Open AccessInfluence of Internal Audit On the Quality of Financial Statements
Author(s) -
Maulana Yusup,
Djajun Juhara
Publication year - 2020
Publication title -
jurnal ekonomi, bisnis dan entrepreneurship
Language(s) - English
Resource type - Journals
eISSN - 2443-0633
pISSN - 2443-2121
DOI - 10.55208/jebe.v14i2.205
Subject(s) - audit , internal audit , accounting , business , quality (philosophy) , financial ratio , sample (material) , quality audit , audit evidence , financial audit , actuarial science , joint audit , finance , philosophy , chemistry , epistemology , chromatography
The quality of financial reports is one of the critical aspects for capital owners in assessing the company's success in its business. Previous research has shown a positive relationship between internal audits and the presentation of quality financial statements. Based on the critical role of the presentation of financial statements, the researchers researched the influence of internal audits on the quality of financial statements. The researcher uses a quantitative approach in answering the problem formulation that set. The sample in this study were 59 employees of the audit department in two manufacturing companies in the city of Bandung. Data analysis used simple linear regression with the results showing a positive influence of internal audit on the quality of financial reports by 50.5%. In contrast, the rest was influenced by other factors not examined. The study results indicate that the better the internal audit is carried out, the better the quality of financial reports.