Audit Report Research Articles

THE INFLUENCE OF COMPANY SIZE, PUBLIC ACCOUNTING FIRM SIZE, AND PROFITABILITY ON AUDIT REPORT LAG

This research aims to investigate company size, KAP size, and profitability on Audit Report Lag. The research sample is derived from 74 companies in the Basic and Chemical Sector listed on the Indonesia Stock Exchange (BEI) during the period from 2019 to 2022. The study investigates the influence of company size, KAP size, and profitability on Audit Report Lag. The research methodology employed is quantitative research using SPSS version 26, 2019. The research type used is causal research, aimed at testing hypotheses regarding the influence of one or more independent variables on another dependent variable. The research findings state that Company Size, Audit Firm Size, and Profitability do not significantly impact the Audit Report Delay in companies within the Basic and Chemical Industry sector listed on the Indonesia Stock Exchange From 2019 to 2023.

Opini Audit, Nilai Aset, Dan Kemandirian Daerah Sebagai Determinan Audit Delay: Studi Empiris Pada Pemerintah Provinsi Di Indonesia 2018-2021

Since 2003, Indonesia has gone through a financial reform. Based on Law No. 13/2004, the Audit Board of Indonesia (BPK) is required to submit the audit report (LHP) including the audit opinion to the Regional People’s Representative Council (DPRD) no later than 2 (two) months after the unaudited financial report is submitted by the local government. This becomes BPK's guideline in completing its audit to avoid delays. During 2017-2021, the audit opinion on local government financial reports (LKPD) has increased. This increase in opinion includes an increase in the unqualified opinion (WTP) to 92.4% of the 2021 financial statements from 76% in 2017. This study aims to answer research gaps related to the effect of audit opinion, local government size through asset value as a proxy, and local autonomy on audit delay. Furthermore, it is important to obtain empirical evidence about the effect of opinion, local government size, and local autonomy on audit delay.

QUALITATIVE ANALYSIS ON THE INTERFERENCE AND CAUSALITY BETWEEN ACCOUNTING AND AUDITING FOR ROMANIAN COMPANIES “TOP TRADED” LISTED AT THE BUCHAREST STOCK EXCHANGE

The instability generated by legislative changes, price volatility, difficulties in obtaining and maintaining financial stability are realities that characterize the current economic situation, and the first indications of significant uncertainties regarding the continuity of an entity's activity can be obtained from the financial statements and the audit report, consequently, it becomes essential to assume the responsibilities that administrators and financial auditors have in assessing the adequacy of the going concern principle. The objective of the research is the analysis of how the auditor, by belonging to the Big 4 or Non-Big 4 category, the audit opinion, the number of key audit aspects included in the audit report, confirms the positive or negative implications on the principle of business continuity. The research methodology involved qualitative analysis by manually extracting data from the audit reports issued for the period 2018-2022, for a sample that includes 45 companies "top traded" from Romania listed on the Bucharest Stock Exchange (BSE). Following the analysis, it was found that the assumption of continuity of activity in the preparation of the individual annual financial statements, assumed by the management of the company, is adequate in 78% of the cases for the studied sample.

The Influence of Financial Distress, Auditor Switching, Profitability, Audit Quality on Audit Delay

Audit delay is the period for completing the annual financial report audit, namely from the date the company's books are closed to the date stated in the independent auditor's report. The length of the audit delay affects the value of the audited financial statements. This research aims to find out whether Financial Distress, Auditor Switching, Profitability, and Audit Quality affect Audit Delay. The data used in this research is secondary data in the form of audited financial reports. This research population was obtained using methods from non-cyclical consumer sector companies listed on the IDX during the 2020-2022 period. Based on predetermined criteria, a sample of 129 companies was obtained. The analytical method used is multiple linear regression analysis with the STATA 17 software tool. The research results show that financial distress affects audit delay. Meanwhile, auditor switching, profitability, and audit quality do not affect audit delay.

The moderating role of professional commitment in the relationship between time budget pressure and sustainable audit quality: The mediating role of professional skepticism

The study aimed to identify the relationship between time budget pressure and the quality of external auditing in the Jordanian environment through the mediating role of professional skepticism. The moderating role of external auditors' professional commitment in this relationship was tested. The study population consisted of certified Jordanian accountants. 234 questionnaires were distributed to the respondents. The study indicated that certified Jordanian accountants are subject to a high level of pressure, in addition to having a high level of audit quality and professional skepticism, and they are professionally committed. The results of the analysis also indicated that high professional skepticism affects the quality of the external audit and that there is an impact of time budget pressure on the quality of the audit, as the pressure of deadlines for preparing audit reports reduces the level of professional skepticism practiced by external auditors in Jordan. The results also indicated that auditors' professional commitment moderates the relationship between time budget pressure, the level of professional skepticism, and audit quality. Interestingly, there is no moderating role for professional commitment in the relationship between professional skepticism and the quality of external auditing in Jordan. This study emphasizes the need for auditors to maintain professional skepticism when exposed to pressures, including time budget pressure, in order to produce high-quality audit reports.

Perinatal mortality in the municipality of Panchimalco, San Salvador: a case series.

Perinatal mortality is an indicator that reflects the impact of maternal and infant care in a country. This study presents nine cases of perinatal mortality that occurred in the municipality of Panchimalco, El Salvador. The information was obtained from audit reports. The mothers of the deceased infants were aged between 17 and 43 years, did not use contraceptive methods, had incomplete prenatal controls and averaged a gestational age of 31 weeks. Three deliveries were attended in the community. Most perinatal deaths occurred before delivery due to unknown causes, and live births were preterm. We identified factors such as deficits in comprehensive care for women. Further studies are needed to determine the main factors influencing perinatal deaths in El Salvador. Motivation for the study. It is necessary to understand the maternal and infant characteristics of perinatal deaths. Additionally, it is required to generate evidence that contributes to a better understanding of these events. Main findings. Nine cases of perinatal deaths with maternal-fetal risk characteristics were identified. Most deaths occurred before delivery, with prematurity predominating in the neonates. Implications. Understanding the maternal and infant characteristics of perinatal deaths is essential for developing preventive strategies aimed at reducing risk factors related to perinatal mortality.

The role of internal audit, as one of the governance mechanisms, in improving the disclosure of social responsibility in the Sudanese banking sector.

The study aimed to show the importance of internal auditing and the extent of the interactive relationship between it in a way that improves voluntary disclosure of social responsibility. The researcher used the deductive approach in choosing the research problem and setting the scientific hypotheses, historical approach and also the statistics analysis that was dependable in the field study. The sample population of the study represented in accountants, financial reviewers and academics, the study concluded that the disclosure of audit reports and the degree of fluctuations to which the facility is exposed leads to predicting the extent of continuity of government agencies for their social responsibility. This study recommends the necessity of developing a guide for corporate governance mechanisms and standards in Sudan and developing and updating regulations and laws.

Faktor-Faktor Yang Mempengaruhi Audit Switching : Opini Audit, Ukuran KAP Dan Audit Delay

This research aims to investigate the factors that influence companies in carrying out audit switching or changing auditors. Specifically, this research analyzes the influence of audit opinion, size of the Public Accounting Firm (KAP), and audit delay on a company's decision to change auditors. The issue of audit switching is important considering the existence of regulations that require regular rotation of auditors to maintain audit independence. Using a sample of companies listed on the Indonesia Stock Exchange, this research applies a logistic regression model to test the influence of independent variables (audit opinion, KAP size, and audit delay) on the dependent variable, namely audit switching. The data used comes from financial reports and company audit reports.

Pengaruh Karakteristik Perusahaan Dan Karakteristik Auditor Terhadap Audit Report Lag

This research aims to analyze share price movements on the Indonesia Stock Exchange from 2018 to Abstract- The purpose of this writing is to examine and analyze the factors that influence auditor efficiency in completing the audit process which is proxied by audit report lag. The factors used in this research were selected by looking at company characteristics and auditor characteristics. Design/methodology/approach, company characteristics are proxied by Board Independence, financial condition, and profitability, while auditor characteristics are proxied by auditor reputation. The population of this research is all companies listed on the Indonesia Stock Exchange in 2018-2022. Based on the purposive sampling method, the number of samples obtained from 231 companies. Findings, ehe research results show that partially the financial condition variable has a significant negative effect on audit report lag. Meanwhile, the auditor reputation variable shows a significant influence on audit report lag.

KAJIAN AUDIT REPORT LAG DARI PERSPEKTIF TATA KELOLA KORPORASI: EKSPLORASI PERAN KUALITAS AUDIT SEBAGAI VARIABEL MODERASI

Audit report lag is an important aspect of accounting quality. However, there is a lack of previous studies investigating why companies have auditors sign financial reports late; others need less time to do so. This study determines the factors affecting the audit report lag from a corporate governance perspective during COVID-19. In addition, the role of audit quality as a moderating variable between corporate governance and audit report lag is also rare. Ninety-seven publicly listed companies participated in this study. The secondary data from 2019 to 2021 were involved. Agency theory is applied to explain the phenomenon. Moderated regression analysis is applied to gain the result. The result shows that audit tenure significantly affects the audit report lag. In addition, audit quality plays a moderating variable between board size and audit report lag. Hence, audit quality also moderates the relationship between audit tenure and audit report lag. The research has practical implications for reducing audit tenure by reducing auditing report lag. In addition to practical implications, this research also implies the theory where the results of this research can be explained by the agency theory in which to improve the quality of accounting information through the timely submission of financial reports and to shorten the time of signing an audit opinion through the governance mechanisms. Keywords: Size Of The Board Of Commissioners; Board Commissioner Meeting Frequency; Audit Tenure; Audit Opinion; And Audit Quality; Audit Report Lag

Faktor-Faktor Yang Mempengaruhi Audit Report Lag: Pengaruh Umur Perusahaan, Ukuran Perusahaan Dan Reputasi Auditor

Previous research or relevant research is very important in a research or scientific article. Previous research or relevant research functions to strengthen theories and phenomena of the relationship or influence between variables. This article reviews the factors that influence audit report lag, namely the influence of company age, company size and auditor reputation, a study of the tax accounting literature. The purpose of writing this article is to build a hypothesis of the influence between variables to be used in further research. The results of this article's literature review are: 1) the influence of company age on audit report lag; 2) company size influences audit report lag; and 3) the auditor's reputation influences audit report lag

Reflections of including key audit matters in the audit quality and audit fees of publicly traded companies in Brazil

Considering the context of the changes implemented by the revised ISA 700, which required including items such as Key Audit Matters (KAMs), this article aimed to examine the effects of the changes in ISA 700 on audit quality and fees. Accounting and market data, information on the responsible audit firms, and the number of KAMs disclosed by publicly traded companies in Brazil were collected from 2014 to 2017. Overall, the results did not demonstrate evidence of improvement in audit quality after adopting the revised ISA 700. Audit fees also did not show statistically significant changes when comparing the period before and after adopting the new requirement. So, the study concluded that, during the four-year period surrounding the adoption of the new requirements, there was no evidence of an increase in audit quality or auditor fees for publicly traded companies in Brazil. This article expands academic discussions in the Brazilian capital market regarding the implications of including KAMs in audit reports, as well as the analysis of the practical effects of applying standards issued by regulatory bodies.

Regulated public accessibility to municipalities’ financial reports and bond interest cost

PurposeIn this study, we examine regulated public accessibility to municipalities’ financial reports and bond interest cost. In particular, we examine whether there is information content in a component of a constrained filing period that is useful to municipal bond market participants. The component of a filing period that we focus on is the period of time between an audit report date and a regulated public accessibility date.Design/methodology/approachTo explore our research question, we collect a sample of observations from municipalities that: (1) are required to post annual/audit financial reports on a centralized state-level repository that includes a “transparent” date stamp on when reports are made publicly available and (2) have issued general obligation bonds. Our sample is limited to one observation per municipality. The sample period is 2006–2019. In terms of approach, we use an ordinary least square (OLS) regression model to empirically test whether the time period between municipalities’ audit report date and state-required repository filing date is associated with general obligation bond interest cost.FindingsWe find support for the idea that there is information content in a component of a constrained filing period. In particular, we hypothesize and find a positive association between the time period between an audit report date and a state filing date and general obligation bond interest cost. Seemingly, this component of time may provide something unique or not available in other components of a constrained filing period (e.g. the fiscal year-end date to the audit report date). In post hoc analyses, we also find that both components of the constrained filing period in our setting (i.e. the audit report date to state filing date and the fiscal year-end date to audit report date) need to be considered for either of the components to be significant. Moreover, although both components are necessary, the audit report date to state filing date component appears to have a slightly stronger association (in terms of statistical significance) with general obligation bond interest costs.Research limitations/implicationsTo our knowledge, Illinois is the only state that provides a date stamp on when municipalities’ financial information is made publicly available on a centralized repository. As such we focus on municipalities in Illinois. While this increases the internal validity of our research, it potentially limits generalizability across other states. Also, as a reflection of the sample constraint, the number of observations in our study is relatively small. As part of post hoc analyses, we take a closer look at our sample, model and variables used to test our hypothesis.Practical implicationsFor stakeholders, each component of a constrained filing period may provide unique information. For example, the time period between an audit report date and a regulated filing date may send a positive signal about the quality of financial management to investors. For regulators, requiring some sort of centralized public access to municipal financial reports that have transparent time constraints may help states provide stronger governance and help lower municipalities’ borrowing costs.Originality/valueWe use a novel approach (with the Illinois date stamp filing information) to examine our research question. Most prior research has often relied on an assumption that the time between fiscal year-end and the audit report date is the component of time that provides useful information to investors (e.g. Henke and Maher, 2016). In our setting, we explore and find that a component of a constrained filing time period (i.e. the date from an audit filing to a required public accessibility filing) may also provide impactful information to investors.

Performance gap and the timing of corporate social responsibility disclosure‐A trust repair perspective

AbstractBased on the theory of firm behavior, we explain the voluntary corporate social responsibility (CSR) disclosure behavior of firms from the perspective of trust repair and regard the process of firms' response to the CSR institution as an important way to trust repair for firms' management. We adopt an event history approach with a sample of Chinese firms listed on the A‐share market from 2008 to 2020 and find that faster engagement in CSR disclosure is one of the important trust repair methods for management when firms face performance gaps, and performance gaps positively incentivize firms to voluntarily engage in CSR disclosure. In addition, managers consider the total costs, risks, and benefits of different trust repair methods, there is a substitution effect between different trust repair methods, and the disclosure of internal audit reports and philanthropic donations negatively moderates the relationship between performance gap and CSR disclosure. Our study has important implications for understanding how firm performance affects CSR strategic decisions.

Pengaruh Ukuran Perusahaan, Solvabilitas dan Laba Rugi Terhadap Audit Delay pada Perusahaan Menufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2019-2020

This study aims to examine the effect of firm size, solvency and profit and loss on audit delay in manufacturing companies listed on IDX for the 2019-2020 period. The population of this study consisted of 175 manufacturing companies listed on the Stock Exchange and the sampling method using purposive sampling. With this method, a sample of 26 companies was obtained with an observation period of 2 years (2019-2020) so that the number of observations was 52. The audit delay variable was measured by the date of issue of the financial statements minus the date of issue of the auditor's report, the size of the company was measured by Ln total assets, solvency is measured by using debt to asset ratio and profit and loss is measured by Ln value of profit and loss. The data used in this research is quantitative data. The data collection technique used in this research is the documentation method and the internet web. The data analysis technique used multiple linear regression analysis. The results showed that: 1) firm size had a significant effect on audit delay, 2) solvency had a significant effect on audit delay, 3) profit and loss had no significant effect on audit delay, 4) firm size, solvency and profit and loss simultaneously had a significant effect on audit. Delay.

Is audit firms' social performance associated with audit firm reputation? Evidence from China

We use the data of Chinese audit firms' philanthropic activities to examine the effect of such activities on audit firms' financial performance, audit quality and auditor retention. We find that audit firms with more socially responsible activities in the prior year earn more total revenues, revenue per partner or shareholder and revenue per accountant in the current year. Besides, clients audited by socially responsible audit firms have higher audit quality and report lower income‐increasing accruals, higher income‐decreasing accruals, fewer below‐the‐line items and less frequent small positive earnings. More interestingly, clients with socially responsible audit firms have fewer auditor changes.

Navigating Delays: Exploring Factors Influencing Audit Timeliness

Purpose: This research explores factors influencing audit timeliness in the food and beverage manufacturing companies listed on the IDX from 2019 to 2023. The study population comprises 26 companies with complete and continuous financial reports during the research period. Design/methodology/approach: The analysis employs multiple linear regression to examine the impact of company size, profitability, solvency, and Public Accountant Reputationon audit report lag. Findings: Results reveal that company size does not significantly affect audit report lag, challenging previous studies. Profitability also shows no significant influence on audit timeliness, contradicting some research findings. In contrast, solvency has a positive and significant impact on audit report lag, indicating longer delays with higher debt-to-total-asset ratios. Moreover, a PAR positive reputation correlates with shorter audit report lag. Practical implications: Understanding these factors can help practitioners, auditors, and regulatory bodies comprehend the dynamics of audit timeliness in the food and beverage industry, facilitating more effective monitoring and decision-making. Originality/value: This research contributes to the literature by providing insights into the nuanced relationships between company characteristics and audit timeliness in a specific industry, offering a valuable perspective for academics and practitioners in auditing and financial management.

The Influence of Company Profitability, Corporate Risk, Audit Report Lag, and CEO Gender on Audit Fee

This research aims to examine the influence of company profitability, company risk, audit report lag, and CEO gender on audit fees and to test the differences in independent variables and dependent variables before and during the COVID-19 pandemic. The object of this research is non-financial sector companies listed on the Indonesia Stock Exchange in 2018–2021. This research uses secondary data. The number of samples in this research was 75. The sample selection technique used is purposive sampling. Data analysis was done using panel data analysis, paired sample t-tests, and Wilcoxon tests. Results show that the audit report lag variable has a positive effect on audit fees. In contrast, the variables of company profitability, company risk, and CEO gender do not affect audit fees. Based on the results of the average difference test, the profitability and audit report lag variables experienced significant changes before and during the COVID-19 pandemic, while the audit fee, company risk, and CEO gender variables did not experience significant changes before and during the COVID-19 pandemic. Keywords: audit fee, company profitability, company risk, audit report lag, CEO gender

Can Critical Audit Matters Be a Signal of Poor Accruals Quality?

SUMMARY We investigate the relationship between critical audit matters (CAMs) and accruals quality. We find that companies with a higher number of CAMs in their audit reports are associated with poorer accruals quality, and this association appears to be driven by recurring rather than nonrecurring CAMs. An examination of specific CAM topics shows that revenue CAMs are associated with lower revenue-related accruals quality, and tax CAMs are associated with poorer tax-related accruals quality, suggesting that CAMs are indicators of poor accruals quality. A cross-sectional analysis shows that the CAM signal about poor accruals quality is attenuated for companies when the information environment is richer, suggesting that a rich information environment restrains the use of discretion in accruals estimation such that CAMs no longer indicate poor accruals quality. Overall, our findings suggest that CAMs can provide a relevant signal of financial reporting quality in certain circumstances. JEL Classifications: M41; M42; M48.

Lactate Dehydrogenase (LDH) audit report on the turnaround time of samples

Lactate Dehydrogenase (LDH) audit report on the turnaround time of samples