The Influence Of Audit Committee Characteristics And Audit Firm Size On The Restatement Of The Financial Statements

LOIS, STEVEN REINALDO and SUARDI, HANSEN TIENDRY and Sany, (2022) The Influence Of Audit Committee Characteristics And Audit Firm Size On The Restatement Of The Financial Statements. In: Konferensi Regional Akuntansi (KRA) IX Tahun 2022, 13-07-2022 - 13-07-2022, Surabaya - Indonesia.

	PDF Download (384Kb)
	PDF Download (3965Kb)

Abstract

This studys objective is to look at the impact of audit committee characteristics and the size of the audit firm on the restatement of financial statements of financial sector companies listed on the Indonesia Stock Exchange for the period of 2016 to 2020. Measurement of audit committee characteristics is proxied by indicators of audit committee independence, audit committee size, number of audit committee meetings, audit committee expertise, and size of audit firm. This study uses firm size and firm performance as control variables. Meanwhile, the restatement of financial statements is measured using a dummy variable, where 1 if the company makes a restatement and 0 if not. The sample consists of 77 restatement firms and 77 control firms. There are 8 outliers among the 77 restatement firms, therefore once the outliers are removed, the total final sample studied is 138 observations (69 restatement firms and 69 non-restatement firms). Data were analyzed by logistic regression using SPSS software. According to the findings of this study, the size of the audit committee had a negative effect on the restatement of financial statements, while the independence of the audit committee, the number of audit committee meetings, the expertise of the audit committee, and the size of the audit firm did not have a negative effect on the restatement of the financial statements.

Actions (login required)