The issue of earnings management has become a concern, especially in respect to corporate governance as an internal and external monitoring mechanism to ensure the financial reporting quality. Indonesia companies have high earnings management and have new regulation on audit committee characteristic especially, audit committee tenure and audit committee duality.The objective of the study has been to examine the relationship between the audit committee tenure and audit committee duality role and earnings management and moderating effect of external audit quality between relationship duality and tenure audit committee and earnings management based on the agency theory. The relationship between the audit committee tenure and audit committee duality role and earnings management and the moderating effect of external audit quality on the between relationship duality and tenureaudit committee and earnings quality of is examined. Data from 216 non-financial firms listed in Indonesia Stock Exchange for the years 2013 to 2016 is used. Real earnings management models were used to measure earnings management. Significant association was found between audit committee tenure and earnings management. In addition, significant the moderating effect of external audit quality relationship between audit committee duality and earnings management. However, no significant relationship was found between audit committee duality and earnings management. The appropriateness of policy audit committee tenure may be considered by policy makers.
Key words: audit committee characteristics, earnings management.
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