MEDIATING KEY AUDIT METTERS ON THE RELATIONSHIP, AUDIT QUALITY, AND EARNINGS MANAGEMENT

Abstract

This study examines the mediating effect of key audit metters on the relationship between audit quality and earnings management. The research was conducted at consumer goods companies listed on the Indonesia Stock Exchange in 2022. The sample of this study was 85 company data selected through sample criteria. The data analysis technique used in this research is multiple regression analysis. The results of this study indicate that audit quality has a significant effect on key audit matters (KAMs), key audit matters (KAMs) have a significant effect on earnings management, audit quality has a significant effect on earnings management. Key audit matters (KAMs) are able to mediate the effect of audit quality on earnings management. The results of this study provide information that high audit quality and key audit matters (KAMs) conditions can be predicted to reduce earnings management, so that this can provide benefits for the management of manufacturing companies in the consumption sector in managing the risk of earnings management carried out by the company.