Abstract
Earning Management practices caused a lot of money scandals toward big companies, like enron scandals. To overcome those impact, stakeholder parties asked monitoring focus on management and operational company activities. Audit committee played important role in the monitoring company process. Audit committee had to make sure that company activity and management business on the right track. So that, earning management practices could be minimized and investor obtained reliable information about the company.
The purpose of this study was to examine whether Audit Committee Size, Meeting Frequence, Audit Committee Independence and Audit Committee Financial Expertise influenced earning management practices. Earning management was proxied by discretionary accruals. This research used manufactures company annual report as population. Using a purposive sampling method, 143 companies data were selected as samples. Three years companies annual report, during 2011 to 2013 are used as secondary data. The data was analyzed by
multiple regression. The results indicated that 125 data, about 87,4% companies sample proper based on Bapepam rules. Those data were free from outliers and met the classic assumption criteria. Other result showed that Audit committee size, Meeting Frequence and Financial Expertise did not have any influence toward earning management. While, Audit Committee Independence had influence.
Keywords : audit committee, corporate governance, earnings management