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Corporate governance mechanisms and audit report lag moderated by audit complexity

Author

Listed:
  • Wa Ode Irma Sari

    (Accounting Department, Brawijaya University, Indonesia)

  • Bambang Subroto

    (Accounting Department, Brawijaya University, Indonesia)

  • Abdul Ghofar

    (Accounting Department, Brawijaya University, Indonesia)

Abstract

This study aims to verify the correlation between corporate governance mechanisms, reflected independent commissioners, audit committee and audit tenure to audit report lag, and the audit complexity has able to moderate the relationship between corporate governance mechanisms to audit report lag. This study uses a population of manufacturing companies that publish their financial statements on the Indonesian Stock Exchange in 2015-2017. The samples are selected with a purposive sampling method. There is 100 manufacturing company selected as the sample for the period of 2015-2017. This study was tested by using the Moderate Regression Analysis test. The results of this study indicate that the audit committee and audit tenure have a negative effect on audit report lag, but the independent commissioner has an insignificant effect on audit report lag. Audit complexity is proven to increase audit report lag as an increase audit committee. This research provides the capital market authority (OJK) to issue policies and strict sanctions, thus encouraging companies to publish audited financial statements more time. Key Words:Audit Report Lag, Corporate Governance, Audit Complexity

Suggested Citation

  • 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.
    • Handle: RePEc:rbs:ijbrss:v:8:y:2019:i:6:p:256-261
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    References listed on IDEAS

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    4. 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.
    5. 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.
    6. Patricia Diana, 2018. "Internal and External Determinants of Audit Delay: Evidence from Indonesian Manufacturing Companies," GATR Journals afr153, Global Academy of Training and Research (GATR) Enterprise.
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