THE EFFECT OF AUDIT QUALITY, AUDIT TENURE AND GOOD CORPORATE GOVERNANCE ON THE INTEGRITY OF FINANCIAL REPORTS
DOI:
https://doi.org/10.32493/ebic.v2i1.51471Keywords:
Auditor Quality, Audit Tenure, Good Corporate Governance, Financial Report IntegrityAbstract
This study was conducted by analyzing the financial statements of companies in the LQ45 sector listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2023. The sample used in this study was 18 LQ45 sector companies listed on the Indonesia Stock Exchange during the period 2019 to 2023 using a purposive sampling technique. The panel data regression method was used as the research methodology in this study. Analysis of the research results using the help of EViews 10 Student Version Lite software. The results of this study indicate that Audit Quality partially has no effect on the Integrity of Financial Statements, Audit Tenure partially has an effect on the Integrity of Financial Statements, Company Size partially has no effect on the Integrity of Financial Statements, and simultaneously Audit Quality, Audit Tenure, and Good Corporate Governance have an effect on the Integrity of Financial Statements.
References
Ayem, S., & Yuliana, D. (2019). The Influence of Auditor Independence, Audit Quality, Earnings Management and Independent Commissioners on the Integrity of Financial Reports (Case Study of Banking Companies Listed on the IDX for the Period 2014 - 2017). Akmenika Journal of Accounting & Management. Vol. 16. No. 1, 198, 200-205.
Ayem, S., & Yuliana, D. (2019). The Influence of Auditor Independence, Audit Quality, Earnings Management and Independent Commissioners on the Integrity of Financial Reports (Case Study of Banking Companies Listed on the IDX for the Period 2014 - 2017). Akmenika Journal of Accounting & Management. Vol. 16. No. 1, 198, 200-205.
Anggoro, DT and Septemberizal, S. (2023). The effect of independence, time budget pressure, competence, audit risk, on audit quality with ethics as a moderator. Proceedings of the Scientific Conference on Accounting, pp. 1–19.
Ainiyah K., Darmayanti N. & Rosyida IA 2021. (2021). The Effect of Independence, Good Corporate Governance, and Audit Quality on the Integrity of Financial Reports. Journal of Accounting and Taxation Analysis, JAAP, Vol. 5 No. 2, pp. 196-208.
Santoso, SD, & Andasari, PR (2022). The Influence of Managerial Ownership, Company Size, and Audit Quality. OWNER: Research and Accounting Journal, 6(1), 690-700. doi:https://doi.org/10.33395/owner.v6i1.585
Btr, KA, & Hendratno, H. (2022). The influence of corporate governance, audit quality, and company size on the integrity of financial reports (a study of food and beverage sub-sector companies listed on the Indonesian Stock Exchange in 2016-2020). J-MAS (Journal of Management and Science), 7(2), 912–919.
Brigham, F and Houston, J. (2006). Fundamentals of Financial Management. 10th Edition, Book 1. Jakarta: Salemba Empat
Basuki, A., & Prawoto, N. (2017). Regression Analysis in Economic & Business Research: Equipped with SPSS & Eviews Applications. Jakarta: PT. Raja Grafindo Persada
Christiana, A., Widaryanti, W., & Luhgiatno, L. (2021). Reputation of Public Accounting Firm & Audit Committee on Financial Report Integrity Moderated by Independent Commissioners & Institutional Ownership. Accounting Perspectives, 4(1), 59–74. https://doi.org/10.24246/persi.v4i1.p5 9-74.
Fathin, L., & Arif, A. (2023). The Effect of Company Size, Audit Tenure, Intellectual Capital, Financial Distress, and Audit Quality on Financial Report Integrity. Trisakti Journal of Economics, 3(2), 3765–3774. https://doi.org/10.25105/jet.v3i2.18072
Fitriana, AI (2018). The Effect of Information Asymmetry and Company Size on Earnings Management. Balance Vocation Accounting Journal, 1(2), 1. https://doi.org/10.31000/bvaj.v1i2.472 .
Gayatri, Ida Ayu Sri and I Dewa Gede Dharma Suputra. (2013). The Influence of Corporate Governance, Company Size and Leverage on the Integrity of Financial Reports. E-Journal of Accounting, Udayana University
Ghozali, Imam. (2018). "Multivariate Analysis Application with IBM SPSS 25". Semarang: Diponegoro University Publishing Agency
Hasanuddin. (2019). THE INFLUENCE OF GOOD CORPORATE GOVERNANCE, AND QUALITY OF AUDIT AGAINST THE INTEGRITY OF THE FINANCIAL STATEMENTS. International Journal Economics Management and Social
Science, eISSN 2614-3828 p-ISSN 2614- 3887.
Ivana, F., Darwanis and M. Arfan. (2020). The Effect of Human Resource Competence, Internal Auditor Role, Utilization of Information Technology and Application of Financial Accounting System on Formation Value of Regional Government Financial Reporting (A Study of the Regional Government Work Unit (SKPD), Aceh Province, Indonesia). East African Scholars Journal of Economics, Business and Management, 3(5), 446-449
Jensen, M. C and Meckling, WH (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, October, 1976, V. 3, No. 4, pp. 305-360.
Kurnia, L., & Lastanti, HS (2024). Factors Affecting the Integrity of Financial Reports. Journal of Management, conomics and Entrepreneurship, 2(1).
Kieso, Donald E, Jerry J, Weygandt, Terry D. Warfield, (2010).Intermediate Accounting. IFRS Edition, Volume Two. Jakarta,
Kurniawan, E., & Fahrunniza, I. (2022). The Influence of Independent Commissioners, Institutional Ownership and Audit Committee on Financial Report Integrity. Performance, 5(01), 26–36. https://doi.org/10.34005/kinerja.v5i01 .2220
Lentina Simbolon, P. (2020). The Influence of Macroeconomic Factors on Stock Price: The Case of Real Estate and Property Companies Lentina Simbolon and Purwanto. Volume34, 19–39. https://doi.org/10.1108/S0196-382120170000034010
Purba, J., & Fuadi, A. (2023). The Influence of Intellectual Capital, Leverage, Audit Tenure and Profitability on the Integrity of Financial Reports. Scientific Journal of Unity Management, 257-266.
Pratika, I., & Primasari, NH (2020). The Influence of Independent Commissioners, Audit Committee, Company Size, Leverage and KAP Size on the Integrity of Financial Reports. Journal of Accounting and Finance, 9(2), 109–120. Machdar, NM, & Nurdiniah, D. (2019). The Influence of Reputation of Public Accounting Firms on the Integrity of Financial Statements with Corporate Governance as the Moderating Variable. Binus Business Review, 9(3), 177– 186. https://doi.org/10.21512/bbr.v9i3.4311
Mahendra, KY, Dewi, AAAET, & Rini, GAIS, 2022. "The Influence of Internal Audit and Internal Control Effectiveness on Fraud Prevention at State-Owned Banks in Denpasar". Warmadewa Accounting Research Journal, 2(1), 1–4. Novianti, S., & Isynuwardhana, D. (2021). The Influence of Managerial Ownership, Institutional Ownership, ndependent Commissioners, and Leverage on Report Integrity Finance. Journal of Accounting and Finance Education (JPAK), 9(3), 64–73
Nurdiniah, D., & Pradika, E. (2019). Effect Of Good Corporate Governance, KAP Reputation, Its Size And Leverage On Integrity Of Financial Statements. International Journal of Economics and Financial Issues, 2017, 7(4), 174-181, ISSN: 2146-4138.
Pratiwi, CIE, & Wiratmaja, IDN (2018). The Effect of Audit Tenure and Operational Complexity on Audit Delay of Mining Companies at BEI 2013-2016. E-Journal of Accounting, 24(3), 1964-1989.
Rosliana, DE, Abdul, RD, & Usmar, D. (2019). The Influence of Audit Tenure and Corporate Governance Structure on the Integrity of Financial Reports. Akuntanpedia, 1(1), 1–29.
Rosliana, DE, Abdul, RD, & Usmar, D. (2019). The Influence of Audit Tenure and Corporate Governance Structure on the Integrity of Financial Reports. Akuntanpedia, 1(1), 1–29.
Santoso, SD, & Andarsari, PR (2022). The Effect of Managerial Ownership, Company Size, and Audit Quality on Financial Report Integrity. Owner: Research & Accounting Journal.
Soraya, I., & Harto, P. (2014). The Influence of Accounting Conservatism on Earnings Management with Managerial Ownership as a Moderating Variable. Diponegoro Journal Of Accounting, 3(3), 1–11.
Sucitra, Karina, Retna Sari, and Shinta Widyastuti. “The Effect of Earnings Management, Audit Tenure, and Independent Commissioners on the Integrity of Financial Reports.” CORRELATION (National Research Conference, Management, and Accounting) 2 (2020): 713–27.
Soraya, I., & Harto, P. (2014). The Influence of Accounting Conservatism on Earnings Management with Managerial Ownership as a Moderating Variable. Diponegoro Journal Of Accounting, 3(3), 1–11.
Sari, Ratna Mirda, & Sri Rahayu. 2014. “Analysis of the Influence of Auditor Independence, Corporate Governance Mechanism, Audit Quality, and Earnings Management on the Integrity of Financial Reports.” National Seminar on
Economics and Business: 1–7
Sugiyono (2019), Quantitative, Qualitative, and R&D Research Methods, 2nd Edition Bandung: Alfabeta.
Saad, B., & Abdillah, AF (2019). Analysis of the Influence of Company Size, Leverage, Audit Tenure, and Financial Distress on the Integrity of Financial Reports. Journal of Management Science, 15(1), 70–85. Selviana, S., & Wenny, CD (2021). The Effect of Audit Tenure, Firm Size, and Auditor Change on Financial Report Integrity (Empirical Study of Transportation Sector Companies Listed on the Indonesia Stock Exchange in 2017-2019). Accounting Student Research Publication, 2(2), 169–183.
Susiana and Arleen Herawaty. 2007. Analysis of the Influence of Independence, Corporate Governance Mechanism, and Audit Quality on the Integrity of Financial Reports. Collection of Materials for the 10th National Accounting Symposium at Hasanudin University, Makassar.
Tamara, AN and Kartika, A. (2021). The Influence of Institutional Ownership, Managerial Ownership, and Audit Committee on the Integrity of Financial Reports. Scientific Journal of Accounting Students. 12(2). 647-656. https://ejournal.undiksha.ac.id. Accessed on May 13, 2022.
Wahyuni, AS (2017). The Influence of Independence, Professional Ethics and Auditor Integrity on Audit Quality in Public Accounting Firms in the Special Region of Yogyakarta. Thesis.
Wulandari, RD (2022). The Influence of KAP Reputation, Audit Fee, Audit Tenure, and Workload on Audit Quality in Manufacturing Companies. Doctoral Dissertation, Hayam Wuruk Perbanas University Surabaya.
