Authors : Wahyuni Anggarwati; Taufik Akbar

Volume/Issue : Volume 10 - 2025, Issue 8 - August

Google Scholar : https://tinyurl.com/d4ywrh8b

Scribd : https://tinyurl.com/4v7s3ua6

DOI : https://doi.org/10.38124/ijisrt/25aug1439

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Note : Google Scholar may take 30 to 40 days to display the article.

Abstract : This research examines how Good Corporate Governance (GCG) and Key Audit Matters (KAM) influence financial reporting quality, with firm size considered as a moderating factor. The study is conducted on manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2020–2023. GCG is assessed through two proxies: the proportion of independent commissioners and the size of the audit committee. A quantitative approach is applied, relying on secondary data obtained from annual reports and audited financial statements. Data analysis employs multiple linear regression and Moderated Regression Analysis (MRA) using EViews 12. Unlike prior studies that typically address GCG and KAM in isolation, this work combines the two to build an integrated empirical model. The findings indicate that both independent commissioners and audit committee size do not significantly affect financial reporting quality. In contrast, KAM disclosures exert a positive and significant impact. Moreover, firm size does not moderate the relationship between GCG, KAM, and reporting quality. These results highlight that auditor transparency—captured through KAM disclosures—has greater influence on the credibility of financial statements compared to board-level governance mechanisms. The study enriches the literature by presenting the joint effect of governance and audit disclosures, while offering practical implications for regulators, policymakers, and practitioners to reinforce governance standards, enhance audit transparency, and reduce risks of financial misstatement in Indonesia.

Keywords : Good Corporate Governance, Key Audit Matters, Firm Size, Financial Reporting Quality, Corporate Governance.

References :

1. Akbar, T., Retnowati, W., Pernamasari, R., Utami, W., Hidayah, N., Iskandar, D., & Oktris, L. (2025). Tata Kelola Perusahaan: Teori dan Kasus (1st ed.). Salemba Empat.
2. Al-Slehat, Z. A. F. (2020). Impact of Financial Leverage, Size and Assets Structure on Firm Value: Evidence from Industrial Sector, Jordan. International Business Research, 13(1), 109. https://doi.org/10.5539/ibr.v13n1p109
3. Alaali, N., Al Marzouqi, A., Albaqaeen, A., Dahabreh, F., Alshurideh, M., Mouzaek, E., Alrwashdh, S., Iyadeh, I., Salloum, S., & Aburayya, A. (2021). The impact of adopting corporate governance strategic performance in the tourism sector: A case study in the Kingdom of Bahrain. Journal of Legal, Ethical and Regulatory Issues, 24(Special Issue 1), 1–18.
4. Alawaqleh, Q. A., & Almasri, N. (2021). The Impact of Audit Committee Performance and Composition on Financial Reporting Quality in Jordan. International Journal of Financial Research, 12(3), 55. https://doi.org/10.5430/ijfr.v12n3p55
5. Alijoyo, A. (2022). Komisaris Independen : Penggerak Governansi Korporat. Gramedia Widiasarana Indonesia.
6. Alzeban, A. (2020). The impact of audit committee, CEO, and external auditor quality on the quality of financial reporting. Corporate Governance, 20(2), 263–279. https://doi.org/10.1108/CG-07-2019-0204
7. Anggita, M., & Pohan, H. T. (2022). Pengaruh Good Corporate Governance, Financial DistressDan Ukuran Perusahaan Terhadap Integritas LaporanKeuangan. Jurnal Ekonomi Trisakti, 2(2), 541–554. https://e-journal.trisakti.ac.id/index.php/jet/article/view/14517/8492
8. Anik, S., Chariri, A., & Isgiyarta, J. (2021). The Effect of Intellectual Capital and Good Corporate Governance on Financial Performance and Corporate Value: A Case Study in Indonesia. Journal of Asian Finance, Economics and Business, 8(4), 391–402. https://doi.org/10.13106/jafeb.2021.vol8.no4.0391
9. Baridwan, Z. (2021). Intermediate Accounting (9th ed.). UPP STIM YKPN.
10. Basuki, A. T., & Prawoto, N. (2017). Analisis regresi dalam penelitian ekonomi & bisnis: Dilengkapi aplikasi SPSS & EViews. Depok: Raja Grafindo Persada.
11. Binekasri, R. (2024). Kimia Farma (KAEF) Akui Ada Pelanggaran Laporan Keuangan Anak Usaha. CNBC Indonesia. https://www.cnbcindonesia.com/market/20240619110542-17-547404/kimia-farma--kaef--akui-ada-pelanggaran-laporan-keuangan-anak-usaha
12. Candra, R., Juliani, M., & Handayani, W. (2024). Tata Kelola Perusahaan Dan Kecurangan Pelaporan Keuangan: Studi Kasus Industri Barang Konsumen Di Bei. Jurnal Keuangan Dan Bisnis, 22(1), 85–102. https://doi.org/10.32524/jkb.v22i1.1136
13. Castillo-Merino, D., Garcia-Blandon, J., & Martinez-Blasco, M. (2019). Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right? European Accounting Review, 29(2), 233–262. https://doi.org/10.1080/09638180.2019.1577151
14. Choiriah, S., Tarmidi, D., & Ahmad, Z. (2024). ESG Disclosure, Financial Reporting Quality and Investment Efficiency. International Journal of Social Science and Business, 8(3), 455–465. https://dx.doi.org/10.23887/ijssb.v8i3.78318
15. CNBC Indonesia. (2025). Hasil Audit Keluar, Ini 4 Data Palsu Karangan Gibran Cs di eFishery. CNBC Indonesia. https://www.cnbcindonesia.com/news/20250208081429-4-609047/hasil-audit-keluar-ini-4-data-palsu-karangan-gibran-cs-di-efishery
16. CNN. (2024). Kimia Farma Temukan Dugaan Masalah di Laporan Keuangan Anak Usaha. CNN Indonesia. https://www.cnnindonesia.com/ekonomi/20240603094601-92-1105015/kimia-farma-temukan-dugaan-masalah-di-laporan-keuangan-anak-usaha
17. Dirman, A. (2020). Financial distress: The impacts of profitability, liquidity, leverage, firm size, and free cash flow. International Journal of Business, Economics and Law, 22(1), 1.
18. Ejazi, S. H., Ezadi, H., & Sajadi, H. (2022). Comparability of accounting , quality of financial reporting and pricing of accruals. 6(1), 115–130.
19. Espahbodi, R., Lin, J., Liu, N., Mock, T. J., & Song, M. (2023). The Effect of Reporting Key Audit Matters on Audit Fees and Financial Reporting Quality: Evidence from Hong Kong. Journal of International Accounting Research, 22(2), 1–20. https://doi.org/10.2308/JIAR-2021-045
20. Fatimah, S., Putu Agustinawati, N., & Petro, S. (2020). Pengaruh Mekanisme Corporate Governance, Audit Tenure,Ukuran Perusahaan Dan Leverage Terhadap Integritas Laporan Keuangan (Studi Empiris Pada Perusahaan BUMN Yang Terdaftar Di Bursa Efek Indonesia). Neraca: Jurnal Pendidikan Ekonomi, 5(2), 1–13. https://doi.org/10.33084/neraca.v5i2.1418
21. Firdausi, W., & Fitria, G. N. (2024). The Influence of Capital Structure, Profitability, and Company Size on Company Value (Empirical Study on Sector Manufacturing Companies Automotive Industry Listed on BEI 2018-2022). Kurs Jurnal Akuntansi Kewirausahaan Dan Bisnis, 9(1), 97–107.
22. Ghozali, I. (2017). Analisis Multivariat Dan Ekonometrika : Teori, Konsep, Dan Aplikasi Dengan Eview 10. Universitas Diponogoro.
23. Gold, A., & Heilmann, M. (2019). The consequences of disclosing key audit matters (KAMs): A review of the academic literature. Maandblad Voor Accountancy En Bedrijfseconomie, 93(1/2), 5–14. https://doi.org/10.5117/mab.93.29496
24. Golmohammadi Shuraki, M., Pourheidari, O., & Azizkhani, M. (2021). Accounting comparability, financial reporting quality and audit opinions: evidence from Iran. Asian Review of Accounting, 29(1), 42–60. https://doi.org/10.1108/ARA-06-2020-0087
25. Halimah, N., Yuni, S., & Kubertein, A. (2024). Analisis Pengaruh Good Corporate Governance (GCG) Terhadap Integritas Laporan Keuangan Dengan Kualitas Audit Sebagai Pemoderasi (Studi Pada Perusahaan Manufaktur Sub Sektor Industri Dasar dan Kimia Yang Terdaftar di BEI Periode 2019-2022). JRIME : Jurnal Riset Manajemen Dan Ekonomi, 2(1), 147–165. https://doi.org/10.54066/jrime-itb.v2i1.1127
26. Hasan, S., Kassim, A. A. M., & Hamid, M. A. A. (2020). the Impact of Audit Quality, Audit Committee and Financial Reporting Quality: Evidence From Malaysia. International Journal of Economics and Financial Issues, 10(5), 272–281. https://doi.org/10.32479/ijefi.10136
27. Hasna, D. A., & Novianti, N. (2024). The Effect of Hexagon Fraud Theory on Financial Statement Fraud with Audit Committee As a Moderating Variable. Asia Pacific Fraud Journal, 9(2), 295–307. https://doi.org/10.21532/apfjournal.v9i2.350
28. Herliansyah, Y., Tarmidi, D., & Fauzi, M. (2023). Profitabilitas, Sales Growth, Leverage, Ukuran Perusahaan Dan Penghindaran Pajak: Bukti Dari Perusahaan Sektor Industri Barang Konsumsi. Jurnal Akuntansi Dan Bisnis Krisnadwipayana, 10(2), 1261. https://doi.org/10.35137/jabk.v10i2.929
29. Hia, H., & Kusumawardhani, I. (2023). Determinants of Financial Statement Integrity. Journal of International Conference Proceedings, 6(6), 87–98. https://doi.org/10.32535/jicp.v6i6.2677
30. Hosseinniakani, M., Overland, C., & Samani, N. (2024). Do key audit matters matter? Correspondence between auditor and management disclosures and the role of audit committees. Journal of International Accounting, Auditing and Taxation, 55(1), 1–69. https://doi.org/10.1016/j.intaccaudtax.2024.100617
31. Indah, S., Sulistiyowati, Y., Mukoffi, A., & Himawan W, S. (2023). The influence of independence, corporate governance, and audit quality on the integrity of financial statements. Priviet Social Sciences Journal, 3(11), 10–16. https://doi.org/10.55942/pssj.v3i11.253
32. Indriawati, T. (2025). eFishery Terlibat Skandal Keuangan Rp 9,74 Triliun: Apa yang Terjadi? Kompas.Com. https://www.kompas.com/jawa-barat/read/2025/01/26/060000588/efishery-terlibat-skandal-keuangan-rp-9-74-triliun--apa-yang-terjadi-?page=all
33. Institut Akuntan Publik Indonesia (IAPI). (2021). Standar Audit 701 (2021) Pengomunikasian Hal Audit Utama dalam Laporan Auditor Independen. In Standar Profesional Akuntan Publik (Vol. 701, Issue Revisi).
34. Institut Akuntan Publik Indonesia (IAPI). (2023). Penerapan Tahun Pertama SA 701 Tentang Pengomunikasian Hal Audit Utama (HAU) di Indonesia. https://iapi.or.id
35. International Auditing and Assurance Standards Board (IAASB). (2015). International Standard on Auditing (ISA) 701 (New):Communicating Key Audit Matters in the Independent Auditor’S Report. In International Auditing Standards (ISA) 701. https://www.ifac.org/_flysystem/azure-private/publications/files/ISA-701_2.pdf
36. Islam, M., Slof, J., & Albitar, K. (2023). The mediation effect of audit committee quality and internal audit function quality on the firm size–financial reporting quality nexus. Journal of Applied Accounting Research, 24(5), 839–858. https://doi.org/10.1108/JAAR-06-2022-0153
37. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/https://doi.org/10.1016/0304-405X(76)90026-X
38. Jihadi, M., Vilantika, E., Hashemi, S. M., Arifin, Z., Bachtiar, Y., & Sholichah, F. (2021). The Effect of Liquidity, Leverage, and Profitability on Firm Value: Empirical Evidence from Indonesia. Journal of Asian Finance, Economics and Business, 8(3), 423–431. https://doi.org/10.13106/jafeb.2021.vol8.no3.0423
39. Kezia Julia Putri. (2023). Implications of Good Corporate Governance (GCG) on Financial Statement Integrity. International Journal of Asian Business and Management, 2(3), 179–192. https://doi.org/10.55927/ijabm.v2i3.4309
40. Kitiwong, W., & Sarapaivanich, N. (2020). Consequences of the implementation of expanded audit reports with key audit matters (KAMs) on audit quality. Managerial Auditing Journal, 35(8), 1095–1119. https://doi.org/10.1108/MAJ-09-2019-2410
41. Kohler, A., Ratzinger-Sakel, N., & Theis, J. (2020). The Effects of Key Audit Matters on the Auditor’s Report’s Communicative Value: Experimental Evidence from Investment Professionals and Non-professional Investors. Accounting in Europe, 17(2), 105–128. https://doi.org/10.1080/17449480.2020.1726420
42. Komite Nasional Kebijakan Governansi. (2021). Pedoman Umum Governansi Korporat Indonesia (PUGKI) 2021. Komite Nasional Kebijakan Governansi, 37. https://knkg.or.id
43. Kyere, M., & Ausloos, M. (2021). Corporate governance and firms financial performance in the United Kingdom. International Journal of Finance and Economics, 26(2), 1871–1885. https://doi.org/10.1002/ijfe.1883
44. Lau, C. K. (2021). Measurement uncertainty and management bias in accounting estimates: the perspective of key audit matters reported by Chinese firms’ auditors. Asian Review of Accounting, 29(1), 79–95. https://doi.org/10.1108/ARA-07-2020-0109
45. Le, T., & Lobo, G. J. (2022). Audit Quality Inputs and Financial Statement Conformity to Benford’s Law. Journal of Accounting, Auditing and Finance, 37(3), 586–602. https://doi.org/10.1177/0148558X20930467
46. Li, H. (2020). A Study of Key Audit Matters Disclosure. Modern Economy, 11(02), 399–406. https://doi.org/10.4236/me.2020.112030
47. Mappanyukki, R., Sumito, N., & Setiyawati, H. (2021). Influence of Internal Audit and Internal Control System on Quality of the Financial Statement. Atlantis Press, 161, 26–31.
48. Mardessi, S. (2022). Audit committee and financial reporting quality: the moderating effect of audit quality. Journal of Financial Crime, 29(1), 368–388. https://doi.org/https://doi.org/10.1108/JFC-01-2021-0010
49. Meiryani, Fahlevi, M., Robbani, A. I., Winoto, A., Salim, G., Purnomo, A., & Lusianah. (2023). Factors Affecting the Integrity of Financial Statements. Corporate Governance and Organizational Behavior Review, 7(3), 211–227. https://doi.org/10.22495/cgobrv7i3p17
50. Muraina, S. A., & Dandago, K. I. (2020). Effects of implementation of International Public Sector Accounting Standards on Nigeria’s financial reporting quality. International Journal of Public Sector Management, 33, 323–338. https://doi.org/DOI10.1108/IJPSM-12-2018-0277
51. OJK. (2014). Peraturaan Otoritas Jasa Keuangan Nomor 33/POJK.04/2014 Tentang Direksi dan Dewan Komisaris Emiten Atau Perusahaan Publik. Otoritas Jasa Keuangan Republik Indonesia. https://www.ojk.go.id/id/regulasi/Documents/Pages/POJK-tentang-Direksi-dan-Dewan--Komisaris-Emiten-atau-Perusahaan-Publik/POJK 33. Direksi dan Dewan Komisaris Emiten Atau Perusahaan Publik.pdf
52. Otoritas Jasa Keuangan. (2015). POJK No 55 /POJK.04/2015 Tentang Pembentukan Dan Pedoman Pelaksanaan Kerja Komite Audit. Ojk.Go.Id, 1–29. http://www.ojk.go.id/id/kanal/iknb/regulasi/lembaga-keuangan-mikro/peraturan-ojk/Documents/SAL-POJK PERIZINAN FINAL F.pdf
53. Pasc, L. V., & Hategan, C. D. (2023). Disclosure of Key Audit Matters: European Listed Companies’ Evidence on Related Parties Transactions. International Journal of Financial Studies, 11(3). https://doi.org/10.3390/ijfs11030082
54. Permatalia, R., & Haryono, S. (2020). Pengaruh Kualitas Komite Audit dan Kualitas Audit Terhadap Kualitas Pelaporan Keuangan Perusahaan. Al-Intaj Jurnal Ekonomi Dan Perbankan Syariah, 1(1).
55. Phan, T. T. H., Lai, L. A., Le, T. T., Tran, D. M., & Tran, D. T. (2020). The impact of audit quality on performance of enterprises listed on Hanoi Stock Exchange. Management Science Letters, 10(1), 217–224. https://doi.org/10.5267/j.msl.2019.8.001
56. Phornlaphatrachakorn, K., & Kalasindhu, K. N. (2021). Digital Accounting, Financial Reporting Quality and Digital Transformation: Evidence from Thai Listed Firms. Journal of Asian Finance, 8(8), 409–0419. https://doi.org/10.13106/jafeb.2021.vol8.no8.0409
57. POJK. (2023). Peraturan Otoritas Jasa Keuangan Nomor 30 Tahun 2023 tentang Pengomunikasian Hal Audit Utama dalam Laporan Akuntan Publik atas Laporan Keuangan yang Diaudit di Pasar Modal. In Otoritas Jasa Keuangan. https://ojk.go.id/id/regulasi/Pages/Pengomunikasian-Hal-Audit-Utama-Dalam-Laporan-Akuntan-Publik-Atas-Laporan-Keuangan-Yang-Diaudit-di-Pasar-Modal.aspx
58. Pratama, A. (2021). Pengantar Pelaporan Korporat Kontemporer (1st ed.). Kencana.
59. Raimo, N., Vitolla, F., Marrone, A., & Rubino, M. (2020). Do audit committee attributes influence integrated reporting quality? An agency theory viewpoint. Business Strategy and the Environment, 30(1), 522–534. https://doi.org/10.1002/bse.2635
60. Rautiainen, A., Saastamoinen, J., & Pajunen, K. (2021). Do key audit matters (KAM) matter? Auditors perceptions of KAM and audit quality in Finland. Managerial Auditing Journal, 36(3), 386–404. https://doi.org/https://doi.org/10.1108/maj-11-2019-2462
61. Ross, Westerfield, Jaffe, & Jordan. (2022). Corporate Finance (13th ed.). McGraw Hill LLC.
62. Safari Gerayli, M., Rezaei Pitenoei, Y., & Abdollahi, A. (2021). Do audit committee characteristics improve financial reporting quality in emerging markets? Evidence from Iran. Asian Review of Accounting, 29(2), 251–267. https://doi.org/10.1108/ARA-10-2020-0155
63. Sandria, F. (2021). Deretan Skandal Lapkeu di Pasar Saham RI, Indofarma-Hanson. CNBC Indonesia. https://www.cnbcindonesia.com/market/20210726191301-17-263827/
64. Saona, P., Muro, L., & Alvarado, M. (2020). How do the ownership structure and board of directors’ features impact earnings management? The Spanish case. Journal of International Financial Management and Accounting, 31(1), 98–133. https://doi.org/10.1111/jifm.12114
65. Sari, E., & Rahayu, S. (2024). Peran Ukuran Perusahaan Sebagai Variabel Moderasi pada Pengaruh Good Corporate Governance dan Corporate Social Responsibility terhadap Nilai Perusahaan. Jurnal Ilmiah Ekonomi, Akuntansi, Dan Pajak (JIEAP), 1(3), 360–377. https://doi.org/https://doi.org/10.61132/jieap.v1i3.465
66. Sari, M. (2021). Pengukuran Kinerja Keuangan Berbasis Good Corporate Governance (Jufrizen (ed.)). UMSU PRESS.
67. Shayesteh, M., Mohammadipour, R., & Kordlouie, H. (2023). The relationship between accounting comparability , financial reporting quality and pricing of accruals. International Journal of Nonlinear Analysis and Applications, 14(December 2021), 313–325.
68. Srikandhi, M. F., & Suryandari, D. (2020). Audit Quality Moderates the Effect of Independent Commissioners, Audit Committee, and Whistleblowing System on the Integrity of Financial Statement. Accounting Analysis Journal, 9(3), 186–192. https://doi.org/10.15294/aaj.v9i3.41625
69. Sugiyono. (2024). Metode Penelitian Kuantitatif,Kualitatif, dan R&D. Alfabeta.
70. Suttipun, M. (2021). Impact of key audit matters (KAMs) reporting on audit quality: evidence from Thailand. Journal of Applied Accounting Research, 22(5), 869–882. https://doi.org/10.1108/JAAR-10-2020-0210
71. Tambunan, S., Siregar, A., Wijaya, M., & Pratama, I. (2022). The Impact of Corporate Governance on the Integrated Reporting Quality of Indonesian Listed Firms: Moderating Role of Csr Disclosure and Corporate Sustainability. International Journal of Economics and Finance Studies, 14(4), 252–274. https://doi.org/10.34109/ijefs.20220113
72. Terzi, S., & Sen, L. K. (2023). Dampak Pelaporan Masalah Audit Utama terhadap Kualitas Audit: Temuan untuk Turki. Journal of Accounting and Auditing Outlook, 68, 59–74. https://doi.org/10.55322/mdbakis.1098821 Doç.
73. Velte, P., & Issa, J. (2019). The impact of key audit matter (KAM) disclosure in audit reports on stakeholders’ reactions: A literature review. Problems and Perspectives in Management, 17(3), 323–341. https://doi.org/10.21511/ppm.17(3).2019.26
74. Vernimmen, P., Quiry, P., Dallocchio, M., Fur, Y. Le, & Salvi, A. (2018). Corporate Finance : Theory and Practice (1st ed.). John Wiley & Sons, Ltd.
75. Yousefi Nejad, M., Sarwar Khan, A., & Othman, J. (2024). A panel data analysis of the effect of audit quality on financial statement fraud. Asian Journal of Accounting Research, 9(4), 422–445. https://doi.org/10.1108/AJAR-04-2023-0112