Title : Chief Risk Officer and Audit Fee: An Investigation from Financial Industries in Indonesia
Authors:
- Vina Kusuma Andriani
- Harymawan Faith
- Suhaily Hasnan
Department : Accounting
Journal Name : Journal of Economics and Business
Kinds of Journal : Sinta 2
Keywords : Audit Fee, CRO, ERM, Firm Risk, Governance
Abstract:
The appointment of a CRO (Chief Risk Officer) Influences the implementation of ERM (Enterprise Risk Management), which reduces risk and lowers audit costs. Financial Services Authority Regulation No.17/2014 in Indonesia Requires Companies to Have an RMC (Risk Management Committee), which is different from a CRO Equivalent to a C-Level. This study examines the impact of a CRO on External Audit Costs. The data consists of financial compans listed on the Indonesia Stock Exchange (IDX) from 2011 to 2020. The results show that compans using a CRO have lower risk, thereby reducing audit costs. Additionally, the Expertise of a Cro Also Impacts a Higher Erm, which in Turn Affects the Reduction of Audit Costs. This study contributes to the practical world by supporting the appointment of a CRO to Reduce Company Risk. Thus, the Company can deliver better performance.
For details : https://ejournal.uksw.edu/jeb/article/View/9322
