Abstract: Transparency in disclosing the financial statements is required by decision makers as
appropriate balance and adequate information so important to the company . In the present
financial statements , management took accounting method with a specific purpose . This is
often referred to manajamen profit . Management actions earning management raises a number
of scandals in corporate financial reporting .In this study, a sample of Islamic banking with the
observation period 2010 to 2013. The analytical method used is multiple regression method . The
results showed that simultaneous ( F test ) independent variables used in this study are firm size ,
debt to equity ratio , return on assets , the size of the company , the audit committee and the audit
of ownership has a significant effect on the occurrence of earnings management in the company .
Test results on an individual basis using the t test showed that the only variable return on assets
and institutional ownership has a significant effect on the occurrence of earnings management in
the company .
Keywords : Earnings Management , Profitability , Leverage , Firm Size , The Audit Committee ,
Institutional Ownership