Tenure audit effect on timeliness of financial statement publication with industry specialist auditors as moderating

Anindya Saputri Irvanitha,Zaki Baridwan,Bambang Subroto

doi:10.20525/ijrbs.v10i8.1498

Abstract

This study aims to empirically examine the effect of tenure audits on the timely publication of financial statements moderated by industry specialist auditors. This study uses a sample of 726 Firm Years, which were obtained through a purposive sampling method from companies listed on the Indonesia Stock Exchange in 2018-2020. This study uses the method of Sub-Group Logistic Regression and Sub-Group Moderation in testing the hypothesis. The results of this study indicate that audit tenure has a negative effect on the timeliness of financial statement publications. This means that the longer the audit period of an auditor, the publication of financial statements will be relatively less timely. The results of this study also show that industry specialist auditors are able to moderate the relationship between audit tenure and the timeliness of financial statement publications. This means that the influence of audit tenure on the timely publication of financial statements in the industry specialist auditor group is greater than in the non-industry specialist auditor group. Therefore, the more specialist the auditor, the stronger the influence between audit tenure on timeliness.

Highlights

Financial statements are an important instrument used by companies to convey information to internal and external users
Based on the second hypothesis testing, it is known that industry specialist auditors moderate the effect of audit tenure on the timely publication of financial statements, so thatuntil with a long engagement period and supported by an industry-specialized auditor, the auditor will tend to be less punctual. This means that the influence of audit tenure on the timeliness of financial statement publications in the industry specialist auditor group is greater than in the non industry specialist auditor group, meaning that the more specialist auditors, the stronger the negative influence between audit tenure on timeliness
This study aims to empirically examine the effect of audit tenure on the timeliness of financial statement publications with industry specialist auditors as moderators in companies listed on the Indonesia Stock Exchange

Summary

Introduction

Financial statements are an important instrument used by companies to convey information to internal and external users. Referring to OJK regulation No.13/POJK.03/2017 Article 2 requires that financial statements reported by public companies must first be audited by an independent auditor. This audit of financial statements aims to avoid material misstatement and is presented in accordance with generally accepted accounting standards in Indonesia. Through the announcement of the submission of audited financial reports No.: Peng-LK – 00004/BEI.PP3/06-2020 which ended on June 2, 2020, there was an increase of 64 companies that had not submitted financial reports in a timely manner

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Conclusion