scholarly journals The Impact of Audit Committe Characteristics on Audit Quality

2020 ◽  
Vol 23 (3) ◽  
pp. 363
Author(s):  
Paradisa Sukma, Yustrida Bernawati
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Audit Fees ◽  
Audit Committees ◽  
Observation Data ◽  
Manufacturing Companies ◽  
Ols Regression ◽  
The Impact

This research was conducted to investigate the effect of audit committee characteristics on audit quality. The characteristics of the audit committee used in this study are the number of audit committees, number of audit committee meetings, audit committee education background, and audit committee experience while audit quality is measured using audit fees. This study uses manufacturing companies listed on the Indonesia Stock Exchange in 2016 - 2018 with 70 observation data and uses OLS regression. The results of this study indicate all four Audit Characteristics, only size and experience significantly influence audit quality. While audit meetings and education do not significantly affect audit quality. Likewise with the education that can not ensure the capabilities possessed by members of the audit committee. Overall, the effectiveness of the audit committee has no significant effect on audit quality.

scholarly journals Assessment of Factors Affecting Audit Quality: “A Study of Selected Companies Listed on the Ghana Stock Exchange”

2019 ◽  
Vol 9 (2) ◽  
pp. 436
Author(s):  
John Kwaku Mensah Mawutor ◽  
Borketey-La Francis B ◽  
Asamoah Douglas Obeng
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Negative Impact ◽  
Stock Exchange ◽  
Audit Fees ◽  
Audit Committees ◽  
Cross Sectional ◽  
Factors Affecting ◽  
Ghana Stock Exchange ◽  
The Impact

This study sought to establish the factors affecting audit quality in listed companies in Ghana. A cross-sectional method was used in the analysis in which a linear regression model was also used to establish the impact of the independent variables namely; auditor size, the existence of audit committee and the logarithm of the auditor fees on the independent variable audit quality. The logarithm of audit fees was taken to normalize the data. The dependent variable “leverage ratio” (total debts divided by total assets of the company) used to measure debt pressure by the companies and also used as a proxy for the audit quality because high debts in relation to company assets can lead to bankruptcy. Twenty- five (25) companies listed on the Ghana Stock exchange were used as the sample of the study. The results of the analysis indicated that logarithm of audit fees, existence of audit committee, and auditor size were all significant in influencing the leverage of the companies and thus audit quality. The size of audit firm had a negative impact on audit quality, while the companies that do not have audit committees are more likely to have poor audit quality. The logarithm of audit fees was positively related with the audit quality. It is recommended that audit fees should be regulated by The Institute of Chartered Accountants Ghana (ICAG) as well as taking action against audit companies which do not adhere to auditing standards and the officials of companies who are involved in misstating the financial statements and other financial records with the intention of concealing the true and actual facts of the financial position of the company.

scholarly journals KOMITE AUDIT SEBAGAI PEMODERASI PENGARUH WORKLOAD DAN MASA PERIKATAN AUDIT PADA KUALITAS AUDITe

2016 ◽  
Author(s):  
Theresia Julina Rusli ◽  
I Dewa Nyoman Wiratmaja
Keyword(s):  
Audit Committee ◽  
Sampling Method ◽  
Audit Quality ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Quality Audit ◽  
Final Sample ◽  
The Impact

This  research  aims to find empirical evidence  about the impact  of  workload  and  audit tenure  on  audit quality  and  using audit  committee  as  a  moderating  variable. This  research  focused  on  manufacturing companies  that  listed  on  the  Indonesia Stock Exchange. Sample was collected using   purposive sampling method and resulted 31  companies as a final sample.  The  data are analyzed by using Moderated Regression Analysis (MRA). The results of  this research indicate  that the  workload  has a negative  impact on  audit quality.  Audit tenure has a positive impact on audit quality. Audit committee reduces the negative impact of workload on audit quality. And audit committee reduces the positive impact of audit tenure on audit quality.

The impact of audit committee effectiveness on audit fees and non-audit service fees

2018 ◽  
Vol 31 (2) ◽  
pp. 174-191 ◽  
Author(s):  
Muhammad Jahangir Ali ◽  
Rajbans Kaur Shingara Singh ◽  
Mahmoud Al-Akra
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Audit Fees ◽  
Audit Committees ◽  
Regulatory Requirements ◽  
Content Type ◽  
Financial Expertise ◽  
The Difference ◽  
Accounting Expertise ◽  
The Impact

Purpose The purpose of this study is to examine the impact of audit committee effectiveness on audit fees and non-audit service (NAS) fees in a less regulatory environment. Design/methodology/approach The authors construct a composite audit committee effectiveness measure incorporating audit committee independence, diligence, size, financial expertise and the chairperson’s accounting expertise. Findings The authors find that audit committee effectiveness has a positive significant impact on both audit fees and NAS fees. This suggests that effective audit committees can hold auditors accountable resulting in better audit quality and consequently higher audit fees. Originality/value The link between more effective audit committees with higher NAS purchases can be explained in light of the difference in regulatory requirements providing audit committees with decision rights on the use of NASs, therefore approving more NAS and increasing NASF. Additional tests and robustness analyses confirm the results.

scholarly journals The Effect of Institutional Ownership and Audit Committee on Audit Quality with Financial Distress as Moderation: On Manufacturing Sector Companies Listed on The Indonesia Stock Exchange Period 2016-2020

2021 ◽  
pp. 1-8
Author(s):  
Mr Jombrik ◽  
Vika Alifta Tamami
Keyword(s):  
Financial Distress ◽  
Quantitative Research ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
The Impact

This study aims to analyze the effect of institutional ownership and audit committee on audit quality with financial difficulties as a moderation. This research was conducted on Manufacturing Companies in the Consumer and Industrial Goods Sector Listed on the Indonesia Stock Exchange for 2016-2020. The quantitative research method uses secondary data, namely the company's annual report that is the object of research. Analysis of the data used is logistic regression analysis. The results show that the direction of the influence of the institutional ownership variable on audit quality is positive, where institutional ownership has a significant effect on audit quality. Likewise, the direction of the impact of the audit committee on audit quality is positive but does not significantly affect audit quality. The results of the moderation show that Financial Distress can moderate institutional ownership in influencing audit quality. In contrast, after being moderated with the financial distress variable, the audit committee has a negative and significant direction, which means it can moderate the audit committee in influencing audit quality but in the opposite direction.

scholarly journals The Effects of Corporate Governance Practices on the Choice between Efficient and Opportunistic Earnings Management

2016 ◽  
Vol 11 (9) ◽  
pp. 1
Author(s):  
Tim Vervaat ◽  
Georgios Georgakopoulos ◽  
Konstantinos Z. Vasileiou ◽  
Ioannis Sotiropoulos
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Audit Quality ◽  
Audit Fees ◽  
Audit Committees ◽  
Outside Directors ◽  
Study Results ◽  
Governance Practices ◽  
The Impact

This study aims to explore the preferences of the publicly listed companies on the S&P 500 index regarding their earnings management (efficient or opportunistic) as well as the impact of the corporate governance practices (audit committee, board independence and audit quality) on their decision. Using two separate regression models, it was found that American firms listed on the S&P 500 index tend to conduct efficient earnings management, which is in line with the findings of prior research. Moreover, it emerged that the earnings management selection does not depend on the amount (high vs small) of audit fees paid by the companies. Additionally, the governance practice of employing more outside directors in the audit committees leads to more efficient earnings management. Finally, according to the study results, the impact of discretionary accruals on future profitability is not significantly related to the proportion of independent members on the board of directors.

scholarly journals AUDIT QUALITY, AUDIT COMMITTEE, INSTITUTIONAL OWNERSHIP AND INDEPENDENT DIRECTOR ON EARNING MANAGEMENT

2021 ◽  
Vol 13 (1) ◽  
pp. 42-50
Author(s):  
Ni Putu Desy Cristiana Yanthi ◽  
Dudi Pratomo ◽  
Kurnia Kurnia
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Audit Quality ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Earning Management ◽  
Independent Director ◽  
Observation Data ◽  
Manufacturing Companies ◽  
Quality Audit

This study aims to analyze audit quality, audit committees, institutional ownership and independent director on earnings management at manufacturing companies listed on the Indonesia Stock Exchange in 2012-2016. The sampling method use purposive sampling for 5 years so its obtained 160 observation data samples. The results in this study indicate that earnings management that occur is the type of income decreasing. Simultaneously audit quality, audit committee, institutional ownership and independent directors significantly influence on income decreasing. Partially, audit quality and independent director variables have a negative effect on income decreasing. While audit committee independence has a positive effect on income decreasing. Furthermore, audit quality, audit committees, and institutional ownership have no effect on earning management type income decreasing.

scholarly journals Impact of External Auditing Quality and Audit Committees on Accounting Conservatism and the Performance of Industrial Firms Listed at the Amman Stock Exchange

2020 ◽  
Vol 11 (4) ◽  
pp. 556
Author(s):  
Mahmod AL-Rawashdeh Abdalwahab ◽  
Riham Fathi ALkabbji
Keyword(s):  
Internal Control ◽  
Audit Quality ◽  
Stock Exchange ◽  
Audit Fees ◽  
Accounting Conservatism ◽  
Audit Committees ◽  
Industrial Firms ◽  
Amman Stock Exchange ◽  
The Impact ◽  
Quality Features

This study aims to investigate the impact of external auditing quality and audit committees on accounting conservatism and the performance of industrial firms listed at the Amman Stock Exchange. The study has relied on the industrial sector which comprised of 70 industrial firms, while the sample size comprised 54 firms. Audit quality has been addressed in terms of audit quality features (communication with world audit offices, keep client period, audit fees, accounting specialist in the customer industry), while audit committees quality has been analyzed (audit committees independence, audit committees expertise, audit committees meetings). The accruals model has been used to measure accounting conservatism. The firm`s performance has been measured through its market value. The study concluded that audit committees have no impact on accounting conservatism and firm`s performance, while audit quality features have a positive impact on accounting conservatism and firm`s performance. The study has recommended the need to activate the role of audit committees in public shareholding industrial firms since they positively have an impact on raising audit efficiency and control the regulate the firm`s internal control system.

scholarly journals Kualitas Audit Memediasi Pengaruh Independensi Auditor dan Komite Audit terhadap Kualitas Laba

2021 ◽  
Vol 31 (7) ◽  
pp. 1867
Author(s):  
Chandra Setiawan Darmo Suwito ◽  
Lilik Handajani ◽  
Ni Ketut Surasni
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Auditor Independence ◽  
Audit Committees ◽  
Manufacturing Companies ◽  
Government Regulations ◽  
Research Population ◽  
Independent Variable

The purpose of this study is to analyze audit quality mediating the effect of the independence auditors and audit committees on earnings quality in manufacturing companies listed on the Indonesia Stock Exchange 2015-2019. This research is a causality study with a quantitative approach. The research population was 144 companies which were selected to be 68 company samples. Dependent variable is earnings quality and the independent variable are independence of the auditor and the audit commitee and intervening variable is audit quality. This study uses path analysis. The results of the study found that audit quality did not mediate the effects of auditor and audit committee independence on earnings quality. The study found that supervision carried out by independent auditors and quality audits could hinder earnings management thereby increasing earnings quality. The audit committee was formed by the company as a formality to comply with government regulations. Keywords: Earnings Quality; Audit Quality; Auditor Independence; Audit Committee.

The impact of audit committee characteristics on internal audit professionalization: empirical evidence from Greece

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christina Vadasi ◽  
Michalis Bekiaris ◽  
Andreas G. Koutoupis
Keyword(s):  
Empirical Evidence ◽  
Audit Committee ◽  
Audit Quality ◽  
Research Question ◽  
Internal Audit ◽  
Audit Committees ◽  
Annual Reports ◽  
Substantial Impact ◽  
Content Type ◽  
The Impact

Purpose This paper aims to provide empirical evidence of the association between audit committee characteristics and internal audit quality through internal audit professionalization. Design/methodology/approach The investigation of the research question was based on 45 usable responses that were received from a survey of chief audit executives from firms listed on the Athens Stock Exchange and combined with publicly available information from annual reports. Findings The results indicate that audit committee characteristics (independence, diligence through frequent meetings and interaction with internal audit through valuation) influence internal audit professionalization. In addition, they demonstrate that internal audit professionalization is also influenced by CEO duality and firm’s external auditor. Practical implications The findings of this study have implications for audit committees wishing to improve their overall effectiveness, by identifying areas with substantial impact on internal audit quality. Moreover, regulators of corporate governance bodies can also benefit from the results to strengthen audit committee’s efficiency regarding internal audit function oversight. Originality/value The results add to the literature on the discussion of internal audit professionalization and complement the work of other researchers in the field of audit committee’s impact on internal audit quality/effectiveness. This study attempts to fill a gap in the literature on the effect of audit committee characteristics on internal audit professionalization, an element introduced from an institutional theory perspective.

scholarly journals Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

2016 ◽  
Vol 6 (2) ◽  
pp. 401 ◽  
Author(s):  
Aon Waqas Awan ◽  
Javed Ahmed Jamali
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Profit Margin ◽  
Audit Committees ◽  
Board Size ◽  
Good Decision ◽  
Return On Equity ◽  
The Impact

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

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