The role of the audit committee in accounting and finance expertise on earnings quality

This study aims at examining the effect of audit committee with accounting and finance expertise on earnings quality manufacturing companies in Indonesia. The measurement uses absolute value discretionary accrual. three measurements accruals, Jones model (Jones, 1991), modified (Dechow, Sloan, & Sweeney, 1995), Kasznik models (Kasznik, 1999). Further, current refers to Badolato, Donelson, Ege (2014) identify expertise. data were collected from Indonesia Stock Exchange (IDX) between 2015 2017 331 observations. results showed that committees’ characteristics both have a negative Thus, members reduced level accruals. result is consistent using Therefore, positive improving firms’ earnings. Our robust different methods accrual measurement. may be very helpful for those committees seeking improve their composition way working. In other words, findings this are potentially relevant policy-makers