P I C E E B A, 1ST PICEEBA 2018

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GOING CONCERN and THE ROLE OF AUDIT COMMITTEE AND INDEPENDENT COMMISSIONERS
Charoline Cheisviyanny, Sany Dwita, Herlina Helmy

Last modified: 2018-06-28

Abstract


This research aims to analyze the role of audit committee (AC) and independent commissioners (ICs) in relation to going concern problems in public companies. Based on the Indonesian GCG rules, one of their duties is to maintain company’s long term going concern, but many previous studies found that the existences of AC and ICs did not affect the performance of their companies. This research analyzed four companies with going concern opinion, two of them are given by external auditors (Berlian and SLJ) and the rest are companies which should be given going concern opinion based on Z score (Panasia and Bentoel). The role of AC members and ICs was measured based on their proficiencies which was analyzed from their educational background, experience, and independency. This research was conducted in the beginning of 2016. Data was collected from annual reports (2012-2014), commissioner reports, websites, and social media. After doing the analysis, we concluded that the role of AC and ICs has not yet been optimal as required by the rules. It suggested for further research to do depth interview with related parties and to explore other companies.

 


Keywords


audit committee, independent commissioners, educational background, experience, independency