Audit Committee’s Roles & Effectiveness: Evidence from Indonesia
Financial statement manipulation that still occurring nowadays in Indonesia leads the following issue of how audit committee’s functioning within a corporation. This study questions whether audit committee has certain significant role as stated by OJK or just a formality to obey the regulation set...
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| Format: | Article |
| Language: | English |
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Fakultas Ekonomi Universitas Sriwijaya
2024-10-01
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| Series: | Sriwijaya International Journal of Dynamic Economics and Business |
| Online Access: | https://sijdeb.unsri.ac.id/index.php/SIJDEB/article/view/579 |
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| _version_ | 1850284941399556096 |
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| author | Andrew Christian Sudjono Amelia Setiawan |
| author_facet | Andrew Christian Sudjono Amelia Setiawan |
| author_sort | Andrew Christian Sudjono |
| collection | DOAJ |
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Financial statement manipulation that still occurring nowadays in Indonesia leads the following issue of how audit committee’s functioning within a corporation. This study questions whether audit committee has certain significant role as stated by OJK or just a formality to obey the regulation set by the government. Therefore, this research analyzes the audit committees’ effectiveness in Indonesia by using POJK No. 55/POJK.04/2015 as the basis of measurement. To examine the audit committee’s effectiveness, this research gathers primary data by distributing a questionnaire to audit committee’s in listed companies in Indonesia and to Ikatan Komite Audit Indonesia (IKAI). Based on the responses, the data is then analyzed by using the SEM-PLS approach. It is found that audit committee diligence in audit and decision-making areas significantly increases the audit committee activity. Moreover, audit committee activity and responsibility in internal audit, regulatory compliance, and risk management significantly influence the audit committee’s effectiveness.
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| format | Article |
| id | doaj-art-5584cb2b4c544a3faedd7717f0309d19 |
| institution | OA Journals |
| issn | 2581-2904 2581-2912 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | Fakultas Ekonomi Universitas Sriwijaya |
| record_format | Article |
| series | Sriwijaya International Journal of Dynamic Economics and Business |
| spelling | doaj-art-5584cb2b4c544a3faedd7717f0309d192025-08-20T01:47:25ZengFakultas Ekonomi Universitas SriwijayaSriwijaya International Journal of Dynamic Economics and Business2581-29042581-29122024-10-018210.29259/sijdeb.v8i2.183-208Audit Committee’s Roles & Effectiveness: Evidence from IndonesiaAndrew Christian Sudjono0Amelia Setiawan1Universitas Katolik ParahyanganUniversitas Katolik Parahyangan Financial statement manipulation that still occurring nowadays in Indonesia leads the following issue of how audit committee’s functioning within a corporation. This study questions whether audit committee has certain significant role as stated by OJK or just a formality to obey the regulation set by the government. Therefore, this research analyzes the audit committees’ effectiveness in Indonesia by using POJK No. 55/POJK.04/2015 as the basis of measurement. To examine the audit committee’s effectiveness, this research gathers primary data by distributing a questionnaire to audit committee’s in listed companies in Indonesia and to Ikatan Komite Audit Indonesia (IKAI). Based on the responses, the data is then analyzed by using the SEM-PLS approach. It is found that audit committee diligence in audit and decision-making areas significantly increases the audit committee activity. Moreover, audit committee activity and responsibility in internal audit, regulatory compliance, and risk management significantly influence the audit committee’s effectiveness. https://sijdeb.unsri.ac.id/index.php/SIJDEB/article/view/579 |
| spellingShingle | Andrew Christian Sudjono Amelia Setiawan Audit Committee’s Roles & Effectiveness: Evidence from Indonesia Sriwijaya International Journal of Dynamic Economics and Business |
| title | Audit Committee’s Roles & Effectiveness: Evidence from Indonesia |
| title_full | Audit Committee’s Roles & Effectiveness: Evidence from Indonesia |
| title_fullStr | Audit Committee’s Roles & Effectiveness: Evidence from Indonesia |
| title_full_unstemmed | Audit Committee’s Roles & Effectiveness: Evidence from Indonesia |
| title_short | Audit Committee’s Roles & Effectiveness: Evidence from Indonesia |
| title_sort | audit committee s roles effectiveness evidence from indonesia |
| url | https://sijdeb.unsri.ac.id/index.php/SIJDEB/article/view/579 |
| work_keys_str_mv | AT andrewchristiansudjono auditcommitteesroleseffectivenessevidencefromindonesia AT ameliasetiawan auditcommitteesroleseffectivenessevidencefromindonesia |