Pengaruh Aktivitas Dan Financial Literacy Komite Audit Terhadap Jenis Manajemen Laba

DEBBY FITRIASARI SE. AK, M.S.M

Universitas Indonesia

ABSTRACT

Audit committee is one component of GCG which exists in the company. In running their task and function in connection with financial reporting, the members of audit committee is required to communicate actively with internal and external parties and to have financial literacy in order to be able to increase the quality of company’s financial statement.

This research is performed to find the effect of the audit committee’s effectiveness, in which the effectiveness is from the perspective of input and process, to the type of company’s earning management, whether it is efficient or opportunistic. The audit committee’s effectiveness is measured by the audit committee index from GCG survey results which is developed by Arsjah (2005). In addition to finding the effect of the audit committee’s effectiveness, this research is also performed to find the effect of components of audit committee’s activity, its meeting with company’s internal (SPI) and external auditor, and its financial literacy to the type of company’s earning management. More effective, active and financial literate the audit committees are expected to be able to make the company’s earning management more efficient.

This research finds that the audit committee’s effectiveness from the perspective of input and process is not able to make the company’s earning management more efficient. If we see from the component of audit committee’s activity, its meeting with SPI is not proved to make the company’s earning management more efficient. Whilst the audit committee’s meeting with external auditor and financial literacy have inconclusive results.

This research is also using Board of Commissioners (“BOC”) index and external auditor index from survey by Arsjah (2005), besides BOC’s percentage and auditor’s size, to find the effect of BOC’s and external auditor’s quality to the type of company’s earning management. This research finds that BOC index and external auditor index tend to make the company’s earnings management more efficient than the BOC’s percentage and auditor’s size. It shows that the BOC’s percentage and auditor’s size are not appropriate to be used as a proxy of BOC and audit quality.

Keywords : audit committee’s effectiveness, audit committee’s activity, financial literacy, earning management.

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The concept of good corporate governance (GCG), the more often mentioned by practitioners of business as one tool to prevent the financial big case that happened, for example the case of Enron (Alijoyo, 2002). One component that plays an important role in the process of implementation of GCG is an audit committee.

DeZoort et al. (2002) explains that an effective audit committee determined two things: 1) from the input side (the composition of the qualifications, competence and the amount of resources) and 2) of the process (must have a high work ethic). From the input and the process is expected to be an effective audit committee work so that it can produce an output in the form of financial statements, internal controls and risk management that can be trusted.

The financial statements of quality and trustworthy is a difficult thing to measure. One of the ways used by researchers to measure it is by seeing whether there is an earnings management practices by management in preparing its financial statements, a proxy for discretionary accruals (Xie et al. (2001), Chtourou et al. (2001), Bradbury et al. (2004), Parulian (2004), Wedari (2004)).

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*Simposium Nasional Akuntansi 10 Makassar

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