Email this article 
Aktivitas Komite Audit, Kepemilikan Institusional dan Biaya Audit
Abstract
This study investigates the influence of the audit committee activities and institutional ownership to the audit fees in Indonesia public companies. The research samples are manufacturing companies listed in Indonesia Stock Exchange for the period 2010 – 2013. There are 124 observations that meet the sample criteria, data are analyzed using Eviews 6.0. The results show that the audit committee activities which measured by the number of audit committee meetings have significant positive effect on the audit fees. Meanwhile, institutional ownership, diffused and blockholders institutional ownership do not significantly affect to the audit fees. However some of the control variables such as the number of wholly-owned subsidiaries, subsidiaries abroad, and audit quality have significant positive effect on audit fees, whereas leverage, loss and audit opinion have no significant effect on the audit fee.
Keywords
References
Abbott, L. J. and Parker, S. (2000). Auditor selection and audit committee characteristics. Auditing: A Journal of Practice & Theory, 19(2), 47–66.
Abbott, L. J., Park, Y., and Parker, S. (2000). The effects of audit committee activity and independence on corporate fraud. Managerial Finance, 26(11), 55–67.
Abbott, L., Parker, S., Peters, G., and Raghunandan, K. (2003a). The Association between audit committee characteristics and audit fees. Auditing: A Journal of Practice and Theory, 22, 17-32
Abbott, L., Parker, S., Peters, G., and Raghunandan, K. (2003b). An Empirical investigation of Audit Fees, Non-Audit Fees, and Audit Committee. Contemporary Accounting Research, 20, 215-234
Ismail, A., Kumba, J., and Peter. S. (2012). Multiple large ownership structure, audit committee activity and audit fees. Journal applied Accounting Research, 13(2), 100-121
Barkess, L. and Simnett, R. (1994). The Provision of Other Services by Auditors: Independence and pricing issues. Accounting and Business Research, 24(94), 99-108.
Beasley, M. S., Carcello, J. V., Hermanson, D.R., and Lapides, P.D. (2000). Fraudulent Financial Reporting: Consideration of Industry Traits and Corporate Governance Mechanisms. Accounting Horizons, 14(4), 441–454.
Becker, C. L., Defond, M., Jiambalvo, J., and Subramanyam, K. R. (1998). The Effect of Audit Quality on Earnings Management. Contemporary Accounting Research, 15, 1-24.
Carcello, J., Hermanson, D., Neal, T. L., Riley, R. A. (2002). Board Characteristics and Audit Fees, Contemporary Accounting Research, 19, 365-384.
DeZoort, F. T. (1997). An Investigation of Audit Committees' Oversight Responsibilities. Abacus (September), 208-227.
Emby, C. and Davidson, R. (1998). The Effects of Engagement Factors on Auditor Independence: Canadian Evidence. Journal of International Accounting, Auditing and Taxation, 7(Spring), 163-179.
Fields, L. P., Fraser, D. R. and Wilkins, M. S. (2004). An Investigation of The Pricing of Audit Services For Financial Institutions. Journal of Accounting and Public Policy, 23(23), 53-77.
Ferdinand, G. A., and Judy, T. S. L. (1998). A Test of The Free Cash Flow and Debt Monitoring Hypothesis: Evidence From Auditing Pricing. Journal of Accounting and Economics, 24, 219-237.
Ferdinand, G. A., and Judy, T. S. L. (2001). Free Cash Flow, Debt Monitoring, and Audit Pricing: Further Evidence on the role of Director Equity Ownership. Auditing: A Journal of Practice & Theory, 20,71-84.
Ghozali, I. (2011). Aplikasi Analisis Multivariate dengan Program IBM SPSS 19. 5th edition. Semarang: Badan Penerbit Universitas Diponegoro.
Gujarati, D. N. and Porter, D. C. (2009). Basic Eco-nometrics, 5th edition, McGraw-Hill.
Jensen, M. C. and Meckling, W. H. (1976). Theory of the Firm: Manajerial Behavior, Agency Cost and Ownership Structure. Journal of Financial and Economics, 3, 305-360.
Kane, G. D. and Velury, U. (2004). The Role of Insti-tutional Ownership In The Market For Auditing Services: An Empirical Investigation. Journal of Business Research, 57(9), 976-983.
Kirk, P. (1994). Strengthening The Professionalism of The Independent Auditor. Stamford, CT: Public Oversight Board.
Knapp, M. (1985). Audit Conflict: An Empirical Study of the Perceived Ability of Auditors to
Resist Management Pressure. The Accounting Review, 60, 202-211.
Lin, J.W. (2006). The Effect of Audit Committee Perfor-mance on Earnings Quality. Managerial Auditing Journal 21(9), 921-933.
Peraturan_Bapepam/IX.I.5_Pembentukan_dan_Pedoman_Pelaksanaan_Kerja_Komite_Audit.pdf http://www.martinaberto.co.id/download/
Menon, K. and Williams, J. D. (1994). The Use of Audit Committees For Monitoring. Journal of Accounting and Public Policies, 13(2), 121-139.
Monks, R. A. G. and Minow (2011). Corporate Governance, 4th edition, Blackwell Publishing
Mitra, S., Hossain, M., and Deis. D. R. (2007). The Empirical Relationship Between Ownership Characteristics And Audit Fees. Rev Quant Finan Acc, 28,257–285
Palmrose, Z. V. (1986). The Effect of Nonaudit Services on The Pricing of The Audit Services: Furter evidence. Journal of Accounting Research, 24, 405-421.
Raghunandan, K., Read, W. J., ans Rama, D. V. (2001). Audit Committee Composition, "Gray Directors," And Interaction with Internal Auditing. Accounting Horizons (June), 105-118.
Scott, W. R. (1997). Financial Accounting Theory. New Jersey: Prentice-Hall, Inc.
Sharma, V., Vic, N., and Barry, L. (2009). Determinants of Audit Committee meeting Frequency: Evidence from a Voluntary Governance System. Accounting Horrizons, 23 (3), 245-263.
Simunic, D. A. and Stein, M. T. (1996). The impact of litigation risk on audit pricing: A review of the economics and the evidence. Auditing: A Journal of Practice & Theory, 15 (Supplement), 119-134.
Spira, L. (1999). Independence in Corporate Gover-nance: The Audit Committee Role. Business Ethics: A European Review, 8(4), 262–273.
Tsui, J., Jaggi, B., and Gul, F. (2001). CEO Domina-tion, Discretionary Accruals and Audit Fees. Journal of Accounting, Auditing and Finance (Summer), 189-207.
Verschoor, C. C. (1993). Benchmarking the Audit Committee. Journal of Accountancy, 176, 59-64.
Watts, R. and Zimmerman, J.L. (1986). Positive Accounting Theory. New York: Prentice-Hall.
Widarjono, A. (2009). Ekonometrika Pengantar dan Aplikasinya. Edisi 3. Ekonosia: Fakultas Ekonomi UII.
The Journal is published by The Institute of Research & Community Outreach - Petra Christian University. It available online supported by Directorate General of Higher Education - Ministry of National Education - Republic of Indonesia.
©All right reserved 2016.Jurnal Akuntansi dan Keuangan, ISSN: 1411-0288, e-ISSN: 2338-8137
Supported by:
