The Effect of the Proportion of Independent Board, Audit Committee and Audit Quality on Earnings Management (Empirical Study on Manufacturing Companies Listed on the Stock Exchange Indonesia Period 2012 - 2014)

This research aimed to analyze the effects of the proportion of independent board, audit committee and audit quality on earnings management. Quality audits in this research is proxied in firm size, auditor independence and auditor industry specialization. The population used in this research were manufacturing companies listed on The Indonesia Stock Exchange during 2012 - 2014. The sampling technique used in this research was purposive sampling method and obtained 198 samples of data for 66 companies. This research uses secondary data from the annual financial statements obtained from the Indonesia Stock Exchange during 2012 - 2014. To test the hypoteses in this research used multiple linear regression. The results of this research showed that auditor independence has negatively influence to earnings management. The higher independence of auditors who audited the company, the lower earnings management that may be carried out by management. The research also found evidence that the proportion of independent board, audit committee, firm size and auditor industry specialization had not significant effect to earnings management. Keywords: Independent board, audit committee, audit quality, earnings management