SUATU ANALISA PENGARUH KOMITE AUDIT DAN UKURAN PERUSAHAAN TERHADAP MANAJEMEN LABA

Abstract

Financial reports are important not only because it represents the achievements and performance of the company and management, but also as the main source of information for users of information in assisting decision making. Earnings management is one of the efforts made by management in influencing financial statement information so that the financial information submitted is in accordance with the interests of the stakeholders. This study aims to examine the influence of independence of the audit committee, the size of the audit committee, the frequency of audit committee meetings and the size of the company on earnings management in banking companies listed on the Indonesia stock exchange and Malaysia stock exchange. This study uses secondary data, in the form of annual company reports as the object of observation, by downloading those reports from in website of each country listed on the stock exchange. The analytical tool used in this study is Partial Least Squares Regression. The analytical tool used is a Partial Least Squares Regression. The results of this study indicated that the independence of the audit committee, the size of the audit committee has no significant negative effect on earnings management, while the frequency of audit committee meetings, company size has no significant positive effect on earnings management. The correlation results shown that earnings management excercised by company’s management through presenting large earnings reports due to the lack of an independent audit committee member and the small size of the audit committee, so the supervisory function in the financial statements was less effective. The function of the audit committee in the supervision and implementation of adequate internal control needs to be an important concern of banking companies, so that high-quality company financial reports and financial information can be relied upon.