IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxiy2018i3p417-428.html
   My bibliography  Save this article

Audit Tenure and Quality to Audit Report Lag in Banking

Author

Listed:
  • L.S. Wiyantoro
  • F. Usman

Abstract

This study aims to examine the effect of audit tenure, audit quality, and Non-Audit Service on audit report lag (ARL). The authors will test how the influence of industry specialization auditor moderates the relationship between tenure audit with audit report lag and test how the influence of auditor specialization industry moderates the relationship between audit qualities with audit Report lag on banking companies in Indonesia.This study uses secondary data derived from the annual financial statements of listed companies listed on the Indonesia Stock Exchange between 2012 and 2016. This research uses purposive sampling method and uses multiple linier regression analysis.The results of this study indicate that tenure audit has a negative and significant impact on audit report lag. Quality audit has a negative impact on audit report lag. Non-audit services have a negative effect on audit report lag. The industry specialist auditor moderates the relationship between tenure audit and audit report lag. And the industry specialization auditor moderates the relationship between audit quality and audit report lag.

Suggested Citation

  • L.S. Wiyantoro & F. Usman, 2018. "Audit Tenure and Quality to Audit Report Lag in Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 417-428.
    • Handle: RePEc:ers:journl:v:xxi:y:2018:i:3:p:417-428
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/dmdocuments/2018_XXI_3_33.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Reiner Quick & Matthias Sattler & Daniela Wiemann, 2013. "Agency conflicts and the demand for non-audit services," Managerial Auditing Journal, Emerald Group Publishing, vol. 28(4), pages 323-344, April.
    2. Irma Setyawati & Sugeng Suroso & Tulus Suryanto & Dini Siti Nurjannah, 2017. "Does Financial Performance of Islamic Banking is better? Panel Data Estimation," European Research Studies Journal, European Research Studies Journal, vol. 0(2A), pages 592-606.
    3. Quick, Reiner & Sattler, M. & Wiemann, D., 2013. "Agency conflicts and the demand for non-audit services," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 63547, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    4. Tulus Suryanto & Ridwansyah Ridwansyah, 2016. "The Shariah Financial Accounting Standards: How they Prevent Fraud in Islamic Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 140-157.
    5. Mai Dao & Trung Pham, 2014. "Audit tenure, auditor specialization and audit report lag," Managerial Auditing Journal, Emerald Group Publishing, vol. 29(6), pages 490-512, May.
    6. Ali Abedalqader Al-Thuneibat & Ream Tawfiq Ibrahim Al Issa & Rana Ahmad Ata Baker, 2011. "Do audit tenure and firm size contribute to audit quality?: Empirical evidence from Jordan," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(4), pages 317-334, April.
    7. Habib, Ahsan & Bhuiyan, Md. Borhan Uddin, 2011. "Audit firm industry specialization and the audit report lag," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 20(1), pages 32-44.
    8. T. Suryanto & J.E. Thalassinos & E.I. Thalassinos, 2017. "Board Characteristics, Audit Committee and Audit Quality: The Case of Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 44-57.
    9. DeAngelo, Linda Elizabeth, 1981. "Auditor size and audit quality," Journal of Accounting and Economics, Elsevier, vol. 3(3), pages 183-199, December.
    10. Habib, Ahsan, 2011. "Audit firm industry specialization and audit outcomes: Insights from academic literature," Research in Accounting Regulation, Elsevier, vol. 23(2), pages 114-129.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aymen Abbadi & Yosra Hichri, 2024. "The Effect Of Ifrs Convergence In Mena Countries On The Audit Quality: Empirical Study In Mena Region [Impact De La Convergence Vers Les Normes Ifrs Sur La Qualité D'Audit : Etude Empirique Dans La," Post-Print hal-04696190, HAL.
    2. Khowanas Saeed Qader & Kemal Cek, 2023. "Analysis of the Impact of External Auditors’ Autonomy on Financial Accounting Information Quality Case Study Commercial Banks in Northern Iraq," Sustainability, MDPI, vol. 15(12), pages 1-21, June.
    3. Wa Ode Irma Sari & Bambang Subroto & Abdul Ghofar, 2019. "Corporate governance mechanisms and audit report lag moderated by audit complexity," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(6), pages 256-261, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. L.S. Wiyantoro & F. Usman, 2018. "Audit Tenure and Quality to Audit Report Lag in Banking," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 417-428.
    2. Eghosa Inneh & Isaiah Omotayo FAKUNLE & Romoke Rafiat BUSARI & Ibrahim Gbenga OLATUNJI, 2022. "Audit Characteristics and Financial Reporting Timeliness of Nigerian Listed Non-Financial Institution," Journal of Economics and Behavioral Studies, AMH International, vol. 14(2), pages 13-25.
    3. Isaac Selasi Awuye, 2022. "The impact of audit quality on earnings management: Evidence from France," Post-Print hal-03824396, HAL.
    4. Pacheco-Paredes, Angel Arturo & Wheatley, Clark M., 2021. "Do auditors react to real earnings management?," Advances in accounting, Elsevier, vol. 55(C).
    5. Mahdi Salehi & Grzegorz Zimon & Hayder Adnan Hashim & Ryszard Jędrzejczak & Adam Sadowski, 2022. "Accounting Quality and Audit Attributes on the Stock Price Crashes in an Emerging Market," Risks, MDPI, vol. 10(10), pages 1-24, October.
    6. Ali Ahmadi & Abdelfettah Bouri, 2019. "The Effect of Audit Quality on the Extent of Voluntary Disclosure: Companies Listed in the Tunisian Stock Exchange," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 59-73, March.
    7. Imen Fakhfakh & Anis Jarboui, 2022. "Earnings Management and Audit Report Lag: The Role of Audit Risk-Tunisian Evidence," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 21(1), pages 113-135, March.
    8. Zhigang Qin & Wen Liu & Maonan Chen, 2022. "Corporate Tax Avoidance and Firm Diversification: Evidence from Chinese Listed Firms," Asian Economic Journal, East Asian Economic Association, vol. 36(1), pages 3-21, March.
    9. George Drogalas & Michail Nerantzidis & Dimitrios Mitskinis & Ioannis Tampakoudis, 2021. "The relationship between audit fees and audit committee characteristics: evidence from the Athens Stock Exchange," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(1), pages 24-41, March.
    10. Ayad Ahmed Mohammed Al-Qublani & Hasnah Kamardin & Rohami Shafie, 2020. "Audit Committee Chair Attributes and Audit Report Lag in an Emerging Market," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 475-492, July.
    11. Shokrollah Khajavi & Akbar Zare, 2016. "The Effect of Audit Quality on Stock Crash Risk in Tehran Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 20-25.
    12. Xiong, Hao & Hou, Fei & Li, Hanwen & Wang, Huabing, 2020. "Does rice farming shape audit quality: Evidence from signing auditors level analysis," Economic Modelling, Elsevier, vol. 91(C), pages 403-420.
    13. Akihiro Yamada & Kento Fujita, 2022. "Impact of Parent Companies and Multiple Large Shareholders on Audit Fees in Stakeholder-Oriented Corporate Governance," Sustainability, MDPI, vol. 14(9), pages 1-20, May.
    14. Esmail Tavakolnia & Seyed Vali Mostafavi Makrani, 2015. "Auditor Industry Specialization and Market Valuation of Earnings and Earnings Components: Empirical Evidence from Firms Listed in Tehran Stock Exchange," Accounting and Finance Research, Sciedu Press, vol. 4(4), pages 187-187, November.
    15. repec:ers:journl:v:xx:y:2017:i:3a:p:538-553 is not listed on IDEAS
    16. Ji, Xu-dong & Lu, Wei & Qu, Wen, 2018. "Internal control risk and audit fees: Evidence from China," Journal of Contemporary Accounting and Economics, Elsevier, vol. 14(3), pages 266-287.
    17. Fakhroddin MohammadRezaei & Norman Mohd‐Saleh, 2018. "Audit report lag: the role of auditor type and increased competition in the audit market," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 58(3), pages 885-920, September.
    18. Lailah Fujianti & Indra Satria, 2020. "Firm Size, Profitability, Leverage as Determinants of Audit Report Lag: Evidence From Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 61-67, April.
    19. Imen Fakhfakh Sakka & Anis Jarboui, 2016. "Audit reports timeliness: Empirical evidence from Tunisia," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1195680-119, December.
    20. Patrick Velte & Carl-Christian Freidank, 2015. "The link between in- and external rotation of the auditor and the quality of financial accounting and external audit," European Journal of Law and Economics, Springer, vol. 40(2), pages 225-246, October.
    21. Patrick Velte, 2012. "External rotation of the auditor," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 23(1), pages 81-91, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxi:y:2018:i:3:p:417-428. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.