THE ROLE OF GOVERNANCE SUPERVISION ON DELAYS IN AUDIT REPORTS OF COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE
Keywords:
Audit Report Lag, Corporate GovernanceAbstract
The research aims to investigate the effect of corporate governance and audit report lag. The independent variables of this research are audit committee size, audit committee independence, audit committee expertise, audit committee diligence, board size, board independence, and board diligence. With control variables in the form of company size, profitability, gender, and the type of auditor. As well as the dependent variable to be examined is audit report lag.
The study used samples from non-financial companies that have annual reports and complete financial reports from 2017 to 2021, namely 2,020 data from 404 companies listed on the Indonesia Stock Exchange (IDX). The collection of samples in this study used a purposive sampling method. The data studied is the company's annual financial statements that have been audited. Data were analyzed using logistic regression analysis, where some of the variables is a dummy variable.
The results of the study prove that the variables of audit committee independence, board size, board independence, board diligence, profitability, and type of auditor have a significant positive effect on audit report lay, while the variables of audit committee size, audit committee diligence, and gender have a negative effect but not significant to audit report lag. Meanwhile, other variables such as expertise of the audit committee and firm size have a non-significant positive effect on audit report lag.
Downloads
References
Abdillah, MR, Mardijuwono, AW, & Habiburrochman, H. (2019). The effect of company characteristics and auditor characteristics on audit report lag. Asian Journal of Accounting Research, 4(1), 129–144. https://doi.org/10.1108/AJAR-05-2019-0042
Adhyasa, R., & Dewayanto, T. (2020). Corporate governance mechanisms and audit report lag. Diponegoro Journal of Accounting, 9(4), 1–15. http://ejournal-s1.undip.ac.id/index.php/accounting
Ahmed, MI, & Che-Ahmad, A. (2016). Effects of board size, board committee characteristics and audit quality on audit report lags. The European Proceedings of Social & Behavioral Sciences, 810–818. https://doi.org/10.15405/epsbs.2016.08.114
Al Daoud, KA, Ku Ismail, KNI, & Lode, NA (2015). The impact of internal corporate governance on the timeliness of financial reports of Jordanian firms: Evidence using audit and management report lags. Mediterranean Journal of Social Sciences, 6(1), 430–442. https://doi.org/10.5901/mjss.2015.v6n1p430
Aladwey, L.M.A., & Elgharbawy, A.H. (2021). The effect of audit committee's characteristics on the audit report timeliness: Empirical evidence from the UK. Science and Technology, 58(5), 231–272. https://doi.org/10.21608/ACJ.2021.207466
Alfraih, MM (2016). Corporate governance mechanisms and audit delay in a joint audit regulation. Journal of Financial Regulation and Compliance, 24(3), 292–316. https://doi.org/10.1108/JFRC-09-2015-0054
Alshrife, FM, Subekti, I., & Widya, Y. (2016). The Effect of Audit Committee Characteristics on timeliness of financial reporting by using auditor quality as the moderating variable (An empirical study from Indonesian manufacturing companies). The International Journal of Accounting and Business Society, 24(1), 67–80.
Anugrah, EY, & Laksito, H. (2017). The influence of the effectiveness of the audit committee on the timeliness of reporting (empirical study on non-financial companies listed on the IDX in 2015). Diponegoro Journal of Accounting, 6(4), 1–13. http://ejournal-s1.undip.ac.id/index.php/accounting
Apriyana, N., & Rahmawati, D. (2017). The influence of profitability, solvency, company size and KAP size on audit delay in property and real estate companies listed on the Indonesia Stock Exchange for the 2013-2015 period. Nominal Barometer of Accounting and Management Research, 6(2), 108–124. https://doi.org/10.21831/NOMINAL.V6I2.16653
Ayemere, I. L., & Elijah, A. (2015). Corporate attributes and audit delay in emerging markets : Empirical evidence from Nigeria. International Journal of Business and Social Research, 5(3), 1–10.
Baatwah, S.R., Salleh, Z., & Ahmad, N. (2015). Corporate governance mechanisms and audit report timeliness: Empirical evidence from Oman. International Journal of Accounting, Auditing and Performance Evaluation, 11(3–4), 312–337. https://doi.org/10.1504/IJAAPE.2015.071580
Bagaskara, A., & Triyanto, DN (2021). The effect of audit committee independence, audit committee competence and audit committee gender on audit delay (Empirical study on food and beverage companies listed on the Indonesia Stock Exchange 2016-2019). E-Proceedings of Management, 8(5), 5021–5030.
Chalu, H. (2021). Board characteristics, auditing characteristics and audit report lag in African Central Banks. Journal of Accounting in Emerging Economies, 11(2). https://doi.org/10.1108/JAEE-09-2019-0173
Chan, K. H., Luo, V. W., & Mo, P. L. L. (2016). Determinants and implications of long audit reporting lags: Evidence from China. Accounting and Business Research, 46(2), 145–166.
Chandra, B., & Kellin. (2020). Analysis of the influence of audit committee characteristics on audit delays in companies listed on the Indonesia Stock Exchange. Journal of Applied Managerial Accounting, 4(2), 186–207.
Clarisa, S., & Pangerapan, S. (2019). The effect of company size, solvability, profitability, and KAP size on audit delay in mining sector companies listed on the Indonesia Stock Exchange. EMBA Journal, 7(3), 3069–3078.
Fakhfakh Sakka, I., & Jarboui, A. (2016). Audit reports timeliness: Empirical evidence from Tunisia. Cogent Business and Management, 3(1). https://doi.org/10.1080/23311975.2016.1195680
Farooq, M.U., Kazim, I., Usman, M., & Latif, I. (2018). Corporate governance and audit fees: Evidence from a developing country. Pakistan Journal of Commerce and Social Sciences, 12(1), 94–110.
Firmansyah, R., & Amanah, L. (2020). The influence of profitability, good corporate governance, leverage, and firm size on audit report lag. Journal of Accounting Science and Research, 9(3), 1–20.
Firnanti, F., & Karmudiandri, A. (2020). Corporate governance and financial ratios effect on audit report lag. Accounting and Finance Review, 5(1), 15–21. https://doi.org/10.35609/afr.2020.5.1(2)
Franedya, R. (2018). Not submitting the 2017 financial report audit, BEI suspended 10 shares. CNBC Indonesia. https://www.cnbcindonesia.com/market/20180702124047-17-21406/tak-besar-lapkeu-2017-auditan-bei-suspensi-10-saham
Ghani, EK, & Azmi, AFC (2022). The role of board structure and audit committee structure on financial reporting timeliness: Evidence from public listed companies in Malaysia. Journal of Asian Finance, 9(5), 443–0453. https://doi.org/10.13106/jafeb.2022.vol9.no5.0443
Gunarsa, IGAC, & Putri, IAD (2017). The influence of the audit committee, audit committee independence, and profitability on audit report lag in manufacturing companies. Accounting E-Journal, 20(2), 1672–1703. https://doi.org/10.24843/EJA.2017.V20.I02.P29
Habib, A., Bhuiyan, MBU, Huang, HJ, & Miah, MS (2019). Determinants of audit report lag: A meta-analysis. International Journal of Auditing, 23(1), 20–44. https://doi.org/10.1111/ijau.12136
Handayani, PD (2016). Analysis of the Influence of the Board of Commissioners and Audit Committee of BUMN Companies on Audit Report Lag. http://repository.ibs.ac.id/id/eprint/560
Handayani, YD, & Yustikasari, Y. (2017). Corporate governance and audit report lags at manufacturing companies in the industrial sector of consumption goods. European Journal of Business and Management, 9(29), 24–32. www.iiste.org
Handoko, BL, & Marshella, M. (2020). Analysis of factors affecting audit report lag in the consumer goods industrial manufacturing company. International Journal of Innovation, Creativity and Change, 12(6), 362–375.
Hassan, YM (2016). Determinants of audit report lag: evidence from Palestine. Journal of Accounting in Emerging Economies, 6(1), 13–32.https://doi.org/10.1108/JAEE-05-2013-0024
Hendi, H., & Sitorus, R. (2023). An Empirical Research on Audit Report Timeliness. Journal of Accounting and Finance, 25(1), 39-53.
Hidayatullah, SA (2015). The influence of audit committee characteristics to audit lag on financial reporting.
idx.co.id. (2019). Announcement of submission of audited financial reports ending on 31 December 2018. Indonesia Stock Exchange.
idx.co.id. (2020). Announcement of submission of audited financial reports ending 31 December 2019. Indonesia Stock Exchange.
idx.co.id. (2021). Announcement of submission of audited financial reports ending 31 December 2020. Indonesia Stock Exchange.
Indriantoro, N., & Supomo, B. (2016). Business Research Methodology. BPFE-Yogjakarta.
Intan, K. (2022). Having not submitted their 2021 financial reports, 68 issuers were subject to fines. Kontan.Co.Id. https://investasi.kontan.co.id/news/belum-besarkan-report-keuangan-tahun-2021-68-emiten-kena-denda
Ishaq, MA (2016). Effects of Board Size, Board Committees Characteristics and Audit Quality on Audit Report Lags. August 2016, 810–818. https://doi.org/10.15405/epsbs.2016.08.114
Isnania, SA, Sukarmanto, E., & Maemunah, M. (2018). The influence of the audit committee, independent board of commissioners and KAP reputation on audit report lag. Accounting Proceedings, 4(1), 40–45.
Juwita, R., Sutrisno T, S., & Hariadi, B. (2020). Influence of audit committee and internal audit on audit report lag. International Journal of Research in Business and Social Science (2147- 4478), 9(1), 137–142. https://doi.org/10.20525/ijrbs.v9i1.593
Kaaroud, M.A., Mohd Ariffin, N., & Ahmad, M. (2020). The extent of audit report lag and governance mechanisms: Evidence from Islamic banking institutions in Malaysia. Journal of Islamic Accounting and Business Research, 11(1), 70–89. https://doi.org/10.1108/JIABR-05-2017-0069
Cashmere. (2017). Customer service excellence: Theory and practice (1st Ed.). RajaGrafindo Persada.
Khlif, H., & Samaha, K. (2016). Audit committee activity and internal control quality in Egypt. Managerial Auditing Journal, 31(3), 269–289. https://doi.org/10.1108/MAJ-08-2014-1084/FULL/PDF
Khoufi, N., & Khoufi, W. (2018). An empirical examination of the determinants of audit report delay in France. Emerald Group Publishing Limited, 33(8/9), 700–714. https://doi.org/10.1108/MAJ-02-2017-1518
Kuslihaniati, DF, & Hermanto, SB (2016). The influence of corporate governance practices and company characteristics on audit report lag. Journal of Accounting Science and Research (JIRA), 5(2). http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/view/1568
Kusumah, RWR, & Manurung, DTH (2017). Is good corporate governance important for audit report lag? Journal of Multiparadigm Accounting, 8(1), 137–148. https://doi.org/10.18202/jamal.2017.04.7047
Lajmi, A., & Yab, M. (2021). The impact of internal corporate governance mechanisms on audit report lag: evidence from Tunisian listed companies. EuroMed Journal of Business. https://doi.org/10.1108/EMJB-05-2021-0070
Lekok, W., & Rusly, V. (2020). Audit report lag in manufacturing companies on the Indonesian Stock Exchange. Business Media, 12(2), 139–152. https://doi.org/10.34208/mb.v12i2.919
Lirungan, D., & Hariindahyani, S. (2018). The effect of corporate governance on audit report timeliness in Indonesia. Journal of Business Accounting, 16(1), 80–94.
Maranjory, M., & Tajani, M. K. (2022). Audit committee characteristics and audit report lag: evidence from the Iran. Big Data and Computing Visions, 2(1), 49–60. https://doi.org/10.22105/bdcv.2022.331039.1047
Nehme, R., Assaker, G., & Khalife, R. (2015). Dynamics of audit lag − Board of directors and audit committees' effect. Corporate Ownership and Control, 12(3), 281–294. https://doi.org/10.22495/cocv12i3c3p1
Nouraldeen, R.M., Mandour, M., & Hegazy, W. (2021). Audit report lag: Do company characteristics and corporate governance factors matter? Empirical evidence from Lebanese commercial banks. BAU Journal - Society, Culture and Human Behavior, 2(2). https://digitalcommons.bau.edu.lb/schbjournal/vol2/iss2/13
Noviarty, H., Puspitasari, A., & Heniwati, E. (2021). Do internal auditors and audit committees have an impact on audit report lag for the mining industry? Journal of Accounting and Finance, 23(1), 15–23. https://doi.org/10.9744/jak.23.1.15-23
Ogoun, S.P., Edoumiekumo, A.R., & Nkak, P.E. (2020). Audit committee attributes and audit report lag of quoted industrial companies in Nigeria. IOSR Journal of Business and Management, 22(5), 1–9. https://doi.org/10.9790/487X-2205050109
FSA. (2014). Financial Services Authority Regulations regarding Directors and Board of Commissioners of Issuers or Public Companies. Financial Services Authority. https://peraturan.bpk.go.id/Home/Details/129842/peraturan-ojk-no-33pojk042014-tahun-2014
FSA. (2015). Financial Services Authority Regulation concerning the Establishment and Implementation Guidelines for the Audit Committee. Financial Services Authority. https://peraturan.bpk.go.id/Home/Details/128761/peraturan-ojk-no-55-pojk042015-tahun-2015
Oussii, A. A., & Boulila Taktak, N. (2018). Audit committee effectiveness and financial reporting timeliness: The case of Tunisian listed companies. African Journal of Economic and Management Studies, 9(1), 34–55. https://doi.org/10.1108/AJEMS-11-2016-0163
Ozoanigbo, C. V, Orjinta, IO, & Ofor, T.N. (2016). Audit committee effectiveness and timeliness of the financial reporting in Nigeria. Approaches in International Journal of Research Development, 10(1).
Pemayun, CIMP, & Astika, IBP (2021). Characteristics of the audit committee in audit report lag. Accounting E-Journal, 31(1), 152–167. https://doi.org/10.24843/eja.2021.v31.i01.p12
Pradipta, A., & Zalukhu, AG (2020). Audit report lag: Specialized auditors and corporate governance. GATR Global Journal of Business Social Sciences Review, 8(1), 41–48. https://doi.org/10.35609/gjbssr.2020.8.1(5)
Primasari, NS, & Ghofirin, M. (2021). Audit report lag, audit tenure and company size on stock performance volatility. Journal of Research Innovation, 1(8), 1619–1626.
Priya, L. (2017). THE INFLUENCE OF AUDIT COMMITTEE EFFECTIVENESS ON AUDIT DELAY Lalu Priya Ajinugraha Wardi Nurul Fachriyah, SE., MSA., Ak. Brawijaya University. Brawijaya University FEB Student Scientific Journal, 7(2), 1–16.
Rahayu, SL, & Laksito, H. (2020). Factors that influence audit report lag. Diponegoro Journal of Accounting, 9(4), 1–12. http://ejournal-s1.undip.ac.id/index.php/accounting
Rahmansyah, AI, Wardayati, SM, & Miqdad, M. (2020). Audit committee, board, and audit report lag. Wiga : Journal of Economic Research, 11(1), 19–30. https://doi.org/10.30741/wiga.v11i1.577
Raweh, NAM, Kamardin, H., & Malik @ Malek, M. (2019). Audit committee characteristics and audit report lag: Evidence from Oman. International Journal of Accounting and Financial Reporting, 9(1), 152. https://doi.org/10.5296/IJAFR.V9I1.14170
Rusmanto, T., & Herlina, M. (2020). The relationship between corporate governance and audit report lag: Evidence from Indonesia. Palarch's Journal Of Archeology Of Egypt/Egyptology, 17(7), 3003–3013.
Salleh, Z., Baatwah, S.R., & Ahmad, N. (2017). Audit committee financial expertise and audit report lag: Malaysia further insight. Asian Journal of Accounting and Governance, 8, 137–150. https://doi.org/10.17576/AJAG-2017-08-12
Sari, WOI, Subroto, B., & Ghofar, A. (2019). Corporate governance mechanisms and audit report lag moderated by audit complexity. International Journal of Research in Business and Social Science, 8(6), 256–261. https://doi.org/10.20525/ijrbs.v8i6.536
Serly, S. (2021). Corporate governance and audit report lag in financial companies listed on the Indonesia Stock Exchange. Owner: Accounting Research & Journal, 5(2), 631–643. https://doi.org/10.33395/owner.v5i2.498
Setiawan, G., & Nahumury, J. (2014). The effect of board of commissioners, audit committee, and stock ownership concentration on audit report lag of banking companies in Indonesia Stock Exchange. The Indonesian Accounting Review, 4(1), 15–28. https://doi.org/10.14414/tiar.v4i01.280
Sudradjat, S., & Umar Mai, M. (2022). Corporate governance and audit report lag in non-financial companies on the Indonesia Stock Exchange. Journal of Accounting Research, Organization, and Economics, 5(2), 124–135. www/http/jurnal.unsyiah.ac.id/JAROE
Sultana, N., Singh, H., & Zahn, J. L. W. M. Van der. (2015). Audit committee characteristics and audit report lag. International Journal of Auditing, 19(2), 72–87. https://doi.org/10.1111/IJAU.12033
Sunarsih, NM, Munidewi, IAB, & Masdiari, NKM (2021). The influence of company size, profitability, solvency, audit quality, audit opinion, audit committee on audit report lag. KRISNA: Accounting Research Collection, 13(1), 1–13. https://doi.org/10.22225/kr.13.1.2021.1-13
Susandya, AAPGBA, & Suryandari, NNA (2021). Dynamics of audit committee characteristics during audit report lag. Accounting, Auditing & Information Research Media, 21(2), 175–190. https://doi.org/10.25105/mraai.v21i2.9048
Tanujaya, K., & Reny, R. (2022). The influence of company characteristics and audit committee on audit report lag. Scientific Journal of Accounting and Finance, 4(3), 1375–1393.
Waluyo, B., Prasetyo, H., & Subakdi. (2019). Independence of Independent Directors in Public Companies.
Wardi, LPA, & Fachriyah, N. (2019). The influence of audit committee effectiveness on audit delay. Brawijaya University FEB Student Scientific Journal, 7(2), 1–16.
Warrad, L. H. (2018). The extent to which the corporate governance characteristics has affected the audit report lag in Jordanian banks. International Journal of Business and Management, 13(12), 81–92. https://doi.org/10.5539/ijbm.v13n12p81
Wulandari, PR, & Apriada, K. (2022). Determinants of audit report lag in manufacturing companies. Economina Journal, 1(4), 784–799. www.idx.co.id
Yusnia, V., & Kanti, A. (2021). Factors that influence the audit report lag among non-financial companies in Indonesia stock exchange. Advances in Economics, Business and Management Research, 174, 135–143. https://doi.org/10.2991/aebmr.k.210507.021
Zulfikar, R. (2018). Estimation model and selection method of panel data regression: An overview of common effect, fixed effect, and random effect models.https://doi.org/10.31227/osf.io/9qe2b
LOGIN
