Factors affecting the integrity of financial statements

Financial statements can be a powerful way to disseminate information about company’s finances or operations. Alchian’s (1950) evolutionary theory of economic change posits that market forces will naturally regulate businesses. This compiles and analyzes the empirical evidence empirically explore, from an Indonesian perspective, how corporate governance, internal audit quality, external pressures interact affect integrity financial statements. Quantitative methods were used for this investigation. comes secondary source. The researchers here systematic sampling strategy called purposive sampling. study data 96 samples collected over course three years. In study, employed panel analysis technique with help EViews software. Corporate governance is examined through lenses institutional ownership, managerial committees, proportion independent commissioners. statement was found significantly affected by commissioners but not committees. consistency unaffected either quality any pressures. Managers are careful artificially inflate company profits in order keep investors happy, as they own disproportionately large share stock. means stability improves ownership grows