PENGARUH PENGENDALIAN INTERNAL PERUSAHAAN DAN STRUKTUR CORPORATE GOVERNANCE TERHADAP FEE AUDIT

Abstract

The purpose of the study is to examine the influence of internal control function and corporate governance structures (major shareholders, independent commissioners and audit committee) on audit fees. Based on the agency theory, the separation between ownership and controlfunctions in organization leads to conflict ofinterests between them. So, the controlfunctions (internal control and corporate governance) are expected to be counter-balance towaratconflict of interests by external auditing. This study is replication of Hay's et al. research in 2008 and uses secondary datafrom annual reports ofmanufacturing companies which listed on Bursa Efek Indonesia in 2005-2007. This study uses purposive sampling method and uses multiple linear regression as the analysis instrument. Before being conducted the regression test, it is examined by using the classical assumption tests. The results show that internal auditfunctions have missing correlation on auditfees andaudit committee negatively related to auditfees. The two corporate governance structures (major shareholders andindependent commissioners) have significant positive relationship on auditfees. The results consistent with previous studies and consistent with the explanation that controls are complementary (controls, corporate governance and auditing are complement), an increase in one control will lead to an increase in the others. Keywords : Corporate governance, internal control, auditfees.