PENGARUH KUALITAS AUDIT TERHADAP MANAJEMEN LABA PERUSAHAAN MANUFAKTUR (Studi Empiris pada Emiten Manufaktur yang Listed di Bursa Efek Indonesia)

Abstract

The aims of this research at examining the influence of audit quality, such as, auditor’size and firm’s size on the earnings management practice in manufacturing companies listed in Indonesia Stock Exchange. The samples of this research is all of manufacturing companies existed in Indonesia in the year of 2004-2008 which were listed in Indonesia Stock Exchange. The research data were collected from manufacturing companies financial statement for the period of 2004 until 2008, from Indonesian companies Directory published by Indonesia Stock Exchange from 2004 until 2008, and also from each company’s websites. Random sampling method was used to determine research sample. From this method, we have collected 260 observations from 52 public banks companies/5 years. By using multiple regression analysis as the research method, the results shown that audit quality, namely, auditor’s size and firm’size didn’t influenced earnings management of manufacturing companies which have been detected by using specific Discretionary Accrual modified model from Jones (1991). Therefore, based on these results we can conclude that audit quality have not worked effectively to increase company’s performance.