Proportion of Independent Board of Commissioners, Effectiveness of Audit Committee, Quality of Internal and External Auditors on Earnings Management (Empirical Study on State-Owned Enterprises Registered in Indonesia Stock Exchange 2016-2019)

ABSTRACT : This study aims to examine the effect of the proportion of independent commissioners, theeffectiveness of the audit committee, the quality of internal and external auditors on earnings management. Thepopulation of this research is State-Owned Enterpriseslisted on the IDX for the period 2016-2019. The sampleobtained was 13 companies using the purposive sampling method. The analysis technique used is MultipleLinear Regression. Results show that the independent variables in this study simultaneously had a negativeeffect on earnings management. The proportion of independent commissioners and the quality of externalauditors partially have a negative effect on earnings management. The effectiveness of the audit committee, thecompetence, and objectivity of the internal auditors do not have a significant effect on earnings management.Independent parties can carry out more optimal supervision, so it is suggested that the company can consider theappropriate composition of the seats on the independent board of commissioners and external auditors who cancarry out their duties independently.

Keywords: Independent Commissioner, Audit Committee, Internal Auditor, External Auditor, EarningsManagement.