Open AccessThe role of the audit committee to increase the influence of audit quality and internal control on earnings management
Author(s) -
Tikkos Sitanggang,
Titik Aryati,
Bambang Pamungkas,
Sukrisno Agoes
Publication year - 2022
Publication title -
technium social sciences journal
Language(s) - English
Resource type - Journals
ISSN - 2668-7798
DOI - 10.47577/tssj.v29i1.6051
Subject(s) - accounting , internal audit , earnings management , business , audit committee , walk through test , joint audit , quality audit , stock exchange , nonprobability sampling , audit evidence , chief audit executive , audit , earnings , finance , medicine , population , environmental health
This study aims to analyze the effect of audit quality and internal control on earnings management and the role of the audit committee as moderating variable in consumer goods manufacturing companies listed on The Indonesia Stock Exchange for the period 2015 to 2019. The novelty of this study is the measurement of audit quality with a score approach that represents the competence and independence dimensions of audit quality. In addition, the measurement of internal control uses the COSO score.The purposive sampling method resulted in 165 firms-years for analysis. The analytical method used is multiple regression with moderating variables using panel data. Based on the test results, it was found that audit quality has a negative effect on earnings management. Meanwhile, internal control has no effect on earnings management. Furthermore, the results of this study also found that the audit committee was unable to moderate the effect of audit quality and internal control on earnings management.