The effect of audit committee on audit opinion through earnings management as mediation variable
Juniarti; Fany; Devie
Afro-Asian J. of Finance and Accounting, Vol. 12, No. 6 (2022) pp. 790 - 803
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.