PENGARUH KUALITAS AUDIT, INDEPENDENSI AUDITOR,UKURAN PERUSAHAAN DAN PROFITABILITASTERHADAP MANAJEMEN LABA

Abstract

This research is meant to examine out the influence of audit quality (KI), auditors independency (IA), firm size
(SIZE), and profitability (PROFIT) to the earnings management (EM). Audit quality is proxy by the length of
the correlation between the client and the auditor (audit tenure). Firm size is proxy by return on asset (ROA).
Earnings management is proxy by the magnitude of discretionary accrual which has been done by using
modified jones model. The sample is all retail trade companies which are listed in Indonesia Stock Exchange
(IDX) in 2012-2015 periods. The sample collection technique has been done by using purposive sampling, so
that the samples are 10 companies with the amount of observation 40 firm years. The analysis method has been
carried out by using multiple linear regressions analysis with the instrument application is SPSS 20th version.
The result of the research shows that audit quality and auditor independency give negative influence to the
earnings management mean while firm size and profitability does not give any influence to the earnings
management.
Keywords: Audit quality, auditor independency, firm size, profitability, earnings management.