The Role of Corporate Governance Mechanisms, Leverage, and Financial Distress for Improving Audit Quality

This study aims to evaluate the effect of corporate governance mechanisms on audit quality, focusing on the role of independent commissioners and independent audit committees, as well as considering leverage and financial distress factors.Through data analysis of transportation companies listed on the Indonesia Stock Exchange (IDX), this study seeks to provide in-depth insight into how corporate governance and financial conditions affect audit quality.The results are expected to provide significant recommendations for improving audit quality through strengthening corporate governance mechanisms and managing financial conditions more optimally, as well as guiding companies in improving governance practices and providing valuable input for policymakers to develop regulations that support the improvement of audit quality in the transportation sector.Research Hypothesis.Based on the statistical results, the study shows that the independent audit committee and leverage have a significant and positive effect on audit quality.This indicates that transportation companies listed on the Indonesia Stock Exchange with an active independent audit committee and good leverage management tend to have higher audit quality.In contrast, the presence of independent commissioners and financial distress conditions do not significantly affect audit quality.These findings confirm that strong internal oversight mechanisms and effective leverage management can enhance corporate transparency and accountability, and support better corporate governance and sustainable economic development.The results of this study highlight the relevance of the importance of independent audit committees and leverage in improving audit quality, and provide practical insights for the development of more effective governance and audit policies in the transport sector.