KUALITAS AUDIT DAN MYOPIC BEHAVIOUR

Abstract

This study aims to empirically examine the role of auditor quality (industrialspecialization) in limiting myopic management practices in Indonesia. This study uses asample of 165 firms with 660 observations during 2004 to 2007 and using the pooleddata. This study focuses myopic behavior by using the pattern as a motivationincreasing income managers to manipulate earnings. By using independent sample t-test, this study suggests that abnormal operation cash flow (CFO) and abnormalproduction costs that companies audited by industry specialist auditors is lower thanthe companies audited by non-industry specialist auditors, being abnormaldiscretionary expenses auditor client higher than the industry specialists abnormaldiscretionary expenses, non-specialist auditors clients industry.

Keywords : myopic behaviour, audit quality, cash flow operation, abnormalproduction cost, abnormal discretionary expenses.