BOARD FINANCIAL EXPERTISE AND AUDIT QUALITY IN INDONESIA: MODERATING ROLE OF FAMILY BOARD
Arumega Zarefar*(a), Andreas (b), Atika Zarefar (c), Fauzan Dwi Resnanda (d), Nasya Afrina Sari (e)

(a,b,c,)Department of Accounting, Faculty of Economics and Business, Universitas Riau
(d)Student of Master Accounting Program, Faculty of Economics and Business, Universitas Riau
(e)Student of Undergraduate Accounting Program, Faculty of Economics and Business, Universitas Riau

Abstract

Purpose: This research aims to examine the moderating role of the family board on the effect of board financial expertise on audit quality.
Design/methodology/approach: This research uses panel data regression to test the research hypothesis. The sample of this research is non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2010 to 2022 with a total of 1994 observations.
Findings: The research findings disclose the board financial expertise improves audit quality. Whereas family board decreases the positive effect of board financial expertise on audit quality.
Originality/value: For the best author^s knowledge, this research is the first to conduct a comprehensive analysis related to the effect of board financial expertise on audit quality by considering the moderating role of the family board. This research found a family board had a tendency to do things in favour of their family during the Covid 19 crisis, leading to a decrease in audit quality achieved by board financial expertise.

Keywords: board financial expertise, family board, audit quality, Indonesia

Topic: Audit