The Influence Of Audit Committee Effectiveness And Financial Condition On Audit Delay In Companies Listed On The Indonesian Stock Exchange
Keywords:
and organization, financial condition, audit committee diversity, audit committee characteristics, audit delayAbstract
The findings based on this study aim to analyze the influence of audit committee characteristics, audit committee diversity, and the financial condition of entities with audit delay. The research sample was created by generating 1019 data using panel data from companies listed on the Indonesia Stock Exchange between 2017 and 2021. Purposive sampling is the technique used in the sample selection process. The findings can be concluded that audit committee size, audit committee independence, audit committee meetings, audit committee accounting skills, female audit committee chairs, age of audit committee members, and corporate news are not necessarily able to have a significant effect on audit delay. However, female audit committee accounting expertise is certainly able to have a significant negative effect on audit delay. The increasing role of women with audit committee expertise will increase the quality of financial reporting, including reducing audit delay. In addition, the age of the audit committee members and financial distress can certainly give a positive significance to audit delay. Thus, the results of this study become an important record for companies and regulators regarding the importance of the role of audit committee diversity and financial conditions on audit delay
Downloads
References
Abbott, L. J., Parker, S., & Presley, T. J. (2012). Female board presence and the likelihood of financial restatement. Accounting Horizons, 26(4), 607–629. https://doi.org/10.2308/acch-50249
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
Abernathy, J. L., Barnes, M., Stefaniak, C., & Weisbarth, A. (2017). An International Perspective on Audit Report Lag: A Synthesis of the Literature and Opportunities for Future Research. International Journal of Auditing, 21(1), 100–127. https://doi.org/10.1111/ijau.12083
Afify, H.A.E. (2009). Determinants of audit report lag: Does implementing corporate governance have any impact? Empirical evidence from Egypt. Journal of Applied Accounting Research, 10(1), 56–86. https://doi.org/10.1108/09675420910963397
Agung, A., Gede, P., Arie, B., Nyoman, N., Suryandari, A., & Denpasar, UM (2021). DYNAMICS OF AUDIT COMMITTEE CHARACTERISTICS IN AUDIT. 21(2), 175–190.
Aifuwa, H.O., Musa, S., & Gold, N.O. (2020). Audit Committee Attributes and Timeliness of Corporate Financial Reporting in Nigeria. Accounting and Finance, 37(2(88)), 114–124. https://doi.org/10.33146/2307-9878-2020-2(88)-114-124
Al-Ebel, A., Baatwah, S., & Al-Musali, M. (2020). Religiosity, accounting expertise, and audit report lag: Empirical evidence from the individual level. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1823587
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
Anh, DNP, & Duc-Tho Nguyen. (2013). Audit quality and audit report lag: Case of Indonesian listed companies. Asian Review of Accounting, 21(1), 74–95.
Anugrah, EY, & Laksito, H. (2017). THE INFLUENCE OF AUDIT COMMITTEE EFFECTIVENESS ON THE TIMELINESS OF REPORTING (Empirical Study of Non-Financial Companies Listed on the IDX in 2015). Diponegoro Journal of Accounting, 6(4), 32–44. https://ejournal3.undip.ac.id/index.php/accounting/article/view/18193
Ararat, M., Aksu, M.H., & Tansel Cetin, A. (2012). The Impact of Board Diversity on Boards' Monitoring Intensity and Firm Performance: Evidence from the Istanbul Stock Exchange. SSRN Electronic Journal, 90(216). https://doi.org/10.2139/ssrn.1572283
Asri, I., & Putri, D. (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
Astuti, DSP (2007). The Role of Internal Audit and the Audit Committee in Realizing Good Corporate Governance Dewi Saptantinah Puji Astuti Faculty of Economics, Slamet Riyadi University, Surakarta. Journal of Accounting and Information Technology Systems, 8(1), 1–9.
Aucla. (2019). The Influence of Audit Committee Characteristics on Audit Report Lag with Public Accounting Firm Reputation as a Moderating Variable, 8(5), 55.
Baatwah, S. R., Salleh, Z., & Stewart, J. (2019). Audit committee chair accounting expertise and audit report timeliness: The moderating effect of chair characteristics. Asian Review of Accounting, 27(2), 273–306. https://doi.org/10.1108/ARA-12-2017-0190
Bahri, S., & Amnia, R. (2020). Effects of Company Size, Profitability, Solvability and Audit Opinion on Audit Delay. Journal of Auditing, Finance, and Forensic Accounting, 8(1), 27–35. https://doi.org/10.21107/jaffa.v8i1.7058
Blankley, A.I., Hurtt, D.N., & MacGregor, J.E. (2015). Are lengthy audit report lags a warning signal? Current Issues in Auditing, 9(2), P19–P28. https://doi.org/10.2308/ciia-51215
Chalu, H. (2021). Board characteristics, auditing characteristics and audit report lag in African Central Banks. Journal of Accounting in Emerging Economies, 11(4), 578–609. https://doi.org/10.1108/JAEE-09-2019-0173
Chandra, B. (2020). Analysis of the Influence of Audit Committee Characteristics on Audit Delays in Companies Listed on the Indonesian Stock Exchange. Journal of Applied Managerial Accounting, 4(2), 186–207. https://doi.org/10.30871/jama.v4i2.2006
Chandra, B., & Junita, N. (2021). Corporate governance and earnings management on dividend policy in Indonesia. Journal of Modernization Economics, 17(1), 15–26. https://doi.org/10.21067/jem.v17i1.5188
Cheng, L.T.W., Chan, RYK, & Leung, T.Y. (2010). Management demography and corporate performance: Evidence from China. International Business Review, 19(3), 261–275. https://doi.org/10.1016/j.ibusrev.2009.12.007
Cristiano, A., & Yopie, S. (2021). The Importance of Gender and Family Manager Education Background To CEO Founder's Moderated Company Values. Journal of Development Economics, 19(02), 107-121.
Dao, M., & Pham, T. (2014). Audit tenure, auditor specialization and audit report lag. Managerial Auditing Journal, 29(6), 490–512. https://doi.org/10.1108/MAJ-07-2013-0906
Darmayanti, N., Africa, L.A., & Mildawati, T. (2021). the Effect of Audit Opinion, Financial Distress, Audit Delay, Change of Management on Auditor Switching. International Journal of Economics and Finance Studies, 13(1), 173–193. https://doi.org/10.34109/ijefs.202112230
Durand, G. (2019). The determinants of audit report lag: a meta-analysis. Managerial Auditing Journal, 34(1), 44–75. https://doi.org/10.1108/MAJ-06-2017-1572
Falah, BZ, Mustafid, & Sudarno. (2016). SIMULTANEOUS PANEL DATA REGRESSION MODEL WITH PRICE INDEX VARIABLES RECEIVED AND PAID BY FARMERS. GAUSSIAN JOURNAL, 5, 611–621.
Faradista, CS, & Stiawan, H. (2022). The Influence of Financial Distress, Operating Profit and Company Size on Audit Delay. Simki Economic Journal, 5(1), 20–32. https://doi.org/10.29407/jse.v5i1.122
Latifa, Fauziah Luthfiany. 2015. The Influence of Profitability, Leverage, Operational Complexity, KAP Reputation, and Audit Committee on Audit Delay. Thesis. Faculty of Economics and Business, Muhammadiyah University of Surakarta. Fujianti, L. (2019). The role of legal compliance and good corporate governance on reducing audit delays on publicly listed companies in Indonesia. Research in World Economy, 10(3). https://doi.org/10.5430/RWE.V10N3P359
Ghafran, C., & Yasmin, S. (2018). Audit committee chair and financial reporting timeliness: A focus on financial, experiential and monitoring expertise. International Journal of Auditing, 22(1), 13–24. https://doi.org/10.1111/ijau.12101
Ginting, CU, & Hidayat, W. (2019). The effect of a fraudulent financial statement, firm size, profitability, and audit firm size on audit delay. International Journal of Innovation, Creativity and Change, 9(7), 323–341.
Gujarati, N, D., & Porter, D. C. (2012). Fundamentals of Econometrics (S. Four (Ed.)).
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, YD, & Yustikasari, Y. (2017). Corporate Governance and Audit Report Lags at Manufacturing Companies in the Industrial Sector of Consumption Goods. 9(29), 24–32.
Handayani, YD, & Hebrew, EY (2019). Corporate governance application, audit quality and audit report lag: The moderating role of law compliance. International Journal of Financial Research, 10(4), 164–171. https://doi.org/10.5430/ijfr.v10n4p164
Hariani, LS, & Sari, AR (2019). Analysis of the Influence of Company Size, Company Profit/Loss, KAP Size, Solvency, and Audit Opinion on Audit Delay (Empirical Study of Mining Companies Listed on the Indonesia Stock Exchange 2015-2017). Accounting Student Research Journal, 7(2), 1–6.
Harjanto, K. (2017). The Influence of Company Size, Profitability, Solvency, and Public Accounting Firm Size on Audit Delay (Empirical Study of Manufacturing Sector Companies Listed on the IDX for the 2013-2015 Period). Ultima Accounting, 9(8), 33–49.
Harjoto, MA, Laksmana, I., & Lee, R. (2015). The impact of demographic characteristics of CEOs and directors on audit fees and audit delay. Managerial Auditing Journal, 30(8–9), 963–997. https://doi.org/10.1108/MAJ-01-2015-1147
HATI, RP, & Sari, IR (2020). Factors Affecting Audit Report Lag in Banking Companies Listed on the Indonesian Stock Exchange (2013-2017). Measurement : Accounting Journal, 14(1), 41. https://doi.org/10.33373/mja.v14i1.2509
Hendi, H., & Sitorus, R. (2023). An Empirical Research on Audit Report Timeliness. Journal of Accounting and Finance, 25(1), 39-53.
Hurlock, Elizabeth B. 1999, Developmental Psychology: An Approach Across the Life Span, Erlangga Publishers, Jakarta.
Ika, SR, & Mohd Ghazali, NA (2012). Audit committee effectiveness and timeliness of reporting: Indonesian evidence. Managerial Auditing Journal, 27(4), 403–424. https://doi.org/10.1108/02686901211217996
Janartha, IWP, & Herkulanus, BS (2016). The Influence of Company Size, Existence of an Audit Committee and Leverage on Audit Delay. Udayana University Accounting E-Journal, 16(3), 2374–2407.
Karina, R. (2021). Corporate governance and earnings management: Does gender matter? Indonesian Journal of Accounting and Auditing, 125-135.
Kayleen, K., & Hariindahyani, S. (2020). The Impact of Audit Committee's Effectiveness, Gender, and Tenure on Audit Report Lag: Indonesian Evidence. https://doi.org/10.4108/eai.13-2-2019.2286077
Khoufi, N., & Khoufi, W. (2018). An empirical examination of the determinants of audit report delay in France. Managerial Auditing Journal, 33(8–9), 700–714. https://doi.org/10.1108/MAJ-02-2017-1518
Knechel, W.R., & Payne, J.L. (2001). Additional Evidence on Audit Report Lag. 20(1).
Komal, B., Bilal, Ezeani, E., Shahzad, A., Usman, M., & Sun, J. (2021). Age diversity of audit committee financial experts, ownership structure and earnings management: Evidence from China. International Journal of Finance and Economics, January, 1–19. https://doi.org/10.1002/ijfe.2556
Kusumastuti, S., & Sastra, P. (2007). The Influence of Board Diversity on Company Value from a Corporate Governance Perspective. Journal of Accounting and Finance, 9(2), 88–98. https://doi.org/10.9744/jak.9.2.pp.88-98
Lai, TTT, Tran, MD, Hoang, VT, & Nguyen, THL (2020). Determinants influencing audit delay: The case of Vietnam. Accounting, 6(5), 851–858. https://doi.org/10.5267/j.ac.2020.5.009
Sallah. (2017). Audit Committee Financial Expertise and Audit Report Lag : 150, 137–150.
Lee, H.-Y., Mande, V., & Son, M. (2009). Do Lengthy Auditor Tenure and the Provision of Non-Audit Services by the External Auditor Reduce Audit Report Lags? International Journal of Auditing, 13(2), 87–104. https://doi.org/10.1111/j.1099-1123.2008.00406.x
McLaughlin, C., Armstrong, S., Moustafa, M. W., & Elamer, A. A. (2021). Audit committee diversity and corporate scandals: evidence from the UK. International Journal of Accounting and Information Management, 29(5), 734–763. https://doi.org/10.1108/IJAIM-01-2021-0024
Muliantari, NPIA, & Latrini, MY (2017). Company Size as a Moderating Effect of Profitability and Financial Distress on Audit Delay in Manufacturing Companies. Accounting E-Journal, 20(3), 1875–1903.
Mulyana, D. (2014). Research Methods Research Methods. Qualitative Research Methods, 43.
Nehme, R., Assaker, G., & Khalife, R. (2015). Dynamics of audit lag − Board of directors and audit committees' effect. Corporate Ownership and Control, 12(3CONT3), 281–294. https://doi.org/10.22495/cocv12i3c3p1
Oradi, J., & Izadi, J. (2020). Audit committee gender diversity and financial reporting: evidence from statements. Managerial Auditing Journal, 35(1), 67–92. https://doi.org/10.1108/MAJ-10-2018-2048
Othman, R., Ishak, IF, Arif, SMM, & Aris, NA (2014). Influence of Audit Committee Characteristics on Voluntary Ethics Disclosure. Procedia - Social and Behavioral Sciences, 145, 330–342. https://doi.org/10.1016/j.sbspro.2014.06.042
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
The Influence of Company Size, Cap Size and Internal Auditor on Audit Delay. (2017). Journal of Accounting, 5(2), 159–166. https://doi.org/10.24964/ja.v5i2.286
Pinzon (2013). The Influence of Company Size, Company Profitability, Auditor Size, and Audit Opinion on Audit Delay.
Praptika, P., & Rasmini, N. (2016). The Influence of Audit Tenure, Change of Auditor and Financial Distress on Audit Delay in Consumer Goods Companies. Accounting E-Journal, 15(3), 2052–2081.
Prasetyo, I., Aliyyah, N., Rusdiyanto, R., Nartasari, DR, Nugroho, S., Rahmawati, Y., Groda, SP, Setiawan, S., Triangga, B., Mailansa, E., Prayogi, GD, Etruly, N., Jazuli, M., Wahyuningsih, ND, Kusumawati, ND, Kurniawan, S., Ratri, IN, Atmojo, W., Sugiarno, Y., … Rochman, AS ur. (2021). What Effects Audit Delay in Indonesia? Academy of Entrepreneurship Journal, 27(2), 1–15.
Pratama, JS, & Rohman, A. (2015). The Influence of Audit Committee Effectiveness on Financial Reporting Period. Diponegoro Journal of Accounting, 4(2), 487–497.
Pfeffer, J., G. Salancik. 1978. The External Control of Organizations: A Resource-Dependence Perspective. Harper & Row, New YorkPuri Rahayu, LR (2017). "Determinants of Audit Delay in Indonesian Companies: Empirical Evidence." Inventory: Journal of Accounting, 1(1), 1. https://doi.org/10.25273/inventory.v1i1.5010
Rahmawati, V. (2019). The Influence of Size, Leverage, Profitability, Capital Intensity Ratio and Independent Commissioners on the Effective Tax Rate (Etr). Diponegoro Journal of Accounting, 5(2), 81–105.
Richardson, R. J., Mizruchi, M. S., & Schwartz, M. (1989). Intercorporate Relations: The Structural Analysis of Business. In Administrative Science Quarterly (Vol. 34, Issue 1). https://doi.org/10.2307/2392995
Rofifah, D. (2020). The Influence of the Effectiveness of the Audit Committee on the Timeliness of Submission of Financial Reports. Paper Knowledge . Toward a Media History of Documents, 12–26.
Rustiarini, NW (2012). Audit Committee and Audit Quality: Study Based on Characteristics, Competence and Activities of the Audit Committee. Mahasaraswati University Denpasar, 1(1), 1–8.
Santi Yopie, & Robin. (2023). The Influence of Corporate Governance System and Corporate Social Responsibility on Corporate Profit Management Kompas 100. Migration Letters, 20(7), 1327–1346. https://doi.org/10.59670/ml.v20i7.5153
Sekaran, U., & Bougie, R. (2016). Research methods for business : a skill-building approach. John Wiley & Sons. https://doi.org/10.1007/978-94-007-0753-5_102084
Sharma, V.D., & Iselin, E.R. (2012). The association between audit committee multiple-directorships, tenure, and financial misstatements. Auditing, 31(3), 149–175. https://doi.org/10.2308/ajpt-10290
Shinta Widhiasari, NM (2016). The Influence of Company Age, Company Size, Auditor Reputation, and Auditor Changes on Audit Report Lag. Accounting E-Journal, 15(1), 200–228.
Siahaan, I., Surya, RAS, & Zarefar, A. (2019). The Influence of Audit Opinion, Change of Auditor, Financial Difficulties and Audit Committee Effectiveness on Audit Delay. Caltex Riau Polytechnic Journal, 12(2), 1135–1144. https://jurnal.pcr.ac.id/index.php/jakb/
Sugiyono. (2006). Statistics for Research.
Ratnasari, Sisilia Novi and Yennisa. 2017. The Influence of Company Size, KAP Size, and Internal Auditor on Audit Delay. Accounting Journal, Vol. 5 No. 2, December 2017. Smith, N. (2018). Gender quotas on boards of directors. IZA World of Labor, December, 1–10. https://doi.org/10.15185/izawol.7.v2
Space, W. L. (2014). International Standard Classification of Occupations (ISCO). Encyclopedia of Quality of Life and Well-Being Research, 3336–3336. https://doi.org/10.1007/978-94-007-0753-5_102084
Sultana, N., Singh, H., & Rahman, A. (2019). Experience of Audit Committee Members and Audit Quality. European Accounting Review, 28(5), 947–975. https://doi.org/10.1080/09638180.2019.1569543
Sultana, N., Singh, H., & Van der Zahn, J. L. W. M. (2015). Audit Committee Characteristics and Audit Report Lag. International Journal of Auditing, 19(2), 72–87. https://doi.org/10.1111/ijau.12033
Sumajow, K. C., Kalangi, L., & Weku, P. (2022). The Effect of Financial Distress, Audit Committee, Auditor Switching, and Industry Types on Audit Delay in the Covid-19 Pandemic of Companies Listed on the Indonesian Stock Exchange's KOMPAS100 Index. International Journal of Accounting & Finance in Asia Pacific (IJAFAP), 5(1), 1–11. http://ejournal.aibpm.org/index.php/IJAFAP/index
Syofyan, E., Septiari, D., Dwita, S., & Rahmi, M. (2021). The characteristics of the audit committee affecting the timeliness of the audit report in Indonesia. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1935183
Tanujaya, K., & Reny. (2022). The influence of company characteristics and audit committee on audit report lag. Fair Value: Scientific Journal of Accounting and Finance, 4(3), 1375–1393.
Taufik, M., & Sugianto, CV (2021). Do Accounting, Markets, and Macroeconomic Factors Affect Financial Distress? Evidence in Indonesia. TIJAB (The International Journal of Applied Business), 5(2), 166. https://doi.org/10.20473/tijab.v5.i2.2021.31061
Turley, S., & Zaman, M. (2007). Audit committee effectiveness: Informal processes and behavioral effects. Accounting, Auditing and Accountability Journal, 20(5), 765–788. https://doi.org/10.1108/09513570710779036
Wandrianto, R., Anugerah, R., Nurmayanti, P., Accounting, J., Ekonomi, F., & Riau, U. (2021). Characteristics of the Audit Committee and Audit Report Lag: Empirical Study in Manufacturing Companies in Indonesia. Journal of Accounting and Finance Research, 9(2), 325–336. https://doi.org/10.17509/jrak.v9i2.29607
Wariyanti, & Suryono, B. (2017). The Influence of Profitability, Leverage and Audit Opinion on Audit Delay. Journal of Accounting Science and Research, 6(9), 1–16. http://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/download/1629/1644/
Winarno, W. (2015). Econometric and Statistical Analysis with Eviews Edition 4. UPP STIM YKPN.
Yanti, NWSE, Adnyana, INK, & Sudiartana, IM (2020). The Influence of Company Size, Company Age, Profitability, Leverage and Audit Opinion on Audit Delay in Manufacturing Companies Listed on the Indonesian Stock Exchange 2015-2018. Charisma Journal, 2(3), 212–226.
Zaitul, & Ilona, D. (2019). Gender in audit committee and financial reporting timeliness: The case of unique continental European model. International Journal of Recent Technology and Engineering, 8(2 Special Issue 9), 864–871. https://doi.org/10.35940/ijrte.B1178.0982S919
LOGIN
