Abstract
This study aims to verify the correlation between corporate governance mechanisms, reflected independent commissioners, audit committee and audit tenure to audit report lag, and the audit complexity has able to moderate the relationship between corporate governance mechanisms to audit report lag. This study uses a population of manufacturing companies that publish their financial statements on the Indonesian Stock Exchange in 2015-2017. The samples are selected with a purposive sampling method. There is 100 manufacturing company selected as the sample for the period of 2015-2017. This study was tested by using the Moderate Regression Analysis test. The results of this study indicate that the audit committee and audit tenure have a negative effect on audit report lag, but the independent commissioner has an insignificant effect on audit report lag. Audit complexity is proven to increase audit report lag as an increase audit committee. This research provides the capital market authority (OJK) to issue policies and strict sanctions, thus encouraging companies to publish audited financial statements more time.
Highlights
Audit Report Lag is the period of completion of the audit from the closing date of the company book to the date stated in the audit report
Based on the results of statistical testing, there is a rejection of hypothesis 1, that the independent commissioner has not negatively affect on audit report lag
This hypothesis did not support agency theory related to supervision by an independent commissioner who can reduce audit report lag, because the independent commissioners have not been able to carry out their functions as one of the corporate governance mechanisms to the maximum and the position of the independent commissioners is still limited to meeting the regulations applied by the OJK
Summary
Audit Report Lag is the period of completion of the audit from the closing date of the company book to the date stated in the audit report. The shorter the audit report lag period, the shorter the time needed to submit an audited annual financial report so that the publication of the company's annual financial statements will be faster and its relevance maintained. As much as possible the audited report is completed on time so that they can be submitted to the IDX on time, if this happens, it will have an impact on the increase or decrease in share prices. This is because the audited financial statements contain earnings information to make a decision to buy or sell ownership owned by investors. Companies must be able to make the audit time is not too long
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