Audit Report Lag Research Articles

Peran Spesialisasi Auditor dalam Memoderasi Financial Distress dan Komite Audit Terhadap Audit Report Lag

Objectives. This study aims to investigate the factors that influence the occurrence of audit report lag, considering financial distress and audit committees as the cause, and auditor specialization as a moderating variable.Design/method/approach. This study's population comprises mining companies listed on the Indonesia Stock Exchange (IDX) between 2017 and 2021. A purposive sampling method was employed to select a sample of 229 listed companies. Data analysis involved the use of the multiple linear regression method and the moderated regression analysis.Result/findings. Financial distress and the presence of audit committee are likely to influence the audit report lag. However, it was observed that auditor specialization does not moderate the impact of financial distress and the audit committee on the audit report lag.Theoretical contribution. This study investigates the moderating role of auditor specialization on the impact of financial distress and audit committees on audit report lag. Notably, this simultaneous examination of these variables has not been conducted before.Practical contribution. The findings indicate that both financial distress and the presence of audit committee play crucial roles in ensuring punctual submission of audited financial reports. This punctual reporting helps companies manage their financial condition effectively and enhances the audit committee's effectiveness in improving the punctuality of financial reporting.Limitations. The auditor specialization index in this study exclusively focuses on companies within the mining sector.

THE EFFECT OF AUDIT COMMITTEE AND BOARD OF COMMISSIONERS ON AUDIT REPORT LAG

Corporate governance has emerged as a vital area of study in ensuring transparency and accountability within organizations. Two key elements of corporate governance are the Audit Committee and the Board of Commissioners. The Audit Committee plays a crucial role in overseeing financial reporting and internal controls, while the Board of Commissioners holds responsibility for strategic decision-making and overall governance. The purpose of this study is to determine the influence of the Audit Committee (X1) and the Board of Commissioners (X2) on Audit Report Lag in Banking Companies Listed on the Indonesia Stock Exchange (IDX) for the 2018-2022 period. The research methodology used by the author is descriptive quantitative method. The population used in this study is the banking sector companies. While the data analysis used was the Common Effect Model (CEM) test, Fixed Effect Model (FEM), Random Effect Model (REM), regression test, classical assumptions, and hypothesis testing using the T test (partial) and F test (simultaneous) with using Ms. Excel and Eviews version 12. The results of the research found that the T test hypothesis 1 variable Audit Committee (X2) has an effect on the Audit Report Lag variable (Y), T test Hypothesis 2 the Board of Commissioners variable (X2) has an effect on the Audit Report Lag variable (Y), and the results of the F test show that the variables (X1 & X2) of the Audit Committee and the Board of Commissioners simultaneously affect the variable Audit Report Lag (Y).

Foreign experience and audit report lag

We examine the impact of top management teams (TMTs) foreign experience on audit report lag. We employ a unique sample of Chinese A-share listed firms from 2012 to 2021 and find that the overseas experience (returnee's effect) has a significant positive effect on the audit report lag. We argue that compared with locals, returnees have better education and international experience but often lack local ties and discernment in their native country, which leads to increased audit report lag. We also find that corporate innovation is a potential channel through which overseas experience positively affects audit report lag.

Does accountant CFO matter to auditor?

Chief Financial Officer (CFO) is a chief executive whose responsibilities are related to accounting and audit work. However, there is a downward trend in hiring CFOs with an accounting background. Therefore, we aim to study the relationship between accountant CFO and audit outcomes. This paper use samples of non-financial firms listed on the Indonesia Exchange Stock (IDX) from 2010 to 2018 and using OLS with a cluster by the firm in Stata 17.0 to analyze the relationship between accountant CFO and audit outcomes. We document that accountant CFOs tend to appoint Big4 accounting firms because they demand a higher audit quality. Furthermore, the results suggest that accountant CFOs are more likely to have a higher audit fee, a higher audit quality, and a shorter audit report lag. This finding shows that the accountant CFO can be related to the audit outcomes and this shows how auditors value the accountant CFOs. We expect this paper contributes to enrich the literature on accountant CFO and helps firms in hiring their CFO.

Pengaruh Firm Size, Subsidiaries, Auditor Size, Loyalitas, dan External Audit Report Lag terhadap Audit Fee: Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2018-2020

Purpose: This study aims to analyze the effect of firm size, subsidiaries, auditor size, loyalty, and external audit report lag on audit fees in manufacturing companies listed on the Indonesia Stock Exchange (IDX). Methodology/approach: The population of this study are manufacturing companies listed on the IDX with an observation period of 2018-2020. The research sample consisted of 30 companies from 56 saturated samples determined by purposive sampling technique. The data analysis technique used is multiple linear regression with the help of the SPSS program. Results/findings: The results of the study concluded that partially firm size, auditor size, and loyalty variables affect the audit fee. Meanwhile, the variables of subsidiaries and external audit report lag have no effect on audit fees for manufacturing companies listed on the Indonesia Stock Exchange. Limitation: in manufacturing companies in the consumer goods industry sector only. The limitation of this research is that the research object is not extensive, only exists, so a small sample is obtained. Contribution: This research is useful as information material and for regulators' considerations to provide clearer regulations and explanations related to the determination of audit fees, so that the information obtained is transparent so that it makes it easier for investors to make decisions. It is hoped that with regulations and supervision regarding the amount of the audit fee, relevant information can be obtained.

PENGARUH FINANCIAL DISTRESS, PROFITABILITAS, SOLVABILITAS, UKURAN PERUSAHAAN, DAN REPUTASI AUDITOR TERHADAP AUDIT REPORT LAG (Studi Empiris Pada Perusahaan Industri Pariwisata dan Rekreasi Yang Terdaftar di BEI Tahun 2020-2021)

This study aims to examine the effect of financial distress, profitability, solvability, firm size, and auditor reputation on the audit report lag of Tourism and Recreation industry companies listed on the Indonesia Stock Exchange (IDX) for the 2020-2021 observation period. The samples include 60 data according to the criteria from 30 companies, selected through purposive sampling. The data of financial statements are analyzed quantitatively by multiple linear regression utilizing SPSS 25 software. The results of this study exhibit that financial distress has a positive effect on audit report lag; profitability has a negative effect on audit report lag; and solvability, firm size, and auditor reputation have no effect on audit report lag.

Determinants of Banking Sector Audit Report Lag: Evidence from Indonesia

The main purpose – This study aims to examine the influence of audit committee characteristics, reputation of public accounting firms, and the COVID-19 crisis on the Audit Report Lag (ARL) of the banking sector in Indonesia..Method - This study uses annual panel data from 40 banks listed on the Indonesia Stock Exchange for the 2014-2021 period. The analytical method used in this study is the Random Effect Model.Main Findings – The results show that the frequency of audit committee meetings and the reputation of the public accounting firm have a negative effect on the ARL of the banking sector in Indonesia. Meanwhile, the COVID-19 crisis had a positive effect on the ARL of the banking sector in Indonesia. However, the research failed to prove the influence of the size of the audit committee and women's audit committee on the ARL of the banking sector in Indonesia.Theory and Policy Implications – This research contributes to the development of corporate governance literature on the relationship between the characteristics of audit committees and the reputation of public accounting firms and the ARL of the banking sector, in times of crisis such as the COVID-19 pandemic. This research adds insight for bank regulators, investors, and other business people about the factors that affect the ARL of the banking sector in Indonesia, which allows them to control the ARL more effectively.Novelty – This study is one of the first to consider women's audit committees, the reputation of public accountants, and the COVID-19 crisis in relation to the ARL of the banking sector, particularly in Indonesia. Keywords - Audit report lag, audit committee characteristics, public accounting firm reputation, COVID-19 crisis, Indonesian banking sector.

PENGARUH UKURAN PERUSAHAAN, KUALITAS AUDIT DAN UKURAN PERUSAHAAN TERHADAP AUDIT REPORT LAG PADA PERUSAHAAN SEKTOR KESEHATAN (HEALTCARE) YANG TERDAFTAR DI BURSA EFEK INDONESIA PADA TAHUN 2018-2020

Audit report lag is the time it takes to complete an audit and publish financial reports. The importance of issuing audit reports at the right time has led to numerous studies exploring the factors that affect audit report lag. The purpose of this study was to examine the effect of company size, KAP size, and audit quality on audit report lag in health sector companies. The population that is the object of this research is health sector companies listed on the Indonesia Stock Exchange (IDX) in 2018 - 2020. The total population was 60 companies, this research was obtained using purposive sampling technique which then resulted in 15 research samples. for further investigation. The analysis technique used is multiple linear analysis. Based on data analysis and discussion, it can be concluded that Company Size, KAP Size, and Audit Quality have an effect on Audit report lag. The results showed that company size and KAP size had an influence on audit report lag, while audit quality had no effect. The simultaneous results of the results of this study indicate that there is an influence between company size, KAP size, and audit quality on audit report lag.

Pengaruh Tax Avoidance, Leverage dan Persediaan terhadap Audit Report Lag dengan Ukuran Perusahaan sebagai Variabel Moderating

The purpose of this study was to examine the effect of Tax Avoidance, Leverage and Inventory on Audit Report Lag with Firm Size as a moderating variable. The information presented in this scientific paper consists of all pharmaceutical companies listed on the Indonesia Stock Exchange (IDX) in 2017-2021 in the form of 12 companies and reduced after testing several criteria to 10 companies and a total of 50 companies studied according to the research criteria. The results of this study are: tax avoidance does not affect audit report lag positively, leverage affects audit report lag positively, Inventory Turnover does not affect audit report lag negatively, tax avoidance does not moderate company size on audit report lag positively, leverage moderates firm size on audit report lag negatively, inventory turnover does not moderate firm size on audit report lag positively. The technique for determining the sample for this study was non-probability sampling, using purposive sampling.

Audit Report Lag in Manufacturing: Profitability, Characteristics, Governance Impact

This quantitative research aims to examine the influence of profitability, company characteristics, and corporate governance on the audit report lag in manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2018. The population consists of 138 manufacturing companies, and a purposive sampling technique is employed to select a sample of 58 companies. Quantitative data in the form of company annual reports from 2016 to 2018 are collected and analyzed using multiple linear regression analysis. The results reveal that profitability significantly affects the audit report lag in manufacturing companies during the specified period. However, the characteristics of the company and corporate governance do not show a significant impact on the audit report lag. These findings provide valuable insights for stakeholders and regulators in understanding the factors influencing audit report timeliness in the manufacturing sector, contributing to the improvement of financial reporting practices and corporate governance mechanisms.
 Highlights:
 
 This quantitative study investigates the impact of profitability, company characteristics, and corporate governance on the audit report lag in manufacturing companies.
 The research focuses on companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2018, utilizing a purposive sampling technique.
 Findings reveal that profitability significantly affects the audit report lag, highlighting the importance of financial performance in timely audit reporting for manufacturing firms. However, company characteristics and corporate governance do not show a significant influence on the audit report lag, suggesting the need for further examination of these factors' role in the manufacturing sector's financial reporting practices.
 
 Keywords: Profitability, Company Characteristics, Corporate Governance, Audit Report Lag, Manufacturing Companies.

Corporate Governance Factors On Audit Report Lag

This research aims to determine the effect of committee size, committee meetings, audits, the proportion of independent commissioners, the board size, and company size on audit report lag. The research population is companies that are members of the Jakarta Islamic Index for 2017-2019. Determination of the sample using purposive sampling technique, with predetermined criteria, to obtain 45 samples. This research is quantitative research whose data sources use secondary data originating from documentation in the form of company annual reports and literature. The analysis technique in this research uses a multiple linear regression approach. The research results show that audit committees and company size do not affect audit report lag. Audit committee meetings, the proportion of independent commissioners, and the size of the board of directors partially have a positive and significant effect on audit report lag. Audit committee size, audit committee meetings, the proportion of independent commissioners, board of directors size, and company size significantly affect audit report lag. This theory research can complement existing research results; then, it can be used as a reference for auditors in managing the period in conducting audits.

Internal audit function, audit report lag and audit fee: evidence from the early stage of COVID-19 pandemic

PurposeHow does the internal audit function make external auditors work more efficiently at the early stage of the COVID-19 pandemic? This study examines the relationship between internal audit function, audit report lag and audit fee at the early stage of the COVID-19 pandemic.Design/methodology/approachThis study uses data from all public firms listed on the Indonesia Stock Exchange from 2018 to 2019 using the difference-in-difference test technique to answer the proposed hypothesis. In addition, this study also tested the issue of endogeneity using Coarsened Exact Matching (CEM) and Two-Stage Least Square (Heckman, 1979).FindingsThis study finds that, at the early stage of the COVID-19 pandemic, a good internal audit function significantly reduced audit report lag and audit fee. These findings indicate that good corporate governance implemented through an internal audit function during the COVID-19 pandemic can give assurance to prevent and mitigate the firm's risk so that external auditors can work more efficiently. Furthermore, this study also carries out an additional analysis by subsampling the high and low technological industries. Based on the robustness test, it is revealed that the results of this study are consistent.Originality/valueThis study contributes to the novelty of literature in auditing studies that highlights the audit process at the early stage of the COVID-19 pandemic

The Effect of The Education Background of The Chief Financial Officer and Profitability on Audit Report Lag

This study aims to determine the effect of the chief financial officer's educational background and profitability on audit report lag. The research object is infrastructure sector companies for the 2018-2021 period. The method in this research is quantitative research with multiple linear regression tests. The sampling technique used is the purposive sampling method. Based on the study's results, (1) CFO's educational background does not affect audit report lag. (2) Profitability has a positive effect on audit report lag. The limitations of this study are the possibility of other independent variables that can explain in more detail the audit report lag phenomenon.

Audit Committee and Audit Report Lag: A Literature Review

The paper aims to review studies dealing with audit report lag or audit delay and the Audit Committee in accounting literature over the period of 2006-2022. Research on factors related among audit report lag and audit committee has become more widespread in recent years and there was a considerable upsurge in these papers. This study combines electronic and manual searches to identify relevant studies. The search was performed using keywords such as “audit committee” and “audit report lag” or "audit delay" or "audit lag" and in total, 35 published studies were identified. The findings show that the majority of research studies the relevance of audit report lag / audit delay to the effectiveness of the Audit Committee which represented by its key characteristics (size, independence, member financial expertise, frequency of meetings, presence of women). The future shows that researchers are turning to additional characteristics of Audit Committee members to check whether they relate to audit report lag. Finally, we stand for the future of research with suggestions for new researches.
 
 Keywords: Audit Delay, Literature Review, Corporate Governance
 JEL: M42, G34

PENGARUH UKURAN PERUSAHAAN, KOMITE AUDIT DAN OPINI AUDITOR TERHADAP AUDIT REPORT LAG (Studi Empiris Perusahaan Properti, Real Estate dan Bangunan Konstruksi Yang Terdaftar Di Bursa Efek Indonesia Periode 2014-2020)

Abstract
 
 Reliable financial reports must go through an audit process, but the length of time the audit can affect the timeliness in the issuance of financial statements so that it can cause the reduction of benefits for decision making. Therefore, the importance of timeliness in the submission of financial statements so that they can be used immediately in decision making. This study aims to determine the partial and simultaneous effect of company size, audit committee and auditor's opinion on audit report lag in property, real estate and building construction companies listed on the Indonesian stock exchange during 2014 to 2020.
 This research is an associative quantitative research. The sample in this study was determined by purposive sampling method, in order to obtain 42 companies for 7 years of observation. So the number of observations is 294 samples. The data analysis method used is multiple linear regression method.
 Based on the results of this study, it shows that company size has a significant positive effect on audit report lag with a significant value of 0.205 and the audit committee has a significant positive effect on audit report lag with a significant value of 0.006. Meanwhile, the auditor's opinion has no significant negative effect on audit report lag with a significant value of 0.305. Firm size, audit committee and audit opinion simultaneously have a significant effect on audit report lag with a significant value of 0.009.
 Keywords: Audit Report Lag, Company Size, Audit Committee, Auditor's Opinion

Audit Committee and Audit Report Lag: Moderating Role of Ownership Concentration of Listed Consumer Goods Firms in Nigeria

This study examines the moderating role of ownership concentration on the effect of audit characteristics on audit report lag of listed consumer goods firms in Nigeria. The ex-post facto research design was adopted, secondary data was extracted from annual reports and accounts of listed consumer goods firms in Nigeria. The population of the study is twenty-one (21) and the sample size consist of fifteen (15) for ten years (2012-2021). Six (6) companies were flitter out from the study due the technical suspension by NXG during the period of study. Census sample techniques were adopted. PCSEs regression model was employed as technique of data analysis. The findings of the study revealed that the Audit Committee Size (ACS) and Audit Committee Meeting have a positive and significant effect on Audit Report Lag (ARL). Also, the Audit Committee Financial Expertise (ACFE) revealed a positive and insignificant effect on Audit Report Lag (ARL), while the Audit Committee Independence is established to have a negative and insignificant effect on Audit Report Lag (ARL). However, with consideration of moderating role ownership concentration, the Audit Committee Size (ACS) and Audit Committee Meeting (ACM) is found to have significant negative effect on Audit Report Lag (ARL), while the Audit Committee Financial Expertise and Audit Committee Independence are found to have a positive and insignificant effect on Audit Report Lag (ARL). The study concludes that ownership concentration moderates the effect of audit committee on Audit Report Lag. The study recommended that the management of the study firms should continue to sustain the frequency of meetings and size or numbers of the committee in their respective audit committee since the two committee have been empirically proven to have significantly reduced the timeframe of reporting their financial reports.

Implications of Audit Quality on Agency Conflicts: Evidence from Nigeri

This study examined the link between audit quality and agency costs in Nigeria corporate environment. Specifically, the study examined the way audit quality represented by audit firm size affect agency conflicts represented by asset utilization rate, and whether timeliness of the audit report alters the nexus between audit quality and agency conflicts in Nigeria. The data were collected from seventy-three (73) listed non-financial firms who consistently published their annual reports between 2010 and 2019 out of the one hundred and twelve (112) non-financial firms listed on the Nigerian Stock Exchange as of 31st December 2020. Descriptive statistics tools of mean and standard deviation as well as correlation analysis were used for preliminary analysis while fixed effect panel regression was used for the multivariate analysis. Feasible generalize least square was used to estimate the model for robustness check in addition to the use Tobin’s Q as alternative proxy for agency conflicts. The results were obtained by controlling for firm size, firm performance, and firm age. The results of the study revealed a significant negative impact of audit quality on agency costs implying that firms audit by big four have significantly lower agency costs compared to firms audited by other audit firms. Further analysis of the results shows that the positive effect of audit report lag overwhelms the negative influence of audit firm size on agency costs suggesting that using big 4-audit firm would not mitigate agency conflict if the audit report lag is higher. These findings are robust to alternate estimation technique and proxy for agency costs. This study therefore recommends that firms should not only patronize big 4-audit firm to mitigate agency conflict, they must ensure timely audit report.

Audit partner industry specialization and audit report lag: does changing in the audit reporting requirements matter?

Purpose This study aims to examine the relationship between the individual auditor’s industry specialization and the audit report lag (hereafter ARD). Further, it explores whether changing in the audit reporting requirement (i.e. the adoption of ISA701) influences the auditor’s industry specialization effect on the ARD. Design/methodology/approach A large data set of companies listed on the NASDAQ OMX Stockholm over the period 2010–2019 has been analyzed. Least squares regressions have been estimated to provide empirical evidence for the researched hypotheses. Findings The research findings indicate that the ARD is shorter for client firms audited by an industry specialist audit partner. Testing for the moderating role of changing in the auditing reporting regulation on the relation between the audit partner’s industry specialization and the ARD, the authors reveal that all client firms (except client firms with industry specialist audit partners) experienced an increase in the ARD. Overall, the baseline regression findings are found to be robust to the endogenous auditor choice and multiple measures of both the ARD and the auditor’s industry specialization. Originality/value This paper provides novel evidence on the relationship between the audit reporting lag and industry specialization from the individual auditor perspective, an issue that has hitherto been unexplored. The regression results further contribute to the upsurge debate about the consequences of changing in the audit reporting model by providing consistent support for the importance of industry specialization of the audit partner in minimizing costs derived from the former requirement.

The Effect of Company Age, Profitability, Company Size, Solvability and Audit Committee on Audit Report Lag in Manufacturing Companies in the Basic Industry and Chemical Sector Listed on the Indonesia Stock Exchange for the 2019-2021

Financial reports in a company should be submitted in a timely manner so as to avoid inaccurate information and timely delivery can also be a benchmark in predicting the quality of the company and the provisions made by investors. Therefore the researcher examines the title regarding the effect of company age, profitability, company size, solvency and audit committee on audit report lag in manufacturing companies in the basic industrial and chemical sectors listed on the IDX for the 2019-2021 period. This study uses quantitative data types in the form of financial statements and audited reports of manufacturing companies in the basic and chemical industrial sectors. The sample used was 33 companies with a total of 99 observations. using purposive sampling method and the analysis technique used is multiple linear analysis. The results of the study are that firm age has a positive and significant effect on audit report lag. Profitability, company size and audit committee have a negative and insignificant effect on audit report lag. Solvability has a negative and significant effect on audit report lag. Firm age, profitability, firm size, solvency, and audit committee have a joint effect on audit report lag. To obtain more accurate results, it is hoped that the next researcher will add the number of variables and samples in his research.

Do auditors respond when listed firms pledge shares? Evidence from China

PurposeThis paper investigates whether the audit fees of Chinese listed firms are associated with the share pledging practice of the firm’s controlling shareholders.Design/methodology/approachThis study uses the audit pricing model to estimate the association between the share pledging of listed firms and audit fees. Cross-sectional analysis is conducted on a large sample of Chinese listed firms during the period 2004 to 2019. The authors further test the moderating effects of listing on the Main Board, state ownership and abnormal audit report lag on the association between share pledging and audit fees. The results remain robust to various endogeneity tests including two-stage least squares instrumental variable analysis, entropy balancing analysis and difference-in-difference analysis.FindingsThe study finds that audit fees are positively associated with the proportion of shares pledged by the listed firm’s controlling shareholder in China. The results also provide new evidence that the positive association between audit fees and the share pledging of controlling shareholders could be mitigated if the firm is listed on the Main Board and/or it is a state-owned enterprise. In contrast, pledged firms with abnormal audit report lag are found to have higher audit fees than their pledged counterparts without the excessively long audit delay.Practical implicationsFindings of this study have important practical implications to those charged with governance, as boards need to comprehensively understand the adverse consequences of share pledging when pursuing it as the firm’s major source of financing. The study also has policy implications for stock market regulators such as the China Securities Regulatory Commission in China. Regulators could consider developing a threshold-based share pledging disclosure and pledge ratio requirements based on factors such as a firm’s listing status and ownership structure.Originality/valueThis study provides new evidence on the audit-related consequences of share pledging in a significant capital market. Findings of this study also enrich the existing audit literature by introducing the share pledging activities of controlling shareholders into the audit pricing decision-making model.