Influence of Audit Committee, Auditor Industry Specialization, and Audit Tenure on Audit Report Lag

Larasati Farumi; Tertiarto Wahyudi; Nur Khamisah

doi:10.24176/bmaj.v6i1.8687

Influence of Audit Committee, Auditor Industry Specialization, and Audit Tenure on Audit Report Lag

Larasati Farumi
Tertiarto Wahyudi
Nur Khamisah

Abstract

This study examines the effect of audit committees, industry specialization auditors, and audit tenure on audit report lag with debt to equity ratio and KAP reputation as control variables. The type of data used in this study is secondary data in the form of the company's annual report. The population in this study are companies listed on the IDX in the 2018-2020 LQ45 index. The sampling method used was purposive sampling and obtained as many as 33 companies. The study results stated that the audit committee had a significant negative effect on audit report lag, industry specialization auditors had a significant positive effect on audit report lag, and audit tenure had no significant negative effect on audit report lag. Limitations in this study are the limitations of the sample and the method used. Future research is expected to be able to examine audit report lag from other perspectives, for example, in terms of auditor or client behavior.

Keywords

audit committee, audit report lag, audit tenure, specialized industry auditor

Full Text:

PDF

References

Abdillah, M.R., Mardijuwono, A.W., & Habiburrochman, H. (2019). The Effect of Company Characteristics and Auditor Characteristics to Audit Report Lag. Asian Journal of Accounting Research , 4 (1), 129–144. https://doi.org/10.1108/AJAR-05-2019-0042

Abdulrahman, N., & Raweh, M. (2019). Audit Committee Characteristics and Audit Report Lag : Evidence From Oman . 9 (1), 152–169. https://doi.org/10.5296/ijafr.v9i1.14170

Ahmed, M.I., & Che-Ahmad, A. (2016). Effects of Corporate Governance Characteristics on Audit Report Lags. International Journal of Economics and Financial Issues , 6 (7Special Issue), 159–164.

Dao, M., & Pham, T. (2014). Audit Tenure, Auditor Specialization and Audit Report Lag. Managerial Auditing Journal , 29 (6), 490–512. https://doi.org/10.1108/MAJ-07-2013-0906

Ghozali, I. (2016). Multivariate Analysis Application With SPSS Program.

Gunarsa, I.G., & Putri, I.A. (2017). The Effect of Audit Committee, Audit Committee Independence, and Profitability on Audit Report Lag in Manufacturing Companies. E-Journal of Accounting , 20 (2), 1672–1703. https://doi.org/10.24843/EJA.2017.v20.i02.p29

Handayani, Y.D. (2016). The Influence of the Independent Board of Commissioners, Tenure Auditors, Industrial Specialized Auditors on Auditor Report Lags (Empirical Study of Mining Companies Registered in Bei in 2010-2014). Journal of Integrated Accounting Research , 9 (2). https://doi.org/10.35448/jrat.v9i2.4312

Handoyo, S., & Hasanah, N. (2017). Corporate Governance, Going Concern Opinion, Subsequent Event and Audit Report Lag. Journal of Business Applications , 17 (2), 1–18. https://doi.org/10.20885/jabis.vol17.iss2.art1

Hassan, Y.M. (2016). Determinants of Audit Report Lag: Evidence from Palestine. Journal of Accounting in Emerging Economies , 6 (1), 13–32. https://doi.org/10.1108/jaee-05-2013-0024

Sulistyawati, I.A., Santoso, A., & Prastiti, D.S. (2019). The Effect of Gender, Task Complexity, Auditor Experience, and Professional Competence on Audit Judgment. JMBI UNSRAT (Scientific Journal of Business Management and Innovation, University of Sam Ratulangi). , 6 (1), 61–72. https://doi.org/10.35794/jmbi.v6i1.24275

Juanita, G., & Satwiko, R. (2012). The Effect of Public Accounting Firm Size, Ownership, Profit and Loss, Profitability and Solvency on Audit Report Lag. Journal of Business And Accounting , 14 (1), 31–40.

Khamisah, N., Listya, A., & Saputri, NDM (2021). Does Financial Distress Have an Effect on Audit Report Lag? (Study on Manufacturing Companies Listed in Indonesia Stock Exchange). Accountability , 15 (1), 19–34. https://doi.org/10.29259/ja.v15i1.13058

Melani, A. (2021). List of 88 Issuers Subject to Written Warnings Due to Not Providing Financial Statements . https://www.liputan6.com/saham/read/4579851/register-88-emiten-yang-kena-peringatan-tertulis-gara-gara-belum-beri-report-keuangan

Nurhayati, S., & Dwi, S. (2014). Effect of KAP Rotation, Audit Tenure, and KAP Reputation on Audit Quality in Manufacturing Companies . 165–174.

Pradipta, A., & Zalukhu, A.G. (2020). Audit Report Lag: Specialized Auditor and Corporate Governance . 8 (20), 41–48.

Sugita, K., & Dwirandra, A.A. (2017). KAP Size Moderates the Effect of Financial Distress and Client Company Size on Audit Report Lag. E-Journal of Accounting , 21 (1), 477–504.

Susandaya, A.A., & Suryandari, N.N. (2021). Dynamics of Audit Committee Characteristics in Audit Report Lag . 21 (2), 175–190.

Tampubolon, R.R., & Siagian, V. (2020). Effect of Profitability, Polvability, Liquidity and Audit Tenure on Audit Report Lag with the Committee as Moderator. Journal of Modernizing Economics , 16 (2), 82–95. https://doi.org/10.21067/jem.v16i2.4954

Udayanti, NK, & Ariyanto, D. (2017). Effect of Auditor Switching, Firm Size, KAP Industry Specialization, and Client Importance on Audit Quality . 20 , 1073–1102.

Wedi, K.R., & Manurung, D.T.H.(2017). Is Good Corporate Governance Important for Audit Report Lag? 204 , 137–148.

Wulandari, R.M., & Wijayanti, P. (2020). Implementation of Good Corporate Governance Against Audit Report Lag. Journal of Chemical Information and Modeling , 53 (9), 1689–1699.

DOI: https://doi.org/10.24176/bmaj.v6i1.8687