The Effect of Profitability, Liquidity, Audit Committee, and Audit Quality on Earnings Quality

Corporate earnings quality includes net income understatement/overstatement, income statement consistency, asset risk actualization, equity maintenance and earnings indicators. This study aims examine various factors that have an impact on earnings quality, such as profitability, liquidity, audit committee, and audit quality. Using a quantitative approach. The population was obtained from all companies listed on the Indonesia Stock Exchange (IDX) in the health sector for the period 2021 to 2023. Purposive sampling was carried out in taking samples with the acquisition of 21 sample companies. This research is motivated by the rampant cases of earnings management in financial reporting resulting in low earnings quality, where quality earnings should be able to accurately display the company's condition. The research conducted shows that liquidity does not affect earnings quality, while profitability, audit committee and audit quality have a significant positive effect on earnings quality.