Title: The effect of audit committee on audit opinion through earnings management as mediation variable

Authors: Juniarti; Fany; Devie

Addresses: Fakultas Ekomomi, Universitas Kristen Petra, Jl. Siwalankerto 121-131, Surabaya 60236, Indonesia ' Fakultas Ekomomi, Universitas Kristen Petra, Jl. Siwalankerto 121-131, Surabaya 60236, Indonesia ' Fakultas Ekomomi, Universitas Kristen Petra, Jl. Siwalankerto 121-131, Surabaya 60236, Indonesia

Abstract: This study aims to examine the mediating effect of earnings management on the influence of the audit committee on audit opinion. The research samples are listed companies in the IDX in the sectors of infrastructure, utilities, and transportation for 2011-2017. This selection of industrial sectors due to these sectors obtains many qualified audit opinions in the study period compared to other sectors. This study adds control variables, namely firm size and leverage. We measure audit committee using two approaches, the first is the total score of each component of audit committees including size, independence, expertise, and meeting and the second is the partial score of each attribute of the audit committee. The results show that the audit committee influences the audit opinion and there is a negative significant influence of earning management and audit opinion, but, this study fails to prove the mediating effect of earning management in the relationship of the audit committee and audit opinion.

Keywords: audit committee; earning management; audit opinion.

DOI: 10.1504/AAJFA.2022.127915

Afro-Asian Journal of Finance and Accounting, 2022 Vol.12 No.6, pp.790 - 803

Received: 12 Oct 2019
Accepted: 19 Jun 2020
Published online: 22 Dec 2022 *

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