Pengaruh Independensi dan Efektivitas Komite Audit terhadap Kualitas Labs

Abstract

The purpose of this studv is to examine the characteristic of audit committee influence to earning quality. Blue Ribbon Committee (BRC) on Improving the Effectiveness ofCorporate Audit Committee (1999) argued that an audit committees would enhance financial reporting process. The BRC report raised the awareness of certain attributes of audit committee members as particularly important, specificallyfinancial literacy, meetingfrequency, commit sufficient time to the committee andabove all independence (BRC, 1999). The threefirst attribute is the effectiveness ofaudit committee. This study is carried out by doing content analysis on annual report corporation especially corporate governance report, and is analyzed by regression. Earning quality used in this study are earning informativeness and earning transparency. Earning informativeness is measured by Earning Response Coefficient (ERC) and earning transparency is measured by using degree of mispricing (overpricing) of accruals. The result of this study provides evidence that earning response coefficient will increase by the presence an audit committee members are independent andfinancially literate . While, the overpricing of accrual will be lower when the audit committee members are independent, financially literate and meet regularly. There is no evidence that independency has bigger influence on earning quality than audit committee effectiveness. Overall, these result provides evidence that independent and effective audit committees enhance the quality of reported earnings. Keywords : Audit committee, corporate governance, earning quality, earning response coefficient, mispricing (overpricing) ofaccrual.