This study aims to obtain empirical evidence of the effect of auditcommitteecharacteristics on business ethics disclosure in Indonesia. The AuditCommitteecharacteristics represented by the proportion of independent members of the AuditCommittee, the AuditCommittee size, the number of Audit Committte meetings, the education background of the AuditCommittee members, and the proportion of the AuditCommittee members with multi-directorship. Bussines ethics disclosure is measured using the items identified on Persons (2009).
occurrence of earnings management practices. Auditcommittee which conducts regular meetings according to the prescribed threshold is found to lessen the corporations‟ tendency in misstating their earnings (Abbott et al. 2000, p. 61). In fact, as the frequency of the meeting increase, there is likelihood that corporations‟ discretionary accruals will decrease (Xie et al. 2003, p. 310). This indicates that the meetings provide the means for the committee to be better performed their monitoring role. However, Bedard et al. (2004, p. 30) find that meeting frequency of the committee has no significant association with the possibility of the corporations to conduct earnings management aggressively. Similarly, Lin et al. (2006, pp. 929-930) discover that when testing the relationship between auditcommittee activity and earnings restatement the result shows that there is no significantly negative relationship between those two variables. Consistent with these studies, Saleh et al. (2007, p. 149) also find that the average frequency of four meetings per year does not lead to more effective monitoring of earnings management among Malaysian corporations. Nevertheless, they contend that the regularity of meeting could possibly indicate that the auditcommittee encounters more issues regarding the corporations‟ financial reporting (Saleh et al. 2007, p. 159). Hence, to some extent the activity of auditcommittee is not a strong factor in determining the likelihood of a company to manage earnings. There should be more than just conducting frequent meetings for an auditcommittee to be able to perform better, because the quality of the meetings is more important. The committee should spend more time in analysing the company‟s financial reports and addressing critical issues that have a tendency to facilitate earnings management practices.
Abstract: Financial reporting quality has been under scrutiny especially after the collapse of major com- panies. The main objective of this study is to investigate the audit committee’s effectiveness on the finan- cial reporting quality among the Malaysian GLCs following the transformation program. In particular, the study examined the impact of auditcommitteecharacteristics (independence, size, frequency of meet- ing 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 auditcommittee independence. Agency theory was applied to explain auditcommittee, as a monitoring mechanism as well as reducing agency costs via gaining competitive advan- tage 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.
Pucheta-Martinez, Maria C dan de Fuentes, Cristina, The Impact of AuditCommitteeCharacteristics on the Enhancement of the Quality of Financial Reporting: an Empirical study in theSpanish Context, Corporate Governance , Vol 15 Number 6, 1394-1412 Pratolo S, 2007, Good Corporate Governance dan Kinerja BUMN di Indonesia: aspek Audit
Previous research on the relation between audit fees and audit committees and the use of internal audit has been inconclusive and provided conflicting results. The results of the current study suggest that, in Australia, firms with higher audit fees are more likely to have an auditcommittee and use a greater level of internal auditing. The results also suggest that, of the auditcommitteecharacteristics tested in the study, the frequency of meetings appears to have the most influence on audit fees. However, our results also show a 3-way interaction effect between auditcommitteecharacteristics. Further exploration of this effect suggests that auditcommittee expertise is positively related to audit fees but only when both meeting frequency and independence are low. This result is consistent with auditcommittee members with accounting and finance expertise demanding a higher level of assurance in these circumstances, leading to an increase in audit fees. This points to a complementary relationship between independence, expertise and frequency of meetings and suggests that the role that these characteristics play in enhancing auditcommittee effectiveness with respect to the external audit is a complex one.
Melakukan segala sesuatu dengan kesungguhan dalam mecapai asa, Alhamdulillah penulis dapat menyelesaikan skripsi yang berjudul “Pengaruh Institutional Ownership, Board Independence, dan AuditCommittee Meeting Frequency Terhadap Financial Performance Perusahaan Farmasi yang Terdaftar Di Bursa Efek Indonesia” sebagai salah satu syarat untuk memperoleh gelar Sarjana Ekonomi Jurusan Manajemen Fakultas Ekonomi dan Bisnis Universitas Muhammadiyah Surakarta.
Dalam melakukan pengumpulan data, peneliti mewawancara beberapa sumber yang berbeda yaitu anggota komite audit (Kanaka Puradiredja dan Thomas H. Secokusumo) dan ketua komite audit (Inget Sembiring). Wawancara dilakukan dengan para angggota komite audit mengenai proses area dari KPMG AuditCommittee Institute. Wawancara dilakukan secara terstruktur dan direkam dengan mengadopsi pertanyaan wawancara dari Beasley et all (2009) yang telah disesuaikan, yaitu mengenai operasi dan organisasi komite audit, penaksiran risiko, pengendalian internal, proses audit, dan pelaporan keuangan (lampiran 1). Wawancara akan dilakukan terpisah antara ketua komite audit dan para anggota komite untuk mendapatkan hasil yang kredibel.
In this study it is also evident that Accrual Earnings Management acts as a substitute for Real Earnings Management in a family company rather than a non-family company, supporting the results of research conducted by Achleitner (2014). The role of Corporate Governance as an internal control proves to negatively affect real earnings management in non-family enterprises, and can further strengthen the negative influence of family relationships with real earnings management. Although there are some opposite results to predictive directions, the more legal experts on audit committees in family firms tend to perform real earnings management. And the results of sensitivity analysis show that in non-family companies more and more financial experts on the auditcommittee will be more likely to do real earning management. The role of Corporate Governance on the substitution of Accrual Earnings Management and Real Earnings Management in family firms also shows the strengthening of negative relationships.
Pursuant to the POJK No. 55/POJK.04/2015 regarding Establishment and Implementation Guidance of the AuditCommittee and Company letter No. 121/GEMS-CS/XI/2016 dated 29 November 2016 related to the retirement of Mr. R. Utoro as a member of CommitteeAudit of the Company, hereby the Company announce that as of 13 January 2017 the Board of Commissioners hereby approved the appointment of Mr. Leong Chee Keen (also known as Mr. Darren Leong) who will succeed Mr. R. Utoro as a member of CommitteeAudit of the Company whose for the remaining term of period, so that the CommitteeAudit of the Company are as follow :
Dalam penelitian ini menggunakan 3 variabel independen Institutional Ownership (INSTT), Board Independence (BOARD), dan AuditCommittee Meeting Frequency (FREQ) serta menggunakan variabel kontrol, untuk mengetahui pengaruh terhadap Financial Performance (FP) perusahaan Farmasi yang terdaftar di BEI. Dari hasil penelitian menunjukkan bahwa tidak selalu perusahaan yang memiliki total asset yang besar, memiliki kinerja yang baik. Hal ini mungkin dikarenakan pengaruh dari struktur organisasi masing-masing perusahaan.
On STDA model, the result showed that the Beta value of the variable existence of auditcommittee is (-0.045) with a probability value (-0,577). It means the hypothesis 5b is not supported, So the existence of an auditcommittee is not negatively affect earnings management model. It is consistent with research Veronica and Main (2005) that the existence of an auditcommittee does not affect the earnings management. It is possible, because this study measure the presence of an auditcommittee with dummy variables and not measures the characteristics of the auditcommittee members. These characteristics are auditcommittee activity (number of meetings with the function of the Internal Control System (SPI) and the external auditors, auditcommittee members competency, educational background and experience as a member of the auditcommittee.
Berdasarkan teori agensi, Dewan Komisaris sebagai pihak prinsipal yang meawakili pemegang saham untuk melakukan fungsi kontrol dalam mengendalikan prilaku oportunistik manajemen sehingga dapat membantu menyelaraskan kepentingan pemegang saham dan manajemen. Dewan komisaris dibantu oleh Komite Audit dalam melaksanakan tugas dan tanggungjawabnya dalam masalah pengawasan internal dan sistem pelaporan keuangn. Tanggung jawab Komite Audit sendiri adalah mengawasi hal-hal yang berpotensi mengandung resiko dalam sistem pengendalian internal serta memonitor proses pengaawasan yang dilakukan internal audit. Untuk memperkuat tanggung jawab Komite Audit, Komite Audit dibantu oleh interal audit dalam pemeriksaan dan penilaian tentang kecukupan dan efektivitas sistem pengawasan internal. Ketika internal audit menemukan masalah dalam pengenalian internal, temuan audit tersebut akan dilaporkan ke Presiden Direktur, CEO, dan Dewan Komisaris melalui Komite Audit dengan tembusan ke Direktur dan pimpinan Grup terkait.
Komite Audit adalah suatu bagian yang dibentuk oleh dewan komisaris untuk membantu dewan komisaris dalam menjalankan tugas. Adapun kriteria dari komite audit adalah minimal beranggotakan 3 (tiga) orang dan diketuai oleh bagian dari komisaris independen sedangkan anggota berasal dari luar emiten atau perusahaan publik dan minimal salah satu anggota memiliki keahilan dibidang keuangan dan akuntansi. Pembentukan komite audit di perusahaan yang go public ini memang diwajibkan sebagaimana tercantum dalam keputusan Ketua Bapepam-LK Nomor: Kep-643/BL/2012 tanggal 7 Desember 2012 tentang “Pembentukan dan Pedoman Pelaksanaan Kerja Komite Audit”. Pengukuran Komite Audit ini dengan cara melihat jumlah anggota komite audit yang ada di dalam suatu perusahaan. Variabel ini diukur dengan menggunakan variabel dummy, dimana jika suatu perusahaan memiliki komite audit minimal tiga orang atau lebih sesuai dengan peraturan BAPEPAM maka diberikan angka 1, namun jika jumlah anggota komite audit kurang dari tiga orang ataupun tidak memiliki komite audit diberikan angka 0
This study investigates the influence of several factors on probability of litigation against auditor. The factors derived from a theoretical and empirical analyses and economic incentives to bring lawsuit. This study identifies three factors into which cause litigation against auditor can be classified and are as follows: auditee characteristics, auditor characteristics and auditor-auditee relationship characteristics. This study uses logit regression to test the hypotheses. Samples are audit engagement for manufacture public company during 1996-2003. We use purposive sampling and get 171 audit engagements as samples. 78 audit engagement whose auditors are sued and 93 audit engagement whose auditors are not sued during 1996-2003.
The purpose of this research is to examine the role of audit committees to voluntary financial disclosure in Indonesia. AuditCommittee (AC) was measured by : AC size, proportion of independent member, proportion of member with accounting/finance education, the ferquency of meeting and the proportion of commited member. The sample of this study was 58 companies of Kompas 100 index in the Indonesian Stock Exchange within the year of 2009 and 2010. The data are drawn from the annual report in the website of the companies.
The term of "Corporate Governance" is subject to many varying definitions. Broadly viewed, the FCGI defines Corporate Governance as "a set of rules that define the relationship between shareholders, managers, creditors, the government employees and other internal and external stakeholders in respect to their rights and responsibilities, or the system by which companies are directed and controlled." (taken from Cadbury Committee of United Kingdom) In addition, the FCGI also points out that objective of Corporate Governance is "to create added value to the stakeholders." More narrowly, the terms of Corporate Governance can be used to describe just the role and practices of the board of executives/the board of directors, the board of commissioners, managers, and shareholders.
The link between auditor independence and the quality of financial reporting is not as explicit as the Cadbury Code assumes, but the Cadbury requirement for companies to establish audit committees does offer NEDs and auditors a mechanism through which they may demonstrate their independence. Although this is not directly observed beyond auditcommittee meetings, the public report of the existence of the committee is designed to influence those who have or are contemplating a relationship with the company. Additionally, the activities of the auditcommittee offer a further reassurance that the account of the company's activities may be relied upon, and that the auditors have, as a result of the protection of the auditcommittee, been able to report indepen- dently, free of any pressure from the management of the company. There is evidence that such re- assurance allows the company access to resources. Tsui et al. (1994) demonstrated that bankers would more readily advance loans where they perceived that auditor independence was assured by the existence of an auditcommittee.
4.1 Menyampaikan laporan tertulis kepada Dewan Komisaris paling sedikit sekali dalam satu kuartal, yang menyajikan aktivitas dan rekomendasi Komite Audit serta masalah-masalah signifikan yang membutuhkan perhatian Dewan Komisaris; jika ada;