Home / Vol. 1 - No. 3 / Article

THE EFFECT OF WHISTLEBLOWING SYSTEM, INDEPENDENT COMMISSIONERS, LEVERAGE, AND AUDIT TENURE ON FINANCIAL REPORT INTEGRITY (A STUDY OF CONSUMER NON-CYCLICAL COMPANIES ON THE INDONESIA STOCK EXCHANGE 2022-2024)

Abstract

Incidents of financial statement manipulation in the consumer non-cyclicals sector suggest shortcomings in firms’ internal control systems. This study examines the effects of whistleblowing systems, independent commissioners, leverage, and audit tenure on the integrity of financial statements among consumer non-cyclicals companies listed on the Indonesia Stock Exchange (IDX) during 2022–2024. The research adopts a descriptive quantitative design and applies purposive sampling, resulting in a sample of 100 companies. Secondary data were analyzed using multiple linear regression. The findings indicate that leverage has a positive effect on financial statement integrity, whereas whistleblowing systems, independent commissioners, and audit tenure do not have a significant effect. The study concludes that companies should optimize their financial structure and auditor rotation practices while strengthening internal oversight to improve the credibility of financial reporting.