IJRR

International Journal of Research and Review

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Year: 2024 | Month: February | Volume: 11 | Issue: 2 | Pages: 239-251

DOI: https://doi.org/10.52403/ijrr.20240226

The Influence of Institutional Ownership, Audit Committee, Independent Commissioner, Auditors Switching on The Integrity of Financial Statement and Audit Quality as a Moderation Variable in Manufactured Companies Listed on The Indonesian Stock Exchange in 2017-2021

Vivi Novila Dachi1, Idhar Yahya2, Chandra Situmeang3

1,2,3Department of Accounting, Faculty of Economics and Business Universitas Sumatera Utara, Indonesia

Corresponding Author: Vivi Novila Dachi

ABSTRACT

This research aims to determine the influence of institutional ownership, audit committee, independent commissioners, and auditors switching on the integrity of financial reports in consumer goods industrial sector companies listed on the Indonesia Stock Exchange. This research also aims to determine whether audit quality can be used as a moderating variable for the relationship between institutional ownership, audit committee, independent commissioner, auditor switching, and financial report integrity.
The research design carried out was causal relationship research with a quantitative approach. The sample in this research was 35 companies in the consumer goods industry sector listed on the Indonesia Stock Exchange in 2017-2021. The type of data used in this research is secondary data. The sample research technique uses purposive sampling. The data analysis technique uses multiple linear regression analysis and a residual test for moderating variables.
The results of this study show that partially institutional ownership and auditors switching have a positive and significant effect on the company's financial performance. Meanwhile, the audit committee and independent commissioners do not significantly influence the integrity of financial reports. Other results also show that audit quality can moderate the influence of institutional ownership and change of auditors but cannot significantly moderate the audit committee and independent commissioners on the integrity of financial reports in manufacturing companies in the consumer goods industry listed on the Indonesia Stock Exchange.

Keywords: institutional ownership, audit committee, independent commissioner, change of auditor, financial report integrity, audit quality

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