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

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