Pengaruh Fungsi Audit Internal Terhadap Kualitas Laporan Keuangan : Kualitas Dewan Komisaris sebagai Variabel Pemoderasi

Abstract

Since the IFRS convergence financial Accounting Standard was implemented, lack of study investigate the accounting quality. Therefore, this studyaims to investigate the accounting quality using accounting conservatism as proxy.This study specially try to examine the effect of the internal audit function of the quality of financial statements. In addition, Board Commissioners independence and Board commissioners Knowledge as moderating variables. Agency theory is used as premise of this research. Agency theory contend that the internal and external mechanism could reduce the management opportunistic behavior by assigning the supervisory board to oversee the management activity, including financial statement preparing. Manufacturing companies listed in Indonesia stock exchange is used to prove the hypotheses. Moderated regression analysis is applied to analyses the secondary data.The result show that the board commissioner knowledge and the Board commissionerindependence have moderate role between internal audit function and accounting quality. Company age also has a significant effect on accounting quality. This study contribute to the agency theory in term of the role of internal audit and board commissioner independence and knowledge

Keywords: Internal audit function, independent board,
 membership of the board of commissioners,
and the quality of financial reporting.