has a significant positive influence on earnings quality and firm size is able to moderate significantly positive and negatively significant impact on audit quality and ownership is concentrated on earnings quality. Meanwhile, firm size is not able to moderate significantly the effect on the size of the board of commissioners on earnings quality.
Asian Management and Business Review
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.
The International Journal of Business & Management, 2020
Auditor performance represents the results achieved by an auditor of a public accounting firm when the auditor performance audit on a client's financial statement; the result may be influenced by the quality and quantity of the audit (Mangkunegara, 2015). In auditing, an auditor must give the best reliable service possible. Auditor quality covers independence, competency, and professional judgment completed with good supervision, internal control system, audit evidence, as well as audit processes in line with the financial accounting standard of Indonesia applied in such a consistent manner along with full disclosure of fair financial statements. De Angelo (1981) defines audit quality by a two-dimensional definition: first, detecting misstatements and errors in the financial statement, and second, reporting these material misstatements and errors. Lee, Liu, and Wang (1999) define audit quality as a probability that an auditor will not make any audit reports under an unqualified opinion for financial statements containing errors. Audit quality refers to the probability of an auditor to find and report an error or bias in an accounting system of a client. Audit quality covers(1) input orientation, consisting of assignment of personnel by public accounting firms for contract agreement, consultation, supervision, appointment, professional development, promotion, and inspection; (2) process orientation, consisting of independency, compliance with audit standards, audit control, and competence; (3)output orientation, consisting of auditor performance, accepted and continuous cooperation with clients; and (3)due professional care (Tandiontong, 2015). The core principles of good governance at public accounting firms include fairness, transparency, accountability, responsibility, and independence. (1)Fairness means that public accountants must be independent and fair in assessing financial statements of clients for the interest of the clients and the accountability of the accountants themselves. (2) Transparency means that public accountants must give clear and thorough information related to the financial statements of the clients. (3) Accountability means explaining actors and accountability throughout the audit process, being accountable for the work done, and doing work completely. (4) Responsibility refers to compliance with accounting standards and a professional work ethic. (5) Independence means a public accountant must be objective in doing the work. Examples of the implementation of audit quality and good corporate governance in Indonesia can be seen in companies likeLippo Bank, Muzatek, KAI, KPMG Sidharta, Malinda Dee City Bank, and KAP Anderson. The international examples would be Enron and Wordcom. Therefore, external audits must consider audit quality under the professional standards of public accountants and good corporate governance under existing theories to increase auditor performance. Previous studies mentioned several measurements related to audit quality, including audit professionalism, audit process, and audit results (Neely, 2016). Meanwhile, good corporate governance includes aspects like fairness, transparency, accountability, responsibility, and independence (Nu Nu, 2016). Auditor performance is measured using validity, reliability, quantity, and timeliness (Karlbers dan Forgatty 1995).
2018
This research is conducted to know the current situation of Indonesia’s corporate governance and accounting information quality. Good corporate governance is one of the aspects that should be considered to obtain accounting information quality. Good corporate governance was measured by using corporate governance perception index (CGPI) while accounting information quality was measured using discretionary accruals (Jones Model). The result showed that good corporate governance has a significant effect on accounting information quality. Companies that practice good governance will eventually produce accounting information with quality.
Journal of Economics, Finance and Accounting Studies
The purpose of this study was to analyze the effect of profitability, leverage, institutional ownership on financial restatement with audit quality as a moderating variable in manufacturing companies listed on the Indonesia Stock Exchange for the period 2016-2020. The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange period 2016 to 2020. Sampling technique uses purposive sampling, obtained a sample of 129 companies. The data analysis method used is logistic regression. The results show that profitability has a negative effect on the probability of financial restatement. Leverage and institutional ownership do not effect on the probability of financial restatement. Audit quality could not moderate the influence of profitability, leverage and institusional ownership on the probability of financial restatement. Additional analysis reveals that institutional ownership is the difference between restatement and non restatement companies.
International Journal of Family Business Practices
This study aims to explain the factors affecting corporate governance and its implication on accounting information quality. Globally, there are many companies that collapsed due to misleading accounting information. Companies declares financial statements as free from errors or misstatements wherein fact it misleads financial statements users. There were 36 firm year observation being analyzed using PLS-SEM to process the available data. The results showed that audit committee and board of directors have significant effect on good corporate governance, while institutional ownership has no significant effect on good corporate governance. On the other hand, corporate governance has significant effect on accounting information quality. This is an indication that the quality of accounting information depends on the practice of good corporate governance. Strict compliance of rules and regulations lead to better governance of publicly listed companies. The originality of this rese...
Russian Journal of Agricultural and Socio-Economic Sciences, 2018
Good financial statements are the financial statements which have integrity of the information contained. Integrity of the financial statements is the extent to which the financial statements present financial information fairly, honestly and unbiased. Integrity of the financial statements is very important for the users, especially external parties that have lower information to make decisions. The phenomenon of financial scandals that still occur in Indonesia indicates a failure to form the integrity of financial statements to meet the information needs of users of financial statements. This research aims obtain empirical evidence about the influence of internal and external companies for integrity of the financial statements of companies listed in Indonesia Stock Exchange (IDX) in 2012-2016. Factors of companies, among others, institutional ownership by financial institutions, independent commissioners, audit committee, audit quality and audit tenure. This study is a quantitative study aimed to examine the effect of independent variables independent variable. The statistical method used was multiple linear regression analysis using SPSS 20. The method use purposive sampling and there are 39 samples that fulfill sample criteria. The results of this research indicate that institutional ownership by financial institutions and independent commissioner does not affect to integrity of the financial statements, while the audit committee a positive effect to integrity of the financial statements. Audit quality and audit tenure obtain results that audit quality does not affect to integrity of the financial statements and audit tenure positive effect to integrity of the financial statements. KEY WORDS Integrity, financial statements, institutional ownership, financial institutions, independent commissioners, audit committee, audit quality, audit tenure.