Internal Auditor and Organization Culture on Quality of Financial Reporting of Pharmaceutical Companies

Ewing Yuvisa Ibrani, Yulita Setiawanta, Faisal Faisal, Yenny Dwi Handayani

Abstract


Abstract—This study aims to analyze the influence of internal auditors and organizational culture on financial reporting of pharmaceutical companies in Indonesia. The researcher classifies internal auditors in two categories, namely the relationship of internal auditors with external auditors and internal auditors with company financial information. The unit of analysis used is. Using an analysis unit of  60 respondents who are heads of internal audit, internal audit staff, head of finance, financial managers and internal audit supervisors, financial staff in pharmaceutical companies in Indonesia that are listed in IDX in 2017, evidence is obtained that the relationship between internal auditors and external auditors is significantly influential towards financial reporting quality. Likewise, the internal auditor's relationship with the company's financial information and Organizational Culture both significantly supports financial reporting quality.

Keywords—internal auditor, organization culture, quality of financial reporting, pharmaceutical companies, Indonesia


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