Pengaruh karakteristik komite audit terhadap fraudulent financial reporting

Purpose : This study aimed to prove whether audit committees were proxied financial expertise and meetings related to fraudulent financial reporting. Research methodology: This type of research was quantitative descriptive with an evaluation model of Beneish M-Score and Altman Z-Score in predicting fraudulent financial reporting. The sample in this study was non-financial companies listed on the Stock Exchange with an observation period of 2010-2018. The technique of taking samples with purposive sampling obtained the number of observations 551. Data processing was done via SPSS through logistic regression. Results : The results of the study showed that the characteristic of the audit committee that influence the fraudulent financial reporting is financial expertise possessed by the members of the audit committee, while the number of audit committee meetings has no effect on the fraudulent financial reporting. Limitation: This study only used a sample of non-financial companies listed on the Indonesia Stock Exchange in 2010-2018 and met the criteria. The dependent variable fraudulent financial reporting measured through the Beneish M-Score and Altman Z-Score models. The independent variable was financial and or accounting expertise from the members of the audit committee and the Audit Committee Meeting. Contribution: Investors can consider this research in making decisions to be more careful in investing, as well as a reference for further research. The results of this study are expected to provide an overview and understanding of the role of the audit committee in suppressing fraudulent financial reporting using the Beneish M-Score and Altman Z-Score. Keywords: Fraudulent financial reporting, Audit committee characteristics, Leverage

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Pengaruh Karakteristik Komite Audit, Perusahaan dan Struktur Kepemilikan Terhadap Kecurangan Pelaporan Keuangan

SAR (Soedirman Accounting Review) Journal of Accounting and Business ◽

10.20884/1.sar.2016.1.2.304 ◽

2016 ◽

Vol 1 (2) ◽

pp. 50

Author(s):

Andrian Budi Prasetyo

Keyword(s):

Financial Reporting ◽

Ownership Structure ◽

Audit Committee ◽

Quantitative Methods ◽

Stock Exchange ◽

Secondary Data ◽

Annual Reports ◽

Fraudulent Financial Reporting ◽

Financial Expertise ◽

Firm Characteristic

This study examines the effect of audit committee characteristics, firm characteristic and ownership structure on the likelihood of fraudulent financial reporting. Audit committee characteristics is examined by audit committee financial expertise, meetings of the audit committee and the audit committee tenure. Firm characteristic is examined by the leverage, firm size, firm’s growth rate and external auditor. Ownership structure is examined by managerial ownership and institutional ownership. This research is using a quantitative methods research. This research is using secondary data that comes from the cases list of Otoritas Jasa Keuangan (OJK) and annual reports of the listed companies on the Indonesia Stock Exchange (IDX). Using a sample of 15 fraud and 15 non-fraud firms, we did not find a significant relation between the independent variabels and fraudulent financial reporting.

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Pengaruh Karakteristik Komite Audit, Perusahaan dan Struktur Kepemilikan Terhadap Kecurangan Pelaporan Keuangan

SAR (Soedirman Accounting Review) Journal of Accounting and Business ◽

10.20884/1.sar.2016.1.1.304 ◽

2016 ◽

Vol 1 (1) ◽

pp. 50

Author(s):

Andrian Budi Prasetyo

Keyword(s):

Financial Reporting ◽

Ownership Structure ◽

Audit Committee ◽

Quantitative Methods ◽

Stock Exchange ◽

Secondary Data ◽

Annual Reports ◽

Fraudulent Financial Reporting ◽

Financial Expertise ◽

Firm Characteristic

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Corporate Social Responsibility, Audit Committee Expertise, and Financial Reporting: Empirical Evidence from Korea

Sustainability ◽

10.3390/su131910517 ◽

2021 ◽

Vol 13 (19) ◽

pp. 10517

Author(s):

Haeyoung Ryu ◽

Soo-Joon Chae ◽

Bomi Song

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Reporting ◽

Audit Committee ◽

Earnings Quality ◽

Audit Committees ◽

Accounting Expertise ◽

Corporate Social

Corporate social responsibility (CSR) involves multiple activities and is influenced by the cultural and legal environment of the country in which a firm is located. This study examines the role of audit committees’ (AC) financial expertise in the relationship between CSR and the earnings quality of Korean firms with high levels of CSR. Using a multivariate analysis, it investigates whether the ACs that include members with accounting expertise, finance expertise, or supervisory expertise individually affect a firm’s decision making. It also examines how ACs with diverse expertise contribute toward improving the financial reporting quality of firms with high levels of CSR. The results demonstrate that when there is a certified accountant in the AC of a firm that practices CSR based on ethical motivation, the earnings management through discretionary accruals is more strictly controlled. This is more effective when the AC comprises members with accounting and non-accounting expertise. This finding implies that the AC plays a positive role in improving the accounting information quality of firms with CSR excellence. Moreover, while the role of accounting experts in the AC is important for maintaining high earnings quality, combining other types of expertise creates synergy.

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An Investigation on the Audit Committees Effectiveness: The Case for GLCs in Malaysia

Gadjah Mada International Journal of Business ◽

10.22146/gamaijb.5484 ◽

2011 ◽

Vol 13 (3) ◽

pp. 287 ◽

Cited By ~ 5

Author(s):

Nurul Nazlia Jamil ◽

Sherliza Puat Nelson

Keyword(s):

Earnings Management ◽

Financial Reporting ◽

Audit Committee ◽

Reporting Quality ◽

Audit Committees ◽

Financial Reporting Quality ◽

Financial Expertise ◽

Monitoring Mechanism ◽

The Impact

Financial reporting quality has been under scrutiny especially after the collapse of major companies. The main objective of this study is to investigate the audit committee’s effectiveness on the financial reporting quality among the Malaysian GLCs following the transformation program. In particular, the study examined the impact of audit committee characteristics (independence, size, frequency of meeting and financial expertise) on earnings management in periods prior to and following the transformation program (2003-2009). As of 31 December 2010, there were 33 public-listed companies categorized as Government-Linked Companies (GLC Transformation Policy, 2010) and there were 20 firms that have complete data that resulted in the total number of firm-year observations to 120 for six years (years 2003-2009). Results show that the magnitude of earnings management as proxy of financial reporting quality is influenced by the audit committee independence. Agency theory was applied to explain audit committee, as a monitoring mechanism as well as reducing agency costs via gaining competitive advantage in knowledge, skills, and expertise towards financial reporting quality. The study is important as it provides additional knowledge about the impact of audit committees effectiveness on reducing the earnings management, and assist practitioners, policymakers and regulators such as Malaysian Institute of Accountants, Securities Commission and government to determine ways to enhance audit committees effectiveness and improve the financial reporting of GLCs, as well as improving the quality of the accounting profession.

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Audit committee effectiveness and financial reporting timeliness

African Journal of Economic and Management Studies ◽

10.1108/ajems-11-2016-0163 ◽

2018 ◽

Vol 9 (1) ◽

pp. 34-55 ◽

Cited By ~ 6

Author(s):

Ahmed Atef Oussii ◽

Neila Boulila Taktak

Keyword(s):

Financial Reporting ◽

Audit Committee ◽

Emerging Market ◽

Listed Companies ◽

Audit Committees ◽

Future Research ◽

Governance System ◽

Content Type ◽

Financial Expertise ◽

The Impact

Purpose The purpose of this paper is to investigate whether there is any relationship between the effectiveness of an audit committee and the financial reporting timeliness of Tunisian listed companies as proxied by external audit delay (AD). Analysis focuses on five audit committee characteristics: authority, financial expertise, independence, size and diligence. Design/methodology/approach Empirical tests address 162 firm-year observations drawn from Tunisian listed companies during 2011-2013. Findings Multivariate analyses indicate that audit committees with members who have financial expertise are significantly associated with shorter AD. Thus, the results suggest that audit committee financial expertise contributes to the improvement of financial statements’ timeliness. Research limitations/implications The audit committee attributes examined in this study were based on DeZoort et al. (2002) framework. There could be other aspects of audit committee effectiveness such as audit committee tenure and audit committee chair characteristics, which were not addressed in the present study. Thus, future research may consider and examine these other components of audit committee effectiveness. Practical implications Findings have managerial implications. Companies can re-look into how to further improve audit committee composition in order to enhance the timeliness of financial reporting. The issues of audit committee effectiveness and timely reporting also affect regulators and policy makers since they need to play a role in the establishment of effective audit committees and the improvement of financial reporting timeliness. Originality/value This study is one of few that have examined the impact of audit committee effectiveness on ADs in an emerging market country. Findings lend credence to the belief that audit committee members’ financial expertise enhances the quality of financial reporting by firms in a North African market criticized for the lack of maturity of its corporate governance system (Klibi, 2015; Fitch Ratings, 2009).

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PENGARUH KUALITAS AUDIT TERHADAP FRAUDULENT FINANCIAL REPORTING DENGAN KOMITE AUDIT SEBAGAI VARIABEL MODERASI (Studi Empiris Pada Perusahaan Manufaktur yang terdaftar di BEI tahun 2016 – 2018)

PROSIDING SEMINAR NASIONAL CENDEKIAWAN ◽

10.25105/semnas.v0i0.5774 ◽

2019 ◽

pp. 2

Author(s):

Endah Catur Riyanti ◽

Hanna Christina W Putri ◽

Wikanto Artadi ◽

Haryono Umar

Keyword(s):

Empirical Evidence ◽

Financial Reporting ◽

Audit Committee ◽

Audit Quality ◽

Annual Report ◽

Stock Exchange ◽

Least Squares Regression ◽

Fraudulent Financial Reporting ◽

Insignificant Effect ◽

The Impact

This study aims to obtain empirical evidence the influence of Audit Quality on the Fraudulent Financial Reporting with Audit Committee as a Moderating Variable in Manufacture Companies listed in Indonesia’s Stock Exchange on 2016 – 2018. This paper uses generalised least squares regression to investigate the influence of Audit Quality on the Fraudulent Financial Reporting with Audit Committee as a moderating variable for a sample of manufacturing companies listed on Indonesia Stock Exchange over a three-year period from 2016 to 2018. The method of purposive sampling is used to gain the samples. The measurement of FFR is using Real Earning Management (Abnormal Cashflow). Audit Quality and Audit Committee are analyzed from the data within annual report. The result of the research findings show that Competence of Audit Committee has a positive insignificant effect on Fraudulent Financial Reporting. Meanwhile Audit Quality have a negative insignificant effect on Fraudulent Financial Reporting and Audit Committee strengthens positive insignificant of Audit Quality on Fraudulent Financial Reporting. The main contribution of this study is that it investigates Audit Committee strengthens influence of Audit Quality on Fraudulent Financial Reporting on Fraudulent Financial Reporting. Furthermore, this study is the initial paper to examine the impact of Audit Quality and Audit Committee on Fraudulent Financial Reporting in Indonesia.

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The Audit Committee’s Role Regarding the Provisions of The Foreign Corrupt Practices Act

Journal of Business Strategies ◽

10.54155/jbs.12.1.23-35 ◽

1970 ◽

Vol 12 (1) ◽

pp. 23-35

Author(s):

Alan Reinstein ◽

Albert Spalding Jr.

Keyword(s):

New York ◽

Financial Reporting ◽

Internal Control ◽

Audit Committee ◽

Stock Exchange ◽

Codes Of Conduct ◽

Audit Committees ◽

Foreign Corrupt Practices Act ◽

Corporate Codes Of Conduct ◽

Foreign Commerce

The Foreign Corrupt Practices Act (FCPA) of 1977, as amended in 1988, prohibits individuals and corporations from using bribes and kickbacks to enhance foreign commerce. Imposing stiff penalties for noncompliance, the FCPA includes internal control and accounting and recordkeeping provisions. Several studies show that corporate codes of conduct and other formal ethical policies help assure compliance with ethical policies, including the provision of the FCPA. Congress, the Securities and Exchange Commission (SEC), the courts, the American Institute of Certified Public Accountants (A/CPA), and many other financial statement users and preparers have endorsed the audit committee concept as a means to oversee the audit function and otherwise strengthen the financial reporting process. As such, audit committees should ascertain the effectiveness of the entity's internal control structure and compliance with the provisions of the FCPA. After highlighting the provisions of the FCPA, this study examines the extent of the audit committees' involvement in corporate compliance with the FCPA-focusing on corporate codes of conduct-based on a study of 152 audit committees whose securities are traded on the New York Stock Exchange (NYSE). Recommendations for strengthening the committees' and companies' roles in this area are also presented.

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ANALISIS PENGARUH KEBANGKRUTAN, AUDITOR SPESIALISASI INDUSTRI DAN CORPORATE GOVERNANCE TERHADAP FRAUDULENT FINANCIAL REPORTING

Jurnal Akuntansi Auditing dan Keuangan BALANCE ◽

10.25170/balance.v18i1.2297 ◽

2021 ◽

Vol 18 (1) ◽

pp. 27-51

Author(s):

Lamoza Ressidnarry Lamoza Ressidnarry ◽

Julianti Sjarief

Keyword(s):

Corporate Governance ◽

Financial Reporting ◽

Audit Committee ◽

Stock Exchange ◽

Selection Process ◽

Sample Selection ◽

Managerial Ownership ◽

Manufacturing Companies ◽

Fraudulent Financial Reporting ◽

The Difference

Fraudulent financial reporting often occurs in company management. Management who has a cooperation contract with the principal, there are often differences in interests between management and shareholders. The difference in interests makes it possible for management to commit fraud. Therefore, the factors that cause fraudulent financial reporting need to be known. This study aims to examine the effect of bankruptcy, auditors specializing in industry and corporate governance (consisting of managerial ownership, number of audit committee meetings and composition of independent commissioners). The population of this research is manufacturing companies in the consumer goods industry which are listed on the Indonesia Stock Exchange 2015-2018. Based on the purposive sampling method in the sample selection process, 38 companies were obtained as samples. Hypothesis testing is carried out by logistic regression analysis using the SPSS version 21 program. The results of this study are bankruptcy, managerial ownership and the composition of independent commissioners have an effect on fraudulent financial reporting. Meanwhile, auditors specializing in industry and the number of audit committee meetings have no effect on fraudulent financial reporting.

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Busyness, Expertise, and Financial Reporting Quality of Audit Committee Chairs and Financial Experts

Auditing A Journal of Practice & Theory ◽

10.2308/ajpt-50929 ◽

2014 ◽

Vol 34 (2) ◽

pp. 59-89 ◽

Cited By ~ 36

Author(s):

Paul N. Tanyi ◽

David B. Smith

Keyword(s):

Financial Reporting ◽

Audit Committee ◽

Reporting Quality ◽

Negative Association ◽

Audit Committees ◽

Financial Reporting Quality ◽

Committee Chairman ◽

Committee Chair ◽

Financial Expertise ◽

Reporting Process

SUMMARY We investigate how the number of audit committee chair positions and other audit committee financial expertise positions held by the audit committee chairman and the audit committee financial experts affects their ability to oversee a company's financial reporting process. We argue that these two audit committee roles are vital to the functioning of the audit committee and that their over commitment affects audit committee oversight and the firm's financial reporting quality. We observe a significant negative association between financial reporting quality and the number of audit committee chair positions and other audit committee financial expertise positions held by the audit committee chairman. We also find a significant negative association between financial reporting quality and the number of audit committee chair positions and other audit committee financial expertise positions held by audit committee financial experts. Firms with busy audit committee chairs or busy financial experts have significantly higher levels of abnormal accruals, and are more likely to meet or beat earnings benchmarks, which is consistent with the busyness hypothesis. This adverse effect, nonetheless, does not extend to nonaudit committee chairs and nonaudit committee financial experts. We interpret these results to indicate that the busyness of the audit committee chair and financial expert weakens the monitoring and oversight role that audit committees play in the financial reporting process.

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The Implications of the Audit Committee in the Financial Reporting of the Entities Listed on the Bucharest Stock Exchange

Audit Financiar ◽

10.20869/auditf/2021/161/005 ◽

2021 ◽

Vol 19 (161) ◽

pp. 156-171

Author(s):

Alin-Constantin DUMITRESCU ◽

◽

Ovidiu-Constantin BUNGET ◽

Valentin BURCA ◽

Oana BOGDAN ◽

...

Keyword(s):

Financial Reporting ◽

Internal Control ◽

Audit Committee ◽

Econometric Model ◽

Stock Exchange ◽

Audit Committees ◽

Decision Making Process ◽

Policies And Procedures ◽

Over Time

Over time social and economic events have reflected that the role of supervisory committees and especially of audit committees within entities is essential for ensuring sustainable development, increasing transparency and confidence. The purpose of the paper is to study the role of the audit committee in the financial reporting process of the companies listed on the Bucharest Stock Exchange in the period 2015-2019. The proposed econometric model shows that the management of the entity is oriented towards reducing deficiencies and non-compliances with internal policies and procedures, giving internal control a central role in the decision-making process.

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