The Influence of Audit Committee Quality and Internal Auditor Objectivity Toward the Prevention of Fraudulent Financial Reporting (a Survey in BUMN of Indonesia)

Angrita Denziana
Journal article International Journal on Economics and Social Sciences • January 2015 Indonesia

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(English, 8 pages)

Abstract

Some cases both nationally and Internationally indicate the occurrence of irregularities in financial reporting due to the weakness of the company's internal control system, and the audit committee that has not functioned optimally, so that the resulting of the financial reporting is in low quality. This study used explanatory method. The data were collected through survey by distributing questionnaires to State Owned Enterprises (SOEs) in Indonesia. The respondents involve audit committee, internal auditors and financial directors. The data have been analyzed by using partial least square analysis modeling to test the hypotheses. The results concluded that, the quality of the audit committee and objectivity of internal auditor has an affect on the prevention of fraudulent financial reporting.

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International Journal on Economics and Social Sciences

The International Journal on Economics and Social Sciences (IJESS), published every six months, i... see more