Open AccessRole of Audit Committee in Implementing Good Corporate Governance
Author(s) -
Endyk Muhammad Asror
Publication year - 2016
Publication title -
business and entrepreneurial review
Language(s) - English
Resource type - Journals
eISSN - 2252-4614
pISSN - 0853-9189
DOI - 10.25105/ber.v6i2.1136
Subject(s) - corporate governance , accounting , accountability , corporation , audit committee , business , audit , transparency (behavior) , good governance , order (exchange) , internal audit , public relations , political science , law , finance
A causal factor of susceptibility of the Indonesia Corporation in facing and econornic turbulence is the weak implementation of Good Corporate Governance (CCG) which comprises of fairness. transparency, accountability and responsibility. Those four principle should be applied simultaneously in order to get an optimum result in measuring a good corporate governance conduct. It seems that there is no strong basis to support the existence of an Audit Committee refers to Corporate Law No. 1/1995. Consequently, the existence of the Audit Committee may cause a legal dispute, for instance it could bring a negative impact when the main objective is to conduct good corporate governance in accordance with basic principles.