Study the Components of Ethics

Study the Components of Ethics
Bagir equates ahklak with morality, which is more a good and bad value than every human deed. While ethics is a science of morals or ethics can be said is a science that learns about good and bad. Some components contained in ethics can be explained as follows. a. Freedom and Responsibility Discussion of ethical issues, taking material objects of human behavior or actions carried out consciously. Thus, ethics must see humans as creatures who have the freedom to act and act while being responsible for their actions and actions. Ethics is a comprehensive plan that links the forces of nature and society with the field of human responsibility. While responsibilities can be claimed or accounted for if there is freedom.
Thus, the problem of freedom and responsibility in ethics is a necessity. Freedom for humans first means, that he can determine what he wants to do physically. He can move his limbs according to his will, certainly within the limits of his nature as a human. So the ability to move his body is indeed unlimited. Human freedom is not something abstract, but concrete, in accordance with the nature of humanity (Suseno, on Research Study). Freedom and responsibility are two sides of the ethical coin that must exist. If both do not exist, then there is also no ethical discussion. Humans have the freedom to act and they should also be responsible for their actions.
There is a reciprocal relationship between freedom and responsibility, so that people who say that, humans are free, then he must accept the consequences that humans must be responsible (Haris, 2007: 3). Thus, in ethics, there is no freedom without responsibility, and vice versa, there is no responsibility without freedom. b. Rights and obligations Rights and obligations are matters that are continuous or correlative with one another. Every right there is an obligation. The first obligation for humans is to respect the rights of others and not interfere with them, while the obligation for those who have rights is to use their rights for their own good and human kindness.
There are philosophers who argue that there is always a reciprocal relationship between rights and obligations. The view called correlation theory is mainly held by followers of utilitarianism. According to them, each person's obligations relate to the rights of others, and vice versa every person's rights relate to other people's obligations to fulfill those rights. They argue that we can only talk about rights in the real sense, if there is a correlation. Rights that have no obligations according to them do not deserve to be called rights (Bertens, 2011: 205).
According to the ethical view of obligation is work that is felt by the heart itself must be done or must be abandoned. That is the conviction of man's position to look good at good things according to the truth and stop evil goods according to the truth, even though to stop or do that he is in danger or happy, suffering from delicacy or pain. While the one who voices that obligation in the heart is his own heart. It is not the heart in the sense of a clot of blood but the subtle feeling that each human being, as a divine gift to himself, is the lamp to illuminate the way of life, or like a lighthouse to show the direction of a ship's traffic (Haris, 2007: 60).
c. Good and bad In discussing ethics it should be about good and bad. Good and bad can be seen from the consequences arising from good deeds and bad deeds. If the consequences arising from his actions are good, then the actions taken are ethically correct, and vice versa if the actions have bad consequences, then it is ethically wrong. Good and bad values are determined by reason and religion. Sense effort in knowing which is good and which is bad is made possible by human experience as well. Based on this experience, in addition to temporal and local good and bad values, reason is also able to capture a bad deed, because of the bad consequences even though the substance of the deed itself does not look bad. And vice versa, there are good deeds, because of the good consequences, even though the substance of the deeds does not look good.
The degree of ugliness does not need to be the same, maybe just rather bad, some are bad really, some are too bad; but all of that is bad because it's not good. It turns out bad is a negative understanding too. Even the actions that are considered bad, because there is no good that should exist. So it was not merely his actions that made him worse (Poejawijatna, 2003: 38).
d. Virtue and Happiness Ethical virtue relates to actions or behaviors that are worthy of admiration and praise. Actions that contain virtue deserve to be admired and praised. Such actions are at a level far beyond the level of vulgar and ordinary actions. Therefore virtue is excellence (something superior and awesome) or an extraordinary quality. It can be concluded that what is meant by virtue in the discussion of ethics are matters relating to the goodness and privilege of character.
Happiness can only be possessed by sentient beings, because only those who can reflect on the situation, realize, and understand the satisfaction they experience. Other than that. Happiness is a subjective state that causes a person to feel that he is satisfied with his desires and realizes that he has something good. This will only be realized by beings who have reason. Therefore, only humans can feel true happiness (Haris, 2007: 60).

Discusses Ethics as a science that investigates ethical or ethical responses

Discusses Ethics as a science that investigates ethical or ethical responses
In discussing Ethics as a science that investigates moral or ethical responses, that is the same as speaking morally (mores). Humans are called ethical, are humans as a whole and overall capable of fulfilling the necessities of life in the framework of the principle of balance between personal interests with other parties, between spiritual with physical, and between being a self-conscious creature and its creator. Including discussing values or norms related to ethics, there are two types of ethics, as follows. a. Descriptive Ethics Descriptive ethics is ethics that seeks critically and rationally to attitudes and patterns of human behavior and what is pursued by humans in life as something of value (Rahmaniyah, on Literature Journal Studies).
This descriptive ethics belongs to the field of empirical science and is closely related to the study of sociology. Associated with the field of sociology, descriptive ethics tries to find and explain awareness, beliefs, and moral experience in a particular culture. Descriptive ethics may be a branch of sociology, but the science is important if we study ethics to know what is considered good and what is considered not good (Zubair, 1995: 93).
Ethical rules that are commonly raised in descriptive ethics are habits, assumptions about good and bad, actions that are allowed or not allowed. According to Keraf, descriptive ethics are: Ethics that examine critically and rationally about human attitudes and behavior, as well as what is pursued by everyone in his life as something of value.
This means that descriptive ethics talks about facts as they really are, namely about human values and behavior as a fact that is related to the situation and entrenched reality. It can be concluded that the reality of appreciation of values or no value in a society that is associated with certain conditions allows humans to act ethically (1991: 23). Descriptive ethics can be divided into two parts, moral history and moral phenomenology. Moral history is a part of descriptive ethics whose task is to examine the ideals, rules and moral norms that have been applied in human life at a certain time and place or in a large environment that includes nations. While moral phenomenology is a descriptive ethic that seeks to find meaning and the meaning of morality from various existing moral phenomena. Moral phenomenology has no component in providing moral instructions or boundaries that need to be held by humans. Moral phenomenology does not discuss what is meant by what is right and what is meant by what is wrong (Haris, 2007: 7).
b. Normative Ethics Normative ethics is the most important part of ethics and the field in which the most interesting discussions take place on moral issues (Bertens, 2011: 19). Normative ethics is ethics that refers to moral norms or standards that are expected to influence behavior, policy, decisions, individual character, and social structure (Rahmaniyah, 2010: 67). This normative ethics is often referred to as moral philosophy or commonly called philosophical ethics. According to Keraf, normative ethics are: Ethics that determine a variety of attitudes and behaviors that are ideal and should be owned by humans or what should be carried out by humans and what actions are valuable in life. So Normative Ethics are norms that can guide people to act well and avoid bad things, according to the rules or norms that are agreed upon and applicable in society (Keraf: 1991: 23) Normative ethics can be divided into two parts. First, normative ethics related to value theories which question the nature of goodness. Second, normative ethics relating to theories of necessity that address the issue of behavior (Haris, 2007: 8).
In short it can be said, normative ethics aims to formulate ethical principles that can be accounted for in a rational manner and can be used in practice. The rules that often appear in normative ethics, namely conscience, freedom and responsibility, values and norms, as well as rights and obligations. From various discussions on the definition of ethics above can be classified into three types of definitions, namely: The first type, ethics is seen as a branch of philosophy that specifically discusses the good and bad values of human behavior.
The second type, ethics is seen as a science that discusses the pros and cons of human behavior in living together. The definition does not see the fact that there are diversity of norms, because of the unequal time and place, finally ethics becomes a descriptive and more sociological science. The third type, ethics is seen as a normative and evaluative science which only gives bad value to human behavior. In this case it is not necessary to show the facts, enough information, advocate and reflect. Definition of ethics is more informative, directive and reflective.

Migration: Meaning, Theory and Impact

Migration: Meaning, Theory and Impact
Migration is the movement of people from one place to another within a certain period. Migration can be permanent or temporary. Migration is generally done to get a better quality of life, whether it be from an economic, social, or religious perspective. Migration is one of the main factors affecting population density and distribution. Areas that are more attractive to migrants will have a higher population density compared to areas that are not attractive. Migration is also one of the factors that influence population growth.
High migration will cause high population growth while high emigration rates will actually cause negative population growth. There are two general scopes of migration, internal and external. The internal scope of migration refers to movements within one's own country between regions while external includes migration between countries. However, Jay Weinstein and Vijayan Pillai in classified the third scope of migration, forced migration, and impact internal migration of economic development. Internal migration is between regions but remains within the same country. This movement is generally caused by differences in the value of driving and pulling factors between regions.
Migration Generally Occurs from the Village to the City In the case of internal migration, migration generally occurs from economically undeveloped regions to economically developed regions. One example is the migration of people to big cities such as from the surrounding villages. The following are some examples of cases of internal migration that we can observe in daily activities Rural-urban displacement. This movement is often equated with urbanization and is one of the factors driving the growth of high urban population and slow progress in villages. Regional movements occur between provinces, districts or between islands.
This movement is generally caused by economic, social, or family factors. Intra-urban / urban movement. This transfer occurs when we remain in the same city but change position. An example is when we do commuting or moving house. Displacement from a city or large city. This transfer generally occurs to retirees or workers who are tired of urban life that is very dynamic and stressful. This movement is also known as urban-rural.
Displacement due to political / policy factors. These transfers are generally caused by policies that force, attract, or encourage someone to move. The policy can be in the form of transmigration, payment of wages if you want to migrate, or forced relocation to certain communities. External External migration includes movement between countries. This movement, like internal migration, is caused by differences in the driving and pulling factors between countries. In the case of external migration, politically, the migration process is more influenced by the policies of the destination country compared to the country of origin.
Documents that must be brought and other requirements become obstacles for external migration. External migration generally occurs between developed and developing countries. Many workers or from developing countries choose to stay in developed countries while working or continuing their studies, but many workers from developed countries are placed in developing countries and feel comfortable, so they continue to live there. The following are some examples of external migration that we can observe in everyday life Refugees can be considered forced migration which migrates externally when he moves to get asylum.
The most obvious examples of these refugees are Rohingya refugees, Syrians, and African minorities exposed to civil war and power conflicts. An expatriate worker can be considered an external migration because he or she migrated to work. An example is the oil engineer from America who works for Shell and is based in Kuwait. Students who study abroad can be considered as external migrants. An example is Indonesian students who are studying in the UK A pensioner can be considered an external migrant when he retires in a country other than his home country. An example is an American retiree who retires in Switzerland because he likes nature.
Migration is forced not to be related to spatial scopes such as internal and external but rather influenced by the scope of will. A migrant is arguably forced when he is forced either directly or indirectly to move from his residence. A concrete example of forced migration is refugees who have fled war areas in Syria and Africa. In addition, refugees who leave from disaster areas such as can also be considered forced migrants. Because, basically, they don't want to leave their homes, it's just that because of a war or disaster, they are forced to find a safer place. Duration of Migration Migrations have different durations. Although according to BPS, a person must stay in a certain place for a period of time to be considered a migration, there are also those who argue that every activity traveling beyond the boundaries is migration.
Therefore, in general there are 4 categories of migration when viewed from the period of residence. The four categories are Permanent Migration is considered permanent when migrants migrate forever, or intend to stay in the area forever. The following are a few examples of permanent migration Transmigration North-South shift in England Urbanization to big cities Slave trade The move from the colony to the host country Migration between countries Semi Permanent Migration is considered semi-permanent when migrants only intend to stay for a few years in their destination.
Offshore Oil Drilling Workers in the Offshore Oil Drilling are classified as Semi-permanent Migrants This migration generally occurs to students studying in other regions / countries, workers with placements outside the city / state, and diplomats and their diplomatic corps. Examples of semi-permanent migration include Seasonal Migration can be categorized as seasonal when migrants only stay for a few weeks or months at their destination. This type of migration generally occurs during the harvest season where farmers and landlords need additional energy to harvest plants for the duration of the harvest season. Therefore, farmers open up employment opportunities for farm workers who want to help harvest. This additional employment creates a pull factor for migration.
After the harvest season, the additional workers will be paid and they return to their original place. Another example of seasonal migration is students who are studying tertiary education at universities outside the city with a considerable distance. For example, these students come from and study. Because of distance and high transportation prices, the student can only go home during semester breaks, so that within a year, he will stay for 2 semesters.
Commuting / Space Shuttle Migration and commuting fundamentally have differences in the length of time and the purpose of their migration. Migration is for permanent or semi-permanent while commuting for just coming / stopping by. However, in this case, it will be simplified so that commuting and migration are considered to be the same, namely moving places, only the duration of time and destination are different. Commuter Line Commuter Trains Are One Of The Transportation Options For Workers Who Make Space Shuttle Commuting generally occurs in workers and students who have a place to live in a different area from the place of work / college.
Examples are workers who live and work or students who live. Causes of Migration There are many theories that explain why people migrate. The theory that is often used when discussing the causes of migration is the theory of push and pull factors. Everett S Lee's Migration Theory This theory was put forward by Everett S. Lee to explain why people move. This theory focuses on two aspects, namely the driving factor and the pull factor of migration.

Ethnography: Definition, Examples & Research Methods

Ethnography: Definition, Examples & Research Methods
Ethnography as a research method was developed in the field of sociology and cultural anthropology since the 20th century. As a research method, ethnography is a typical qualitative research. This research method is very contextual and seeks to uncover the social and cultural significance of the group or social organization under study. This post will briefly discuss what ethnography is, what its characteristics are, how this method is applied and what it looks like for example in social research. Basic knowledge about this method is needed, especially with the development of several variants of methods that have emerged lately to be followed such as autoetnography, feminist ethnographic netnography, a netnographic study of personal branding and so on.
Ethnographic definition Ethnography is a type of research method applied to uncover socio-cultural meaning by studying everyday life patterns and interactions of certain socio-cultural groups (culture-sharing groups) in specific spaces or contexts. An ethnographer not only observes but also seeks to unite in the cultural life of the group of people under study. At this point, we have been able to identify at least two important dimensions, namely the existence of specific socio-cultural groups and cultural unification between researchers and the groups studied.
What did ethnographers observe and learn when researching? From several ethnographic research reports, I see that ethnographers tend to see patterns that exist within the socio-cultural groups under study. These patterns include patterns of behavior, belief systems, language and cultural values that are embraced in everyday life. These socio-cultural groups are countless from the most primitive to modern. For example, we can see the Bedouins as a socio-cultural group. But we can also see subcultures, such as JKT48 fans, flashpackers, urban faming communities and so on as socio-cultural groups. Thus this method can be applied to study broad social groups.
Keep in mind that the cultural elements that bind individuals into one group are the main characteristics that are studied in studies with this method. How to do ethnographic studies? I mentioned earlier that entographers always try to be culturally integrated with the research subject being studied. This unification effort was carried out one of them by applying participatory observation. Cultural unification carried out by ethnographers is a unification in the daily lives of the people studied. That is, ethnographers try to "live life" as the people under study live in various ways such as: associating with them, eating what they eat, often even living and sleeping with them. Ethnographic studies cannot be done instantly because cultural unification requires a long time. There is no stipulation on how long ethnographic research is carried out.
The most important thing is how the researchers successfully immersed in the daily culture of the local community. In addition to participatory observation, in-depth interviews are also often part of the ethnographic study data collection technique. This interview was conducted mainly to key informants who had a significant socio-cultural role in the group. When ethnographers examine an organization, the organization's leader or senior actor can be a key informant.
In principle, studies with this method make use of all available resources in the context of data collection. So, not only participatory observation and in-depth interviews, but also any search including documents in the form of images, videos, audio, diaries, magazines, symbols, artifacts, and all objects related to the focus of research. This can also be seen as an effort by researchers to understand the lives of their research subjects. In practice, ethnographers often prepare diaries during research in the field. This diary is used to record every research subject's daily activities that researchers observe. Thick detail notes are typical of field data created by ethnographers.
Types of ethnographic research Creswell's methodology experts identified several types of ethnographic research, such as life-history, autoetnography, novel ethnography, feminist ethnography, ethnography in electronic media, pothography, video, audio and so on. But in broad outline, this research method can be categorized into two, namely realist and critical ethnography. ethnography Realist ethnography This type is the traditional type in which the researcher tries to obtain individual data or situations from the perspective of a third person.
The role of the third person is very significant because it is able to provide an objective view of the phenomenon under study. This type gives ethnographers an opportunity to narrate the voice of a third person regarding what is observed. Ethnographers take a position "backstage" and position participants' objective views as a "social fact". Reports prepared by realist ethnographers are written without being contaminated by personal and political biases and justifications for "social facts" or also called value-free.
Critical ethnography This type is a more contemporary type where researchers participate in voicing or advocating for the socio-cultural groups studied. Critical ethnographers respond to the conditions of contemporary society which assumes that power, prestige and authority relations systems tend to marginalize individuals from different classes, races and genders. Therefore, the voice of the first person living in the situation or context under study is very important. One characteristic of this type of ethnography is the emancipatory value drive advocated by the researcher, in other words, not value-free.

Principles in Learning and Ethics

Principles in Learning and Ethics
Good principles should strive for as many good consequences as possible and strive to prevent the bad effects of an action as far as possible. Good principles precede and underlie all other moral principles. A good principle is not only a principle that is understood rationally, but also expresses gratitude to God, a bias that is already present in human nature. In particular Suseno (on Tutorial program to improve students performance) breaks down the basic moral principles into three, namely (a) the principle of good attitude, (b) the principle of justice, and (c) the principle of respect for oneself. The principle of good attitude should not harm anyone, the attitude that is required as the basis of relations with anyone is a positive and good attitude.
The second principle is the principle of justice. Fair in essence means giving to anyone what is his right. The principle of justice expresses the obligation to give equal treatment to all other people who are in the same situation and to respect the rights of all parties concerned. An unequal treatment is unjust, unless it can be shown why inequality can be justified. A treatment does not always need to be specifically justified, whereas the same treatment is itself true unless there are special reasons. The third principle is respect for oneself.
This principle says that humans are obliged to always treat themselves as something of value to themselves. This principle is based on the understanding that humans are persons, centers of understanding and will, who have freedom and conscience, and intelligent beings. Humans should not be considered as mere means for a further purpose. The goal must be of value to itself, not merely as a means for further aims or purposes.
Therefore, humans must treat themselves with respect. This principle has two directions, first so that humans do not let themselves be blackmailed, manipulated, and second so that humans do not let themselves be displaced. Suseno (1987: 141-150) states several moral virtues that underlie a solid personality, namely (1) honesty, (b) willingness to be responsible, (3) moral independence, (4) moral courage, and (5) humility . Suseno (1983: 21-22) in the book Ethics in Challenges states that moral values are colorful, loyalty, generosity, justice, honesty and many other values. The core value is the moral nature. Ethics and morals are more or less the same understanding, but in daily activities there are differences, namely moral or morality for the evaluation of the actions carried out, while ethics is for the study of the applicable value system.
Understanding morality is a guide that every individual or group has about what is right and wrong based on moral standards that apply in society. In addition, ethics can also be called moral philosophy is a branch of philosophy that talks about human action. Ethics does not question the human condition, but rather how humans must act, based on certain norms. In line with moral virtues, Rachels (2004: 306-322) said in terms of virtue ethics and ethics of right action, consisting of (1) courage, (2) generosity, (3) honesty, and (4) loyalty.
Bertens (1993: 275) in part two of the Ethics book mentions general ethical themes including (1) conscience, (2) freedom and responsibility, (3) values and norms, (4) rights and obligations, (5) being good human being, and (6) moral system. Different again between ethics and etiquette, as discussed ethics is moral while etiquette means good manners, even though both involve normative human behavior that is giving norms to human behavior and thus states what is permitted to be done and what is not permitted to be done. Understanding etiquette and ethics are often confused, even though the two terms have different meanings, although there are similarities.
Questionable morality appears (tangible) in dishonest and intangible behavior in the mind that is contrary to conscience in planning, implementing and reporting. Morality that deliberately opposes the conscience is a matter of integrity, that is, determination to stand and maintain standard values. Thus, the notion of ethics and morality has the same meaning as a system of values about how humans must still maintain a good life, which then manifests in a pattern of behavior / behavior that is constant and repeating in a period of time, which runs from time to time so that it becomes a habit. The term etiquette comes from Etiquette (French) which means from the start an invitation card that is usually used when kings in France hold official meetings, parties and receptions for royal or royal elites.
Another opinion says that etiquette is a code of courtesy approved by certain communities and becomes the norm and role model in behaving as a good and pleasant member of society. The term ethics as explained earlier is related to morals (mores), while the word etiquette is related to the value of manners, manners in formal association. The equation is about ethical normative human behavior. It means providing certain guidelines or norms, namely how a person should do something and not do something.

Value Relationship Structure

Value Relationship Structure
In addition to these ten types of values, Schwartz also argues that there is a structure that illustrates the relationship between these values. To identify the structure of relationships between values, the assumption held is that the achievement of a type of value has psychological, practical, and social consequences that can conflict or otherwise go hand in hand (compatible) with the achievement of other types of values. For example, achieving an achievement value will conflict with achieving a benevolence value, because individuals who prioritize personal success can hinder their efforts to improve the welfare of others.
Conversely, the achievement of the value of benevolence can go hand in hand with the achievement of the value of conformity because both are oriented towards behavior acceptable to social groups. Achieving values that go hand in hand with one another results in the following system of relationship between values. Relationship Value and Behavior. In human life, values serve as a standard that directs behavior. Values guide individuals to enter a situation and how individuals behave in that situation (Rokeach on Journal Causes and Effects of Examination Malpractices on Educational Standard). Values become criteria held by individuals in choosing and deciding something (Williams in Homer and Kahle, 1988).
a. The types of values of power and achievement both emphasize social superiority and self-esteem.
b. The types of achievement value and hedonism both emphasize self-centered gratification.
c. The types of values of hedonism and stimulation both emphasize the desire to fulfill excitement in oneself.
d. The value types of stimulation and self-direction both emphasize intrinsic interest in a new field or mastering a field.
e. The types of values are self-direction and universalism, both expressing belief in decisions or self-assessment and recognition of the diversity of the nature of life.
f. Universalism and benevolence value types, both emphasize the orientation of the welfare of others and do not prioritize personal interests.
g. The types of values are benevolence and conformity, both emphasizing normative behavior that supports intimate interaction between individuals.
h. Benevolence and tradition value types, both prioritize the importance of the meaning of a group where individuals are.
i. Both conformity and tradition value types both emphasize the importance of meeting social expectations above self-interest.
j. Both tradition and security value types both emphasize the importance of social rules to provide certainty in life. k. The types of values are conformity and security, both emphasizing the protection of rules and harmony in social relations.
l. Security and power value types, both emphasize the need to overcome the threat of uncertainty by controlling the relationships between people and available resources. Based on the existence of conflicting and conflicting value types, Schwartz concludes that value types can be organized in bipolar dimensions, namely:
a. The dimension of opennes to change that prioritizes independent thoughts and actions that are contrary to the dimension of conservation which places limitations on behavior, adherence to traditional rules, and protection of stability. The dimension of opennes to change contains the type of value of stimulation and self direction, while the dimension of conservation contains the type of value of conformity, tradition, and security.
b. The second dimension is the dimension of self transcendence which emphasizes the acceptance that humans are essentially the same and fights for the welfare of others as opposed to the self enhancement dimension that prioritizes the achievement of individual success and dominance over others. The types of values included in the dimension of self transcendence are universalism and benevolence. Whereas the types of values included in the self enhancement dimension are achievement and power.
The type of hedonism value is related to both the dimensions of self enhancement and openness to change. Danandjaja (1985) suggests that values give direction to the attitudes, beliefs and behavior of a person, as well as provide guidelines for choosing the desired behavior in each individual. Therefore values affect behavior as a result of the formation of attitudes and beliefs, so it can be said that values are determinants in various social behaviors (Rokeach, 1973, Danandjaja, 1985).
Value is one component that plays a role in behavior: changes in value can lead to changes in behavior. This has been proven in a number of studies that have successfully modified behavior by changing value systems (Grube et al., 1994, Sweeting, 1990, Waller, 1994, Greenstein, 1976, Grube, Greenstein, Rankin and Kearney, 1977, Schwartz and Inbar- Saban, 1988). Changes in values have been shown to significantly cause changes in attitudes and behavior in choosing work, smoking, cheating, participating in political activities, choosing friends, participating in human rights enforcement activities, buying a car, attending church, choosing leisure activities, relate to other races, use mass media, anticipate media use, and political orientation (Homer and Kahle, 1988).

About the Audit Committee

About the Audit Committee
The implementation of GCG principles as a whole and consistently is fundamental for the organization. One institutional element within the GCG framework that is expected to be able to make a high contribution in the level of implementation is the "Audit Committee". Its existence is expected to be able to improve the quality of the company's internal supervision, and be able to optimize the checks and balances mechanism, which in turn is aimed at providing optimum protection to shareholders and other stakeholders. The main task of the audit committee in principle is to assist the Board of Commissioners in carrying out the supervisory function.
This includes a review of the company's internal control system, impact of audit committees qualities on return on assets, the quality of financial statements, and the effectiveness of the internal audit function. The task of the audit committee is also closely related to the review of the risks faced by the company, and also compliance with regulations. From a simple description of the tasks and functions of the institution, of course, the existence of the audit committee becomes very important as one of the main tools in implementing good corporate governance.
On a practical level, the figure of an audit committee member who is able to carry out his daily tasks effectively is not easy to find. Need special criteria for someone who will serve as chairman and member of the audit committee, given the duties and responsibilities that are very strategic. Based on the aforementioned thoughts the Indonesian Society of Independent Commissioners together with the audit committee practitioners who have high attention to the above, agreed to form the Association of Audit Committees (The World Institute of Audit Committee) which is an organization that will oversee and conduct education and recognize the qualifications of audit committee members in order to accelerate the transformation of the company towards good corporate governance.
One of the responsibilities of the audit committee is to assess the audit report of the external auditor. The position of the audit committee which is part of the board of commissioners and with their competence is expected to optimize the function of external auditors for the company. Communication between the audit committee and external auditors can be oral or written. Public Accountant Professional Standards and Auditing Standards explain the rules regarding communication between public accountants (external auditors) and the audit committee. The responsibilities of the audit committee include: selecting an independent auditor, overseeing the audit process and ensuring the quality of the financial statements.
The audit committee performs its functions in terms of oversight of financial statements, oversees external audits, and observes the internal control system. Formal communication between the audit committee, internal auditor and external auditor ensures that the internal and external audit processes are carried out properly. A good internal and external audit process increases the accuracy of the financial statements and then increases confidence in the financial statements.
The results of the study stated that an effective and independent audit committee improved the quality of financial reporting. The relationship between committee composition and committee interaction with internal auditors. The results of the study are committees consisting of only independent commissioners and one with a financial and accounting background tends to (1) meet with internal auditors more often, (2) have personal access with internal auditors, (3) review internal audit proposals and the results of internal audit.
The selection of auditors is motivated by three sources, namely: the audit environment, the characteristics of the audit company and the client. The decision to choose an auditor or KAP tends to be more determined by factors such as company characteristics, foreign ownership in the company, the type of industry sector, and the size of the company. The issue of corporate governance arises because of the separation between ownership and management of the company (Gunarsih, 2003). The separation between the ownership and management functions of the company raises the possibility of agency problems that can cause agency conflicts, namely conflicts that arise as a result of the desire of management (agents) to take action in accordance with their interests that can sacrifice the interests of shareholders (principal).
In addition to the corporate governance mechanism, ownership structure is thought to also affect the cost of equity. Yao and Sun (2008) show that companies with family ownership as majority shareholders have higher equity costs than other companies. This is due to the control owned by the majority shareholders and the opportunity to obtain greater personal benefits so that investors want a higher rate of return to compensate for these risks (Dyck and Zingales, 2004). Attig et al. (2008) also states that when a company is majority owned by a certain family, the risk of information becomes greater and causes the cost of equity to be higher.