Audit Report Lag Research Articles

The Characteristics of Auditee and Audit Report Lag

The purposes of this study was to examine the effect of auditee characteristics as reflected by ROE, company size, DER and PAF’s (Public Accounting Firm) reputation on Audit Report Lag. Companies engaged in Real Estate and Property listed on the Indonesia Stock Exchange for the period 2011-2014 are used in this study. This sector was chosen because many investors are interested in investing in the real estate and property sector. The purposive sampling method was chosen as the basis for determining the sample so that a sample of 39 companies was obtained. The type of data in this study is quantitative data derived from secondary data in the form of financial reports and auditor reports which can be obtained from the page www.idx.co.id or the Indonesia Capital Market Directory (ICMD). SPSS 21 software was used to analyze research data. The results showed that ROE and company size had a significant negative effect on Audit Report Lag. DER has no effect on Audit Report Lag, while PAF's reputation has a positive effect on Audit Report Lag

The effect of audit partners’ workload compression on audit quality across Europe

The effect of audit partners’ workload compression on audit quality has received extensive attention. Prior literature presents mixed results in different audit market settings such as US, China and Australia. But little is known in the European audit market. Under the same audit market setting, using different methodologies also leads to inconsistent results. For example, studies using the OLS regression might show contradictory findings with that using the partner fixed effect model. To fill the evidence gap in EU, we study the data from 16 European countries spanning years 2010 through 2019. We first apply the OLS regression and partner fixed effect model, and then we use multilevel model to reconcile the inconsistent results due to different methodologies. We highlight the use of the multilevel model to address data dependence issues and contextualize the results from client level to partner level. Our aim is to test the association between EU audit partners’ workload compression and audit quality. Our findings suggest that higher workload compression is associated with longer audit report lag, more earnings manipulation, and higher cost of capital. We hope to raise regulators’ awareness of consequences of audit partners’ workload compression.

DETERMINAN AUDIT REPORT LAG (STUDI EMPIRIK PADA PERUSAHAAN LQ-45 TAHUN 2014-2018)

The company's financial performance for each period is always reported in the form of audited financial reports, especially for companies listed on the Indonesia Stock Exchange (IDX). In the submission of the audit report, there is a time difference between the end of the fiscal year and the date of issuance of the audit report, which is called the audit report lag. The factors that affect the audit report lag include company size (Size), Return On Assets (ROA), Financial Distress (FD) and the size of the Public Accounting Firm (KAP). This study aims to determine the effect of these factors on the audit report lag (ARL). The research method used in this research is multiple linear regression analysis method, with a sample of companies LQ-45 listed on the IDX in 2014-2018. The results of the analysis show that simultaneously Size, ROA, FD and KAP have an effect on ARL, while Size and KAP partially affects ARL, ROA and FD have no effect on ARL.

Pengaruh Probabilitas Kebangkrutan, Profitabilitas, Keahlian Komite Audit, Dan Keaktifan Komite Audit Terhadap Audit Report Lag

The research aims to examine the effects of bankruptcy probability, profitability, audit committee expertice, and audit committee activity on audit report lag. The population used is mining company listed in IDX period of 2013-2018 with purposive sampling as sampling techniques and multiple regression as analysis techniques. The test result from SPSS version 23 have shown that bankruptcy probability, profitability, and audit committee activity can be effect on audit report lag, while audit committee expertice can be no effect on audit report lag.

Toward an Archival Measure of the Likelihood of Auditor–Client Management Negotiation: An Exploration of the Audit Lag Measures Conjecture*

ABSTRACTSalterio (2012) hypothesized that adaptations of an audit efficiency measure, audit report lag (the length of time between the financial statement year‐end date and the auditor's report date), could provide measures of underlying auditor–client management (ACM) negotiation likelihood. Salterio argued that these measures would enable archival researchers to examine issues that heretofore were the exclusive domain of experimental and field researchers. Using an audit report lag measure and a measure of abnormal audit report lag lags (the residual based on audit report lag determinants model), we show that a larger lag is associated with higher audit fees after controlling for other known determinants of audit fees. We also show that larger lags are associated with higher levels of discretionary accruals—that is, lower accrual quality. Based on our findings, we suggest that there is support for Salterio's hypothesis that audit report lags and abnormal audit report provide valid archival proxies for the differences in year‐end ACM negotiation likelihood. We suggest that this proxy will allow researchers to study issues related to published accounting numbers in light of whether negotiations are likely to have occurred in addition to providing regulators and others the means to determine what clients of audit firms are more likely to have different types of ACM relationships.

DOES FINANCIAL DISTRESS HAS AN EFFECTS ON AUDIT REPORT LAG? (STUDY ON MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE)

This study aims to examine the effect of financial distress on audit report lag and how the size of CPA Firm moderate the effect between financial distress and audit report lag. This study was held at manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019. The final sample there were 318 observations, with a purposive sampling method. The variable financial distress is measured by the Altman Z Score proxy, which is the best model for measuring the state of financial distress being experienced by the company. The size of CPA Firm is measured by dummy variables, given a value of 1 if it is a Big Four CPA Firm and 0 if it is not a Big Four CPA Firm. This study use multiple linear regression to analyze the data. Based on the results of the analysis found that financial distress has negative and significant effect on audit report lag. It means that the smaller the Z Score of a company (which means the company is experiencing financial distress), the longer the financial statement audit process will be. This negative relationship between financial distress is strengthened by the size of CPA Firm.

Financial Restatement Period: Internal and External Auditing Mechanism

The purpose of this study is to empirically scrutinise the effects of audit quality, audit report lag, and audit committee characteristic towards the length of financial restatements. The population analysed in this study involved companies listed on the Indonesia Stock Exchange from 2016 to 2018. Purposive sampling technique was employed in this research, and the total sample was 153 observations. Multiple regression analysis indicates that audit quality, audit report lag, and audit committee characteristic are statistically significant toward the length of financial restatements. The audit committee characteristic and audit report lag compress the length of financial restatements, while the audit quality extends the length of financial restatements.

Karakteristik Komite Audit Pada Audit Report Lag

This study examines the relationship between the characteristics of the Audit Committee and Audit Report Lag. Audit committee characteristics are measured by several variables, namely the size of the audit committee, the independence of the audit committee, and the audit committee meeting. This research was carried out on manufacturing companies listed on the Indonesia Stock Exchange in 2014-2016. The number of samples used in this study were 44 companies obtained by purposive sampling method. Data analysis techniques were carried out using multiple linear regression analysis techniques. Based on the results of the analysis, it shows that the audit committee characteristics as measured by the size of the audit committee have a significant negative effect on audit report lag. This study also found that the independence of the audit committee had a positive influence and the audit committee meeting had no effect on audit report lag.
 Keywords: Audit Committee Size; Audit Committee Independence; Audit Committee Meeting; Audit Report Lag.

OPINI AUDIT, AUDIT REPORT LAG, REPORTING DELAY, KAP, DAN EPS SEBAGAI DETERMINAN HARGA SAHAM

The information about company’s financial performance can be obtained by investor in company’s financial report. Some of the informations are audit opinion, audit report lag, reporting delay, KAP, and EPS. That informations are used by investor to do an investment analysis through financial report that can influence investment decision. Investor’s investment decision can influence stock price change. The purposes of this research are to determine the simultan and partial effect of audit opinion, audit report lag, reporting delay, KAP, and EPS on stock price. Research type that is used quantitative method and descriptive approach. Research data are financial reports and stock prices with banking companies listed on Indonesia Stock Exchange (BEI) within year of 2016-2018 as a population. Purposive sampling is used as a sampling method so obtained 23 samples. The research method is using multiple linier regression analysis. The results of this research are simultaneously audit opinion, audit report lag, reporting delay, KAP, and EPS have significant influence to stock prices. Partially, reporting delay and EPS have significant positive influence to stock prices. Meanwhile, audit opinion, audit report lag, and KAP have no effect on stock prices.

Tax avoidance and audit report lag in South Africa: the moderating effect of auditor type

PurposeThe purpose of this paper is to examine the association between audit report lag (ARL) and tax avoidance and test whether external auditor type affects this relationship.Design/methodology/approachARL is measured as the number of days from fiscal year-end to the date of the auditor’s report, while tax avoidance is measured using effective tax rate.FindingsUsing a sample of 45 South African companies over the period of 2010–2013, the authors document that ARL is positively associated with tax avoidance and this relationship remains positive when the company is audited by a Big-4 audit firm and not significant when the company is audited by a non-Big-4.Originality/valueThe authors’ findings have important implications for auditors aiming to reduce audit risk as they may consider the impact of tax avoidance and pay more attention to companies with a high degree of tax avoidance.

AUDIT REPORT LAG PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA

This research examines the factors that influence audit report lag. The independent variables in this research are firm size, profitability, solvability, accounting firm size, age of company, audit committee size, independent board of commissioners, and ownership concentration. Audit report lag as the dependent variable in this research. The research population is manufacturing companies listed on the Indonesia Stock Exchange for the period of 2016-2018. There are 228 data that meet the sample criteria. The samples are collected using purposive sampling method. This research is analyzed using multiple regression analysis. The result identified that firm size, profitability, age of company had influence on audit report lag. While solvability, accounting firm size, audit committee size, independent board of commissioners, and ownership concentration had no influence on audit report lag.

Audit committee quality and audit report lag: the role of mandatory adoption of IFRS in Saudi companies

This paper aims to examine the effect of audit committee characteristics on audit report lag, and also explores whether this effect will vary between before and after mandatory adoption of IFRS in Saudi listed companies. Based on a Saudi sample of 388 firm-year observations from 2015 to 2018, the Poisson regression analysis shows that among audit committee characteristics, only audit committee financial experience significantly influences the timing of financial reporting. The result indicates a weak influence of audit committees on timeliness of financial reporting, which is consistent with the results of most of previous studies. On the other hand, the results show a strong impact of the adoption of IFRS on the context of that relationship, where the results show the impact of IFRS on audit report lag, audit committee quality and the association between them.

Does managerial entrenchment affect audit report lag?

We examine the association between audit report lag (ARL) and managerial entrenchment using data spanning 2008-2016. We use regression analysis and data obtained from publicly available sources to construct our sample consisting of 5,155 firm-year observations and 807 unique firms to investigate whether the behavior of entrenched managers influences the time it takes auditors to complete an audit. The length of the annual audit is the most critical determinant of the timeliness and relevance of the financial reports. Our proxy for managerial entrenchment is the entrenchment index (EINDEX) as constructed by Bebchuk, Cohen, and Farrell (2009). We find a negative relation between audit report lag and the entrenchment index. We stratify the entrenchment provisions in line with existing literature and find a negative association between the provisions that restrict shareholder rights and the provisions that discourage hostile takeovers. Overall, our findings suggest that management entrenchment curtails managerial opportunism and reduces the auditors’ efforts, and the time auditors spend to complete the audit.

Indirect Effects of Regulatory Changes: Evidence From the Acceleration of the 10-K Filing Deadline

This study responds to a recent call for research on the indirect effects of regulatory changes and examines the audit office effects of changes in client time pressure, using the first acceleration of the 10-K filing deadline as the primary research setting. The extant literature provides evidence that increased client time pressure adversely affects the timing and quality of individual engagements. We argue that because audit offices possess finite resources and production capacity, client-level pressure can have office-level effects. We document within-office differences related to changes in audit timeliness. In the same audit office, clients with no pressure (with pressure) experience an increase (a decrease) in audit report lag post-acceleration. This evidence suggests that auditors alter the timing of concurrent engagements in response to client pressure, and clients of the same office are affected differently by changes in time pressure. We also document across-office differences in audit/filing timeliness and audit quality. Clients of audit offices with more time pressure across the entire client portfolio have a greater increase in audit delay, are more likely to file late, and experience lower audit quality. Taken as a whole, our results are consistent with client pressure producing office effects as a result of the auditors’ response to increased resource constraints. These results should be informative to regulators and practitioners, because they suggest there are indirect costs associated with regulation and such effects are not limited to directly affected clients. Further, the results indicate that auditors do not always respond to changes in resource requirements in a manner that prevents undue strain.

회계법인의 합병이 감사보고 시차 및 감사품질에 미치는 영향

회계법인의 합병이 감사보고 시차 및 감사품질에 미치는 영향

Determinants of Audit Report Lag: Effect of Corporate Governance in Listed Companies in the Malaysian Construction Industry

Determinants of Audit Report Lag: Effect of Corporate Governance in Listed Companies in the Malaysian Construction Industry

PENGARUH PROFITABILITAS, SOLVABILITAS, DAN DUKURAN PERUSAHAAN TERHADAP AUDIT REPORT LAG PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2016-2018

The timeliness of submitting financial statements is a important characteristic for accounting information because of information that has passed by market participants in the process of making decision for investment, because of the information submitted could be lose its relevance value. The purpose of this research is to analyze profitability, solvency, and company size of the audit report lag on listed manufacturing companies on the Indonesia Stock Exchange period 2016 – 2018. This research used 128 population. The research sample was taken using purposive sampling method, thus obtaining 98 samples. Data analysis techniques using documentation by analyzing financial data in the listed report financial manufacturing companies on the Stock Exchange in 2016 – 2018. Testing is done with the classic assumption test, multiple linear regression test, analysis coefficient of determination, F test, and t test. The results showed profitability, solvency, and company size have a positive effect and significant to the audit report lag to the listed audit report lag on the Indonesia Stock Exchange in 2016 – 2018.

Audit Lag, Tenure, Age, Size, Profitability and Solvent Resistance to Stock Volatility with Public Accountant Reputation as Moderation

Accordance with the principle of transparancy of financial statements and annual reports announce by the public company as an important element to avoid the gap time that might causing potentially negative effects information for investors, which thus delayed information phenomenon of the annual report issuer's in year 2019 recorded still reaching 2.4 highest from the year 2018, while the largest increase delayed reporting in the year 2020 for financial performance year end 2019 occurs because of covid-19 pandemic. The research will be conducted on a group of manufacturing companies listed on the Indonesia Stock Exchange with period year 2015 until 2020 and not included in the delisting list until the year 2020. The results obtained audit report lag has significant effect on the stock volatility

PENGARUH CORPORATE GOVERNANCE DAN AUDIT TENURE TERHADAP AUDIT REPORT LAG PADA PERUSAHAAN LQ45

This study aims determine the effect of corporate governance and audit tenure on audit report lag on LQ45 companies listed on Indonesia Stock Exchange in 2016-2018. This research using secondary data. Sampling in this study using purposive sampling using predetermined criteria. Selected samples from companies that Included in LQ45 index on the Stock Exchange for 2016-2018 were 22 companies. The analysis technique used in this study is multiple Linear regression analysis and uses the Eviews version 9 application .The results of this study indicate that partially only internal audit variables have a significant effect on audit report lag, while the board of commissioners, audit committee and audit tenure have no significant effect on audit report lag.

Auditor Switching, Financial Distress, and Financial Statement Fraud Practices with Audit Report Lag as Intervening Variable

This research aims to examine Auditor Switching and Financial Distress's effect on the possibility of Financial Statement Fraud occurrence, which is proxied by using the F-Score formula, and Audit Report Lag Intervening variable. This study's subjects are companies engaged in manufacturing and listed on the Indonesia Stock Exchange (IDX) with a research period in 2014-2018. The sample in this study used a non-probabilistic purposive sampling technique with a total of 27 manufacturing companies. The analysis technique in this study uses Partial Least Square (PLS) with smart PLS 3.0 tools. Results indicate that financial distress and audit report lag directly affect Financial Statement fraud. Auditor report lag as an intervening variable does not influence the relationship between auditor switching, financial distress, and Financial Statement fraud. These results imply that investors must be more careful in investing in the company with a lag in their audit reports. It is also suggested that management must continue to be cautious with the opportunity to do fraud in the financial statement.