| The purpose of this research is to analyze the impact of audit committee characteristics (such as audit committee independence, competence, activity, and tenure) and the impact of firm characteristics (such as managerial ownership, leverage, firm size, and growth) against the fraudulent financial reporting probability. Hypothesis testing is carried out by using logistic regression model using fraud data from Bapepam-LK year 2005-2013. The result of this study indicate that the audit committee independence have negatively influenced of the fraudulent financial reporting. Meanwhile, the fraudulent financial reporting likelihood is higher when an audit committee has longer tenure and a firm has higher leverage. Audit committee competence, audit committee activity, managerial ownership, firm size and growth are not found to have significant impact on the fraudulent financial reporting. In addition, as a control variable, the audit firm size have negatively influenced of the fraudulent financial reporting. Keywords : fraudulent financial reporting, audit committee, audit committee characteristics, firm characteristics |