[ABSTRAK
Penelitian ini bertujuan untuk memperoleh bukti empiris mengenai pengaruhefektivitas sistem pengendalian internal terhadap manajemen laba. Efektivitassistem pengendalian internal diukur melalui penilaian atas elemen pengendalianinternal menurut COSO, sedangkan manajemen laba diukur melalui akrualdiskresioner dengan metode yang dikembangkan oleh Kothari et al. (2005).Pengujian hipotesis dilakukan melalui model regresi data panel denganmenggunakan metode efek tetap terhadap 228 perusahaan sampel yang terdaftardi Bursa Efek Indonesia selama tahun 2010 hingga tahun 2012. Hasil penelitianmenyimpulkan bahwa perusahaan yang memiliki efektivitas sistem pengendalianinternal yang tinggi cenderung memiliki tingkat manajemen laba yang rendah.Selain itu, hasil penelitian ini juga menghasilkan kesimpulan bahwa perusahaanyang memiliki penilaian risiko, aktivitas pengendalian, informasi dan komunikasi,serta pemantauan yang baik dalam sistem pengendalian internal cenderungmemiliki tingkat manajemen laba yang rendah.

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ABSTRACT
This research aims to provide empirical evidence regarding the effect of internalcontrol system effectiveness on earnings management in companies. Internalcontrol system effectiveness is measured by effectiveness score based on theCOSO?s internal control elements, while the earnings management is measured bydiscretionary accruals which was developed by Kothari et al. (2005). Thehypothesis is examined using panel data regression with fixed effect method tosample of 228 companies which listed in Indonesian Stock Exchange during 2010to 2012. The result of this research concludes that companies with higherinternalcontrol system effectiveness could gain lower earnings management practice.Furthermore, the result of this research concludes that companies with better riskassessment, control activities, information and communication, and monitoring intheir internal control system could gain lower earnings management practice.;This research aims to provide empirical evidence regarding the effect of internalcontrol system effectiveness on earnings management in companies. Internalcontrol system effectiveness is measured by effectiveness score based on theCOSO?s internal control elements, while the earnings management is measured bydiscretionary accruals which was developed by Kothari et al. (2005). Thehypothesis is examined using panel data regression with fixed effect method tosample of 228 companies which listed in Indonesian Stock Exchange during 2010to 2012. The result of this research concludes that companies with higherinternalcontrol system effectiveness could gain lower earnings management practice.Furthermore, the result of this research concludes that companies with better riskassessment, control activities, information and communication, and monitoring intheir internal control system could gain lower earnings management practice.;This research aims to provide empirical evidence regarding the effect of internalcontrol system effectiveness on earnings management in companies. Internalcontrol system effectiveness is measured by effectiveness score based on theCOSO?s internal control elements, while the earnings management is measured bydiscretionary accruals which was developed by Kothari et al. (2005). Thehypothesis is examined using panel data regression with fixed effect method tosample of 228 companies which listed in Indonesian Stock Exchange during 2010to 2012. The result of this research concludes that companies with higherinternalcontrol system effectiveness could gain lower earnings management practice.Furthermore, the result of this research concludes that companies with better riskassessment, control activities, information and communication, and monitoring intheir internal control system could gain lower earnings management practice.;This research aims to provide empirical evidence regarding the effect of internalcontrol system effectiveness on earnings management in companies. Internalcontrol system effectiveness is measured by effectiveness score based on theCOSO’s internal control elements, while the earnings management is measured bydiscretionary accruals which was developed by Kothari et al. (2005). Thehypothesis is examined using panel data regression with fixed effect method tosample of 228 companies which listed in Indonesian Stock Exchange during 2010to 2012. The result of this research concludes that companies with higherinternalcontrol system effectiveness could gain lower earnings management practice.Furthermore, the result of this research concludes that companies with better riskassessment, control activities, information and communication, and monitoring intheir internal control system could gain lower earnings management practice., This research aims to provide empirical evidence regarding the effect of internalcontrol system effectiveness on earnings management in companies. Internalcontrol system effectiveness is measured by effectiveness score based on theCOSO’s internal control elements, while the earnings management is measured bydiscretionary accruals which was developed by Kothari et al. (2005). Thehypothesis is examined using panel data regression with fixed effect method tosample of 228 companies which listed in Indonesian Stock Exchange during 2010to 2012. The result of this research concludes that companies with higherinternalcontrol system effectiveness could gain lower earnings management practice.Furthermore, the result of this research concludes that companies with better riskassessment, control activities, information and communication, and monitoring intheir internal control system could gain lower earnings management practice.]