The impact of audit committee on financial performance: Application in IDX 30 Indonesia

In the era of globalization, all companies are moving towards providing financial reporting that can provide the information that users need. Through the company's financial reporting, the economic conditions of the company can be known by outsiders. The quality of financial reporting is related to the overall performance of the company as reflected in corporate profits and the performance of the company as realized in the form of rewards from the capital market. Every company needs to have audit quality because there is a set standard for all operational activities in the company in order for the company to achieve its goals and objectives. The Financial Accounting Standard Board (FASB) has recognized that its best committee is involved in the financial reporting process and actively contributes to the creation of more effective corporate governance practices. This study aims to determine the impact of the audit committee, measured by the competence of the audit committee, the number of audit committee members, and the frequency of audit committee meetings, on the financial performance of the companies, assessed using Return on Assets (ROA) and Return on Equity (ROE). The population of this study consist of publicly traded companies listed on the Indonesia Stock Exchange. The sample includes companies listed in the IDX 30 index companies in 2022. IDX 30 index companies have the largest market capitalization and are generally referred to as bluechip stocks. The analytical method employed is multiple regression analysis using SPSS. The research results from the t-test indicated that the competence of the audit committee had a positive (+) effect on ROA and ROE. The number of audit committee members had a negative (-) effect on ROA, but a positive (+) effect on ROE. Lastly, the frequency of audit committee meetings has a negative (-) effect on both ROA and ROE. According to the results of the F-test result, all independent variables simultaneously affect the dependent variable ROA and ROE. Keywords: Audit Committee, Financial Performance, IDX 30, Indonesia