Articles

A Global Examination of Audit Quality and its Contribution to Transparent Financial Reporting

/in /by

In the context of corporate governance, this article offers a worldwide analysis of the connection between audit quality and financial reporting transparency.  The study synthesizes results from professional literature, regulatory frameworks, and scholarly research using document analysis and grounded theory to determine the factors that influence audit quality.  Alongside legislative actions and corporate governance procedures, important factors such audit firm size, auditor tenure, industry specialization, and audit fees are assessed.  According to the analysis, audit quality strengthens the independence, skill, and moral behaviour of auditors, which greatly increases the credibility and dependability of financial disclosures.  Simultaneously, it has been demonstrated that robust governance procedures, efficient regulatory supervision, and developing institutional and technology frameworks are necessary for financial reporting transparency.  The results demonstrate how audit quality and transparency are interdependent and how they work together to promote investor trust, accountability, and long-term market expansion.  By providing insights into how worldwide differences in audit procedures and governance contexts impact financial reporting transparency, the study advances both professional practice and scholarly discourse.

Board Diversity, Foreign Ownership, and Audit Quality: Their Influence on Financial Performance in Indonesian State-Owned Enterprises (2020-2024)

/in /by

This research explores the impact of board diversity, foreign ownership, and audit quality on the financial performance of Indonesian state-owned enterprises (SOEs) listed in the index of IDX BUMN20 for the period of 2020 –2024. As part of broader governance reforms in Indonesia, this research seeks to assess how these three governance elements contribute to financial outcomes within a unique organizational setting where commercial and public mandates often intersect. Using a panel data regression model with a sample of 18 SOEs across five years, it reveals that both foreign ownership and high-quality auditing are significantly linked to enhanced financial performance, while board diversity, although positively correlated, does not show statistical significance. These results suggest that while inclusive board structures may offer long-term governance benefits, measurable financial gains are more immediately driven by investor oversight and the credibility of external audits. The findings contribute to a deeper understanding of governance effectiveness in state-affiliated firms and offer practical guidance for enhancing performance through targeted reforms. This research underscores the importance of institutional support, regulatory consistency, and professional independence in shaping the future of Indonesia’s public sector enterprises.

Factors Affecting Audit Quality in Medan City Inspectorate

/in /by

This study aims to analyze the influence of competence, integrity and work experience on audit quality at the Medan City Inspectorate. The type of quantitative descriptive research is the design in this study. The quantitative descriptive research method is a conscious and systematic effort to obtain solutions to a problem and/or obtain more complete and in-depth information related to the phenomena that occur by following the research stages with a quantitative approach. This study emphasizes certain indicators that must be met. The population used in this study were all APIPs in the Medan City Inspectorate, totaling 55 people consisting of 34 functional auditor officials and 21 P2UPD officials. The data in this study used primary data collected by distributing questionnaires to all 55 respondents. The data analysis techniques used in this study were descriptive statistical analysis and PLS-SEM Statistical Analysis. Based on the calculation results, it was found that competence has a positive effect on audit quality at the Medan City Inspectorate. Integrity has a positive effect on audit quality at the Medan City Inspectorate. And work experience has a positive effect on audit quality at the Medan City Inspectorate.

Audit Quality Evidence from Indonesia: A Systematic Literature Review

/in /by

The audit quality produced by the auditor can be a benchmark in their work. This research aims to uncover factors influencing audit quality, especially in Indonesia. Articles were obtained using Google Scholar, and the publication period was between 2018-2023. The systematic literature review method uses Scientific Procedures and Rationales for Systematic Literature Reviews (SPAR-4-SLR). The results show that 157 articles are accredited by SINTA (Science and Technology Index) and registered with GARUDA (Garba Rujukan Digital). This study identifies basic theory, independent variables, intervening/moderating variables, variable measurement indicators, population and samples, sampling methods, data sources, measurement scales, data processing, respondent information, and auditors. Finally, the implications of this research are to provide direction and guidance for future research regarding audit quality in Indonesia for academics and researchers, government and professional associations, and practicing auditors.

The Effect of Corporate Social Responsibility Disclosure, Dividend Policy on Earning Management with Audit Quality as Moderation Variable in Listed Manufacturing Companies in Indonesian Stock Exchange (2018-2022)

/in /by

This research aims to test and prove empirically the effect of independent variables, namely corporate social responsibility disclosure, dividend policy on the dependent variable is earnings management and audit quality moderating variables. The research method used is quantitative research in the form of correlational research using panel data from company financial report taken at PT www.idx.co.id. The sampling technique in this research was purposive sampling with a total sample of 122 manufacturing companies listed on the Indonesia Stock Exchange for the 2018-2022 period. The data analysis method used is multiple linear regression using the EViews application. The research results found that corporate social responsibility has no effect on earnings management. Dividend policy has a negative effect on earnings management. Audit quality is unable to moderate the influence of corporate social responsibility on earnings management. Audit quality is unable to moderate the influence of dividend policy on earnings management. The Adjusted R2 value shows that 1.65% of earnings management can be explained by corporate social responsibility and the remaining 98.35% of dividend policy is influenced by other variables not examined in this research.

Entrenchment Effect and Corporate Governance: Audit Quality Analysis

/in /by

This study aims to examine the effect of entrenchment effect and corporate governance on audit quality as measured by accrual quality. This study uses manufacturing companies listed on the Indonesia Stock Exchange from 2018-2020 as a sample. The final sample of this study was 39 companies with a total of 117 observations. This study uses multiple linear regression as the method of analysis. The results of this study provide evidence that the entrenchment effect has a positive effect on audit quality. The results also show that when the company faces a high entrenchment effect from the controlling shareholder, the company still appoints a high-quality auditor to reduce agency conflict and to maintain the company’s reputation. This study also shows that corporate governance has a negative effect on audit quality. The findings of this study indicate that the controlling shareholder will choose a public accounting firm with high audit quality. This is done with the aim of giving a signal to non-controlling shareholders that the controlling shareholders have concern for them.