Board financial expertise and audit quality in Indonesia: moderating role of family board

Purpose This research aims to examine the moderating role of the family board on the effect of board financial expertise on audit quality. Design/methodology/approach This research uses panel data regression to test the research hypothesis. The sample of this research is non-financial companies listed on the Indonesia Stock Exchange from 2010 to 2022 with a total of 1,994 observations. Findings The research findings disclose the board financial expertise improves audit quality. Whereas family board decreases the positive effect of board financial expertise on audit quality. Originality/value To the best of the authors’ knowledge, this research is the first to conduct a comprehensive analysis related to the effect of board financial expertise on audit quality by considering the moderating role of the family board. This research found a family board had a tendency to do things in favour of their family during the COVID-19 crisis, leading to a decrease in audit quality achieved by board financial expertise.