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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Main Authors: Andrew Christian Sudjono, Amelia Setiawan
Format: Article
Language:English
Published: Fakultas Ekonomi Universitas Sriwijaya 2024-10-01
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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author Andrew Christian Sudjono
Amelia Setiawan
author_facet Andrew Christian Sudjono
Amelia Setiawan
author_sort Andrew Christian Sudjono
collection DOAJ
description 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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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
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AT ameliasetiawan auditcommitteesroleseffectivenessevidencefromindonesia