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Audit Report Lag: Specialized Auditor and Corporate Governance

Author

Listed:
  • Arya Pradipta

    (Trisakti School of Management, Jl. Kyai Tapa No. 20, Jakarta, Indonesia Author-2-Name: Arvivid Gracenia Zalukhu Author-2-Workplace-Name: Trisakti School of Management, Jl. Kyai Tapa No. 20, Jakarta, Indonesia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

Objective - This paper aims to obtain empirical evidence about the influence of specialized auditors, audit tenure, audit committee, board independence, ownership concentration, and auditor quality on audit report lag in Indonesian manufacturing firms. Methodology/Technique - The population is all manufacturing companies listed on the Indonesia Stock Exchange between 2010 and 2016. Multiple linear regressions was used as the data analysis method. Finding - The results of this research show that specialized auditors, board independence, ownership concentration and auditor quality all have an influence on audit report lag. Meanwhile, audit tenure and audit committee do not have an influence on audit report lag. Novelty - Specialized auditors will provide better performance than non-specialized auditors. Specialized auditors will apply more appropriate planning and monitoring on the audit procedure. Specialized auditors need longer time to audit financial statements, which effects audit report lag. The presence of an independent board requires higher quality financial statements. Thus, the auditor needs to put more effort into the verification process of financial statements. The largest shareholders tend to be committed and responsible to the company's reputation. Managers will demand the audit report lag in a timely manner, in order to maintain the trust and satisfaction of the company's largest shareholders.

Suggested Citation

  • Arya Pradipta, 2020. "Audit Report Lag: Specialized Auditor and Corporate Governance," GATR Journals gjbssr555, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:gjbssr555
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    References listed on IDEAS

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    1. Vivek Mande & Myungsoo Son, 2011. "Do audit delays affect client retention?," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(1), pages 32-50, January.
    2. 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.
    3. Rusmin Rusmin & John Evans, 2017. "Audit quality and audit report lag: case of Indonesian listed companies," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 25(2), pages 191-210, May.
    4. Mohamad Naimi Mohamad-Nor & naimi@uum.edu.my & Rohami Shafie & Wan Nordin Wan-Hussin, 2010. "Corporate Governance and Audit Report Lag in Malaysia," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 6(2), pages 57-84.
    5. 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.
    6. H.A.E. Afify, 2009. "Determinants of audit report lag," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 10(1), pages 56-86, May.
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    Cited by:

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    2. Rizky Eriandani & Kashan Pirzada & Melly Karina Kurniawan, 2020. "The role of auditor characteristics: earnings management and audit committee effectiveness," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 3242-3252, June.
    3. Beylem Çelik & Gökhan Özer & Abdullah Kürşat Merter, 2023. "The Effect of Ownership Structure on Financial Reporting Timeliness: An Implementation on Borsa Istanbul," SAGE Open, , vol. 13(4), pages 21582440231, November.

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    More about this item

    Keywords

    Audit Report Lag; Specialized Auditor; Board Independence; Ownership Concentration; Auditor Quality.;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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