Journals Information
Universal Journal of Accounting and Finance Vol. 10(1), pp. 72 - 81
DOI: 10.13189/ujaf.2022.100108
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IFRS Convergence and Disclosure Quality: The Role of Audit Quality Moderation (Study on Multinational Companies in Indonesia)
Fatmasari Sukesti 1,*, Abdul Kharis Almasyhari 1, Nurul Nazlia Jamil 2, Ainulashikin Marzuki 2
1 Department of Accounting, Faculty of Economics, Universitas Muhammadiyah Semarang, Indonesia
2 Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Malaysia
ABSTRACT
IFRS convergence was initiated through the agreement of the G20 leadership meeting in Washington at 2008. The meeting agreed to use IFRS as an international accounting standard. Adopting IFRS as a single global accounting standard can make Indonesian companies ready and able to transact across countries, or mergers and acquisitions. IFRS supports the readiness of industry in Indonesia to be competitive at the global level. Financial statements based on IFRS produce information more relevant, accurate and more comparable. IFRS can produce valid information on company assets, liabilities, equity, income and expenses. Management will have a high level of accountability to run the company. This study examined the role of audit quality as moderating variable in the relationship between the IFRS convergence and disclosure quality, and studies on multinational companies listed the Indonesian Stock Exchange 2012-2018 period. The research used 63 multinational companies and it tested using the SPSS 25 statistical test tool. The research has proven the effect of IFRS convergence on disclosure quality, and the role of audit quality in strengthening the relationship between the two variables. IFRS convergence applied requires the role of external audit to provide assurance or assurance that the financial statements presented have complied with the standards for preparing financial statements and are fairly presented without material errors.
KEYWORDS
IFRS Convergence, Disclosure Quality, Audit Quality
Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Fatmasari Sukesti , Abdul Kharis Almasyhari , Nurul Nazlia Jamil , Ainulashikin Marzuki , "IFRS Convergence and Disclosure Quality: The Role of Audit Quality Moderation (Study on Multinational Companies in Indonesia)," Universal Journal of Accounting and Finance, Vol. 10, No. 1, pp. 72 - 81, 2022. DOI: 10.13189/ujaf.2022.100108.
(b). APA Format:
Fatmasari Sukesti , Abdul Kharis Almasyhari , Nurul Nazlia Jamil , Ainulashikin Marzuki (2022). IFRS Convergence and Disclosure Quality: The Role of Audit Quality Moderation (Study on Multinational Companies in Indonesia). Universal Journal of Accounting and Finance, 10(1), 72 - 81. DOI: 10.13189/ujaf.2022.100108.