Main Article Content

Abstract

Financial statement manipulation that still occurring nowadays in Indonesia leads the following issue of how audit committee’s functioning within a corporation. This study questions whether audit committee has certain significant role as stated by OJK or just a formality to obey the regulation set by the government. Therefore, this research analyzes the audit committees’ effectiveness in Indonesia by using POJK No. 55/POJK.04/2015 as the basis of measurement. To examine the audit committee’s effectiveness, this research gathers primary data by distributing a questionnaire to audit committee’s in listed companies in Indonesia and to Ikatan Komite Audit Indonesia (IKAI). Based on the responses, the data is then analyzed by using the SEM-PLS approach. It is found that audit committee diligence in audit and decision-making areas significantly increases the audit committee activity. Moreover, audit committee activity and responsibility in internal audit, regulatory compliance, and risk management significantly influence the audit committee’s effectiveness.

Article Details

Author Biography

Amelia Setiawan, Universitas Katolik Parahyangan

Accounting Department, Faculty of Economy

How to Cite
Sudjono, A. C., & Setiawan, A. (2024). Audit Committee’s Roles & Effectiveness: Evidence from Indonesia. SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS, 8(2), 183–208. https://doi.org/10.29259/sijdeb.v8i2.183-208