Determinants of Integrity of Financial Statements in Indonesia

Alfina Maharani; Fransisco Pandapotan

doi:10.54408/jabter.v4i1.321

Authors

Alfina Maharani Universitas Mercu Buana
Fransisco Pandapotan Independent Researcher https://orcid.org/0000-0003-4945-3441

DOI:

https://doi.org/10.54408/jabter.v4i1.321

Keywords:

Integrity of Financial Statement, Independent Commissioners, Internal Control System, Audit Quality, Firm Size

Abstract

The importance of integrity of financial statements is to assist the stakeholders and investors make improved assessments and decisions. Financial statements are presented according to the standards of accounting. Therefore, this research aims to investigate the influence of corporate governance, internal control system and company size on integrity of financial statements, as well as to prove the inconsistently findings from the prior studies. In this research, the corporate governance is proxied by independent commissioners and audit quality. The population used in this research is all state-owned enterprises listed on Indonesia Stock Exchange period 2019-2021. Purposive sampling technique was used, resulting a grand total of 108 observations. Using the multiple linear regression by SPSS 25 version, the results of this research reveal that internal control system and firm size have positive and significant influences on the integrity of financial statements while independent commissioners and audit quality do not have any significant influences on the integrity of financial statements.

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