T This study aims to determine the relationship between audit committee characteristics with the practice of earnings management in a company. Characteristics of the audit committee that investigated in this study include frequency of audit committee meeting, the size of audit committee, knowledge of members in audit committee independence of audit committee and jointly between frequency of audit committee meeting and knowledge of members in audit committee. While earnings management calculated with discretionary accruals in financial reporting. Discretionary accruals values calculated using the Modified Jones Model. The result showed the jointly between frequency of audit committee meeting and knowledge of members in audit committee are related negatively to earnings management, another variable, frequency of audit committee, size of audit committee and knowledge of members in audit committee are related positively to earnings management. Several control variables in the study, namely firm size, leverage and operating performance, also proved to have in influence on earnings management. Variable that has significant impact are the firm size and operating performance have positively relationship. Leverage has not significant impact and a positively relationship to earnings management.