• Alfita Rakhmayani Universitas Diponegoro
  • Faisal Faisal Program Magister Akuntansi, Fakultas Ekonomika dan Bisnis, Universitas Diponegoro


Internal control system is a key aspect in providing the completeness and reliable information. The adequately of internal control system disclosure may help stakeholders in assessing the quality of corporate’s internal control system and also can reduce asymmetric information. This study examines the effect of audit committee characteristics on internal control disclosure. The sample consists of 100 public companies with the largest market capitalization in 2016. The statistical regression analysis was performed to test the hypotheses. The results show that number of audit committee meetings has a positive effect on the internal control disclosure. However, this study failed to provide evidence that number and education background of audit committee contribute in enhancing the extent of internal control disclosure. This finding suggests that audit committee play a role in reducing asymmetric information through the broader internal control disclosure.


Agyei-Mensah, B. K. (2016). Internal control information disclosure and corporate governance: Evidence from an emerging market. Corporate Governance: The international journal of business in society, Vol. 16 No. 1, pp. 79-95.

Ahmad, R. A. R., Abdullah, N., Jamel, N. E. S. M., & Omar, N. (2015). Board characteristics and risk management and internal control disclosure level: Evidence from malaysia. Procedia Economics and Finance, Vol. 31, pp. 601-610.

Chalmers, K., Hay, D., & Khlif, H. (2018). Internal control in accounting research: A review. Journal of Accounting Literature. 42(June), pp. 80-103

Chang, Y. T., Chen, H., Cheng, R. K., & Chi, W. (2019). The impact of internal audit attributes on the effectiveness of internal control over operations and compliance. Journal of Contemporary Accounting & Economics, Vol. 15 No. 1, pp. 1-19.

Chen, Y., Knechel, W. R., Marisetty, V. B., Truong, C., & Veeraraghavan, M. (2017). Board independence and internal control weakness: Evidence from sox 404 disclosures. AUDITING: A Journal of Practice & Theory, Vol. 36 No. 2, pp. 45-62.

Coso. (2013). Internal control – integrated framework (2013 framework).

Ege, M. S. (2015). Does internal audit function quality deter management misconduct?. The Accounting Review, Vol. 90 No. 2, pp. 495-527.

Hoitash, U., Hoitash, R., & Bedard, J.C. (2009). Corporate governance and internal control over financial reporting: A comparison of regulatory regimes. The Accounting Review, Vol. 84 No. 3, pp. 839-867.

Ismail, M. D., & Ardiyanto, M.D. (2017). Pengaruh mekanisme corporate governance terhadap pengungkapan informasi pengendalian internal. Diponegoro Journal of Accounting, Vol. 6 No. 3, pp. 1-13.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm : Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, Vol. 3, pp. 305-360.

Khlif, H., & Samaha, K. (2016). Audit committee activity and internal control quality in egypt. Managerial Auditing Journal. Vol. 31 No. 3, pp. 269-289.

Krishnan, J. (2005). Audit committee quality and internal control: An empirical analysis. The Accounting Review, Vol. 80 No. 2, pp. 649-675.

Leng, J., & Ding, Y. (2011). Internal control disclosure and corporate governance: Empirical research from chinese listed companies. Technology and Investment, Vol. 02 No. 04, pp. 286-294.

Li, J., Mangena, M., & Pike, R. (2012). The effect of audit committee characteristics on intellectual capital disclosure. The British Accounting Review, Vol. 44 No. 2, pp. 98-110.

Li, W. X., Chen, C. C. S., & French, J. (2012). The relationship between liquidity, corporate governance and firm valuation: Evidence from russia. Emerging Markets Review, Vol. 13 No. 4, pp. 465-477.

Lu, Y., & Cao, Y. (2018). The individual characteristics of board members and internal control weakness: Evidence from china. Pacific-Basin Finance Journal, Vol. 51, pp. 75-94.

Madi, H. K., Ishak, Z., & Manaf, N. A. A. (2014). The impact of audit committee characteristics on corporate voluntary disclosure. Procedia - Social and Behavioral Sciences, Vol. 164 No. August, pp. 486-492.

Mangena, M., & Pike, R. (2005). The effect of audit committee shareholding, financial expertise and size on interim financial disclosures. Accounting and Business Research, Vol. 35 No. 4, pp. 327-349.

Marsha, F., & Ghozali, I. (2017). Pengaruh ukuran komite audit, audit eksternal, jumlah rapat komite audit, jumlah rapat dewan komisaris dan kepemilikan institusional terhadap manajemen laba (studi empiris perusahaan manufaktur yang terdaftar di bei tahun 2012-2014). Diponegoro Journal of Accounting, Vol. 6 No. 2, pp. 91-102.

Mukhlasin, M., & Anissa, N. (2018). Internal control disclosure, ethics disclosure and earnings management as signal to detect fraudulent financial reporting. International Journal of Management, Accounting and Economics. Vol. 5 No. 6, pp. 448-460.

Muthmainnah, N., & Wardhani, R. (2013). Analisis dampak kualitas komite audit terhadap kualitas laporan keuangan perusahaan dengan kualitas audit sebagai variabel moderasi. Jurnal Akuntansi dan Keuangan Indonesia, Vol. 10 No. 2, pp. 147-170.

Zhang, Y., Zhou, J., & Zhou, N. (2007). Audit committee quality, auditor independence, and internal control weaknesses. Journal of Accounting and Public Policy, Vol. 26 No. 3, pp. 300-327.

Abstract viewed = 77 times
PDF (Bahasa Indonesia) downloaded = 146 times