AUDIT QUALITY: ITS ROLE IN MODERATING THE EFFECT OF CORPORATE SOCIAL RESPONSIBILITY AND FIRM SIZE ON THE INTEGRITY OF FINANCIAL STATEMENT

Abstract

integrity of financial statements, with audit quality as a moderating variable. The research uses secondary data from financial and sustainability reports of Property & Real Estate companies listed on the Indonesia Stock Exchange for the 2022–2023 period. Data were analyzed using panel data regression and Moderated Regression Analysis (MRA) with Eviews13. The results show that: (a) CSR negatively affects financial statement integrity; (b) firm size has no significant effect; (c) audit quality positively affects integrity; (d) audit quality does not moderate the effect of CSR; and (e) audit quality does not moderate the effect of firm size. These findings suggest CSR disclosures should be managed carefully, as they may reduce financial statement integrity. The minimal variation in firm size implies the need for broader sectoral samples. Enhancing audit quality remains essential to strengthen its moderating role.