The Effect of Controlling Ownership and The Role of Board of Commissioners and Audit Committee On Audit Quality

• In Event: Auditing 1

Abstract

This research aims to investigate the effect of controlling shareholders and the effectiveness of Board Of Commissioners and Audit Committee on audit quality measured with AQMS (Audit Quality Metric Score).The results of this research provide evidence that alignment and entrenchment effect of controlling shareholders have positive effect on audit quality. The effectiveness of Board of Commissioners and Audit Committee provides positive effect on audit quality. For sensitivity analysis, by changing the tenure in AQMS to tenure regardless partner rotation, the result shows that the model is robust and provides consistent result.

Keywords: Alignment and entrenchment effect, audit quality, controlling shareholders, Board of Commissioners and Audit Committee

Authors

• Vidyata Annisa, Universitas Indonesia

• vera Diyanti, Universitas Indonesia

• Ratna Wardhani, Universitas Indonesia