Research Article
Accounting Conservatism: The Implementation of Internal and External Governance
@INPROCEEDINGS{10.4108/eai.12-7-2023.2340955, author={Salsa Dewi Irmayanti and Maria Goreti Kentris Indarti and Jacobus Widiatmoko}, title={Accounting Conservatism: The Implementation of Internal and External Governance}, proceedings={Proceedings of the 2nd International Conference of Multidisciplinary Studies, ICMS 2023, 12 July 2023, Semarang, Indonesia}, publisher={EAI}, proceedings_a={ICMS}, year={2023}, month={12}, keywords={accounting conservatism good governance audit quality}, doi={10.4108/eai.12-7-2023.2340955} }- Salsa Dewi Irmayanti
Maria Goreti Kentris Indarti
Jacobus Widiatmoko
Year: 2023
Accounting Conservatism: The Implementation of Internal and External Governance
ICMS
EAI
DOI: 10.4108/eai.12-7-2023.2340955
Abstract
In times of uncertainty a company may consider when preparing its financial statements as a prudent accounting principle. The purpose of this research is to: explore and analyze the impact of independent commissioners, audit committees, and audit quality on accounting conservatism, and to examine the moderating role of audit quality in this role. This study uses control variables, size and return on assets. The study used objects from manufacturing companies listed on the Indonesian Stock Exchange (IDX) in 2019-2021. The hypothesis of this study was tested by ordinary least squares (OLS) regression. The research results show that the audit committee and audit quality have a positive effect on accounting conservatism. The Independent Commission has nothing to do with accounting conservatism. This result indicates that audit quality cannot reconcile the relationship between independent commissioners, audit committee and conservatism in accounting. A control variable test shows return on assets has a positive effect on accounting conservatism. On the other hand, size does not affect conservatism in accounting.