PENGARUH MOTIVASI MANAJEMEN DAN KOMPETENSI INTERNAL AUDITOR TERHADAP PRAKTIK PENGELOLAAN LABA
STUDI PADA BUMN DI INDONESIA
Keywords:Management Motivation, Internal Auditor Competence, Profit Management Practice.
The quality of unfinished financial reporting is still prevalent in Indonesia,
both in the public and private sectors. In the public sector, the quality of financial
statements is getting worse (Anwar, 2011). The indication of more and more local
government financial statements that get a fair opinion with the exception and
unnatural. Poor financial statements also occur in higher education institutions
(Febri, 2011). In the State-Owned Enterprises (SOEs) there are problems in terms
of performance and financial statements (Achsanul, 2015). State-owned
companies are suspected of making reports as if the earnings received were
greater than actual earnings (Hasan, 2013). In the private sector, there are 154
companies with problematic financial report cards (Yunus, 2011).
One of the causes of the low quality of financial reporting is the existence
of accounting engineering, one of which is the management of earnings. Earnings
management is an active manipulation of earnings for a set target by
management, analyst estimates, or numbers consistent with smoother, more
sustainable flow (Mulford and Comiskey (2002: 2)
This study aims to determine the effect of management motivation and
internal auditor's competence on earnings management practices. An analysis
was conducted on 59 data of SOE companies in Indonesia selected by using
simple random sampling method. Using the structural equation modeling partial
least square (SEM-PLS) method, the results of this study show that: 1).
management motivation has an effect on earnings management practice. 2). The
internal competence of auditors has no effect on earnings management practices.
Keywords : Management Motivation, Internal Auditor Competence, Profit