scholarly journals The effect of company characteristics and auditor characteristics to audit report lag

2019 ◽  
Vol 4 (1) ◽  
pp. 129-144 ◽  
Author(s):  
Muhammad Rifqi Abdillah ◽  
Agus Widodo Mardijuwono ◽  
Habiburrochman Habiburrochman
Keyword(s):  
Audit Committee ◽  
Linear Regression Method ◽  
Manufacturing Companies ◽  
Audit Report ◽  
Audit Process ◽  
Industry Specialization ◽  
Content Type ◽  
Financial Condition ◽  
Auditor Characteristics ◽  
Auditor Reputation

Purpose The purpose of this paper is to examine and analyze the factors that affect an auditor’s efficiency in completing the audit process proxied by audit report lag. The factors used in this study are selected by looking at the characteristics of the company and the characteristics of an auditor. Design/methodology/approach Company characteristics were proxied by the audit committee effectiveness, financial condition, accounting complexity and profitability, whereas auditor characteristics were proxied with auditor reputation, audit tenure and auditors industry specialization. Populations of this study were all manufacturing companies listed in Indonesian Stock Exchange in 2014–2016. Based on the purposive sampling method, the number of samples obtained from 231 companies was 77. Multiple linear regression method was used to analyze this study. Hypothesis testing was done by statistical t-test (partial). Findings The results showed that partially variables of the audit committee effectiveness and profitability had a significant negative effect on audit report lag while the variable financial condition had a significant positive effect on audit report lag. Meanwhile, variables of the accounting complexity, auditor reputation, audit tenure and auditors’ industry specialization did not show significant influence on audit report lag. Originality/value This study tests both company’s and auditor’s characteristic on audit report lag that as far as authors know never been tested simultaneously.

scholarly journals Pengaruh Umur Perusahaan, Ukuran Perusahaan, Reputasi Auditor, Dan Pergantian Auditor

2020 ◽  
Vol 2 (3) ◽  
pp. 2912-2928
Author(s):  
Ranti Dewi Fortuna ◽  
Efrizal Syofyan
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Company Size ◽  
Manufacturing Companies ◽  
Audit Report ◽  
Financial Reports ◽  
Auditor Switching ◽  
Auditor Reputation

The purpose of this study is to analyze the influence of company age, company size, auditor reputation and auditor change on auditor switching. The data used in this study are annual and financial reports on manufacturing companies listed on the Indonesia Stock Exchange (IDX) in the 2014-2018 period. The method of sampling data using purposive sampling method based on certain criteria. Based on the sampling method, a sample of 230 companies was obtained. Testing the hypothesis in this study using multiple linear regression analysis. The results showed that company size, auditor reputation and auditor switching had no effect on audit report lag and company age had a positive effect on audit report lag.

scholarly journals Pengaruh Sales Growth dan Keahlian Keuangan Komite Audit terhadap FinancialDistress.(Studi Empiris Pada Perusahaan Manufaktur Sub Sektor Otomotif dan Komponen yang Terdaftar di Bursa Efek IndonesiaPeriode 2012-2016)

2019 ◽  
Vol 21 (2) ◽  
Author(s):  
Nurhayati Nurhayati
Keyword(s):  
Financial Distress ◽  
Research Method ◽  
Audit Committee ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Linear Regression Method ◽  
Sales Growth ◽  
Manufacturing Companies ◽  
Financial Expertise ◽  
Negative Effect

Abstract. This study aims to determine the effect of sales growth and financial expertise of audit committee to financial distress. The research method used is descriptive research method with quantitative approach. Analyzer used in this research is multiple regression analysis by using sample of research as many as 9 manufacturing companies of the automotive and component sub-sector listed on The Indonesia Stock Exchange in 2012-2016. Hypothesis testing is done by multiple linear regression method using SPSS version 17. The result showed that the sales growth variable has no significant negative effect to financial distress, and financial expertise of audit committee has negative and significant effect to financial distress. The result of this study can be recommendation for investor to be able to analyse the company’s financial statements related to the decision to invest. Recommendation for the next researchers to be able to research all of manufacturing companies listed on Indonesia Stock Exchange and used other indicator of financial ratios contained in balance sheet, income statements, and cash flow statements.Keywords: Financial Distress, Audit Committee Financial Expertise, Sales Growth.

Audit committee ownership and audit report lag: evidence from Australia

2020 ◽  
Vol 28 (1) ◽  
pp. 96-125
Author(s):  
Md. Borhan Uddin Bhuiyan ◽  
Mabel D’Costa
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Reporting Quality ◽  
Financial Statements ◽  
Audit Committees ◽  
Financial Reporting Quality ◽  
Audit Report ◽  
Content Type ◽  
External Auditors ◽  
Using Data

Purpose This paper aims to examine whether audit committee ownership affects audit report lag. Independent audit committees are responsible for overseeing the financial reporting process, to ensure that financial statements are both credible and released to external stakeholders in a timely manner. To date, however, the extent to which audit committee ownership strengthens or compromises member independence, and hence, influences audit report lag, has remained unexplored. Design/methodology/approach This paper hypothesizes that audit committee ownership is associated with audit report lag. Further, the author hypothesize that both the financial reporting quality and the going concern opinions of a firm mediate the effect of audit committee ownership on audit report lag. Findings Using data from Australian listed companies, the author find that audit committee ownership increases audit report lag. The author further document that financial reporting quality and modified audit opinions rendered by external auditors mediate this positive relationship. The results are robust to endogeneity concerns emanating from firms’ deliberate decisions to grant shares to the audit committee members. Originality/value The study contributes to both the audit report timeliness and the corporate governance literatures, by documenting an adverse effect of audit committee ownership.

scholarly journals The effect of auditor characteristics on tax avoidance of Iranian companies

2020 ◽  
Vol 27 (2) ◽  
pp. 119-134 ◽  
Author(s):  
Mahdi Salehi ◽  
Hossein Tarighi ◽  
Tahereh Alidoust Shahri
Keyword(s):  
Stock Exchange ◽  
Emerging Market ◽  
Tax Avoidance ◽  
Audit Fees ◽  
Industry Specialization ◽  
Content Type ◽  
Auditor Industry Specialization ◽  
Auditor Tenure ◽  
The Relationship ◽  
Auditor Characteristics

Purpose The purpose of this paper is to investigate the relationship between auditor characteristics and the level of tax avoidance in an emerging market. Design/methodology/approach In this regard, the effect of various factors such as auditor tenure, auditor industry specialization, audit reports and audit fees on tax avoidance was examined. The study sample includes listed companies in the Tehran Stock Exchange. The time period of study is six years from 2011 to 2016. Also in this study, firm size, leverage, firm age and auditor size were controlled. Findings The results of this research were determined in four hypotheses. First and second hypotheses that explore the relationship between auditor tenure and auditor industry specialization with tax avoidance were not confirmed. But the results showed a significant relationship between the type of audit opinions and audit fees with tax avoidance. Originality/value The current study investigates the auditor characteristics on tax avoidance in a developing nation of Iran and the results may helpful the developing countries.

Audit committee expertise in large European firms

2020 ◽  
Vol 35 (9) ◽  
pp. 1313-1341
Author(s):  
César Zarza Herranz ◽  
Felix Lopez-Iturriaga ◽  
Nuria Reguera-Alvarado
Keyword(s):  
Audit Committee ◽  
Design Methodology ◽  
Current Knowledge ◽  
Committee Member ◽  
Audit Fees ◽  
Continuous Variable ◽  
Full Time ◽  
Audit Process ◽  
Content Type ◽  
Auditor Rotation

Purpose This paper aims to study how audit committee member expertise is related to certain features of the committee and to the audit process. Design/methodology/approach Based on information from 2,477 directors from 296 firms in eight European countries between 2005 and 2014, this study measures average audit committee expertise using a continuous variable, which combines education-based and experience-based expertise. Different measures of the audit process are then regressed against this and other control variables. Findings Average committee expertise has increased in recent years. Education-based and experience-based expertise seem to be complementary. Results also show that committees with greater expertise meet more frequently, have fewer directors with full-time dedication and pay lower audit fees. There is no link to changes in the external firm audit, which may be due to mandatory auditor rotation. Originality/value The paper provides a comprehensive metric of audit committee expertise that includes directors’ academic background, professional experience and qualifications. In addition, this study expands current knowledge concerning whether and how committee expertise affects the audit process.

Audit-related attributes, regulatory reforms and timely disclosure

2017 ◽  
Vol 15 (2) ◽  
pp. 158-179 ◽  
Author(s):  
Khaled Samaha ◽  
Hichem Khlif
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Emerging Market ◽  
Chief Executive ◽  
Policy Implications ◽  
Fiscal Year ◽  
Audit Report ◽  
Content Type ◽  
The Impact ◽  
Regulatory Reforms

Purpose This paper aims to examine the impact of audit-related attributes and regulatory reforms on timely disclosure as proxied by audit report lag (ARL) in an emerging market setting, namely, Egypt. Design/methodology/approach The paper used the balanced panel data of 372 firm-years observations of the most actively traded companies on the Egyptian Stock Exchange over the period from 2007 to 2010. The study measures the dependent variable of ARL as the number of days between the client’s fiscal year-end and the audit report. Findings Multivariate analysis indicates that audit committee activity (proxy for regulatory reforms) and external auditor type (proxy for audit-related attributes) contribute significantly to the reduction of ARL and increase disclosure timeliness. Furthermore, the paper found that ARL witnessed a slight decrease following the adoption of the new Egyptian Standards on Auditing (ESA). Finally, the paper’s findings show that industry types moderate the relationship between ARL and several audit-related variables and corporate governance attributes. Practical implications The results may have policy implications for both regulators and investors. For instance, policymakers in Egypt can enact new rules to reduce the Chief Executive Officer duality and establish the minimum required number of audit committee meetings to improve transparency level and, thus, increase disclosure timeliness. Besides, if future regulations aiming to increase disclosure timeliness are intended by Egyptian regulators, this paper’s findings suggest that this may have implications for the audit market because the Big Four audit firms will be more able to meet shorter audit delays. Originality/value The empirical evidence provided in this study further enhances the understanding of timely disclosure in Egypt which represents one of the leading emerging markets in the Middle East and North Africa region.

scholarly journals DOES FINANCIAL DISTRESS HAS AN EFFECTS ON AUDIT REPORT LAG? (STUDY ON MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE)

AKUNTABILITAS ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 19-34
Author(s):  
Nur Khamisah ◽  
Anisa Listya ◽  
Nyimas Dewi Murnila Saputri
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Manufacturing Companies ◽  
Z Score ◽  
Audit Report ◽  
Audit Process ◽  
Final Sample ◽  
Cpa Firm ◽  
Big Four

This study aims to examine the effect of financial distress on audit report lag and how the size of CPA Firm moderate the effect between financial distress and audit report lag. This study was held at manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019. The final sample there were 318 observations, with a purposive sampling method. The variable financial distress is measured by the Altman Z Score proxy, which is the best model for measuring the state of financial distress being experienced by the company. The size of CPA Firm is measured by dummy variables, given a value of 1 if it is a Big Four CPA Firm and 0 if it is not a Big Four CPA Firm. This study use multiple linear regression to analyze the data. Based on the results of the analysis found that financial distress has negative and significant effect on audit report lag. It means that the smaller the Z Score of a company (which means the company is experiencing financial distress), the longer the financial statement audit process will be. This negative relationship between financial distress is strengthened by the size of CPA Firm.

scholarly journals Factors Affecting Audit Report Lag (Empirical Studies on Manufacturing Listed Companies on the Indonesia Stock Exchange)

2021 ◽  
Vol 4 (1) ◽  
pp. 44-54
Author(s):  
Jacqueline Vania Jessica Jura ◽  
ML Denny Tewu
Keyword(s):  
Stock Exchange ◽  
Empirical Studies ◽  
Company Size ◽  
Manufacturing Companies ◽  
Audit Report ◽  
Factors Affecting ◽  
Audit Opinion ◽  
Analysis Technique ◽  
Negative Effect ◽  
Auditor Reputation

The objective of this research is to determine whether Company Size, Company Age, Debt to Equity (DER), Return on Assets (ROA), Audit Opinion, and Auditor Reputation have a significant effect on Audit Report Lag. This research was conducted at manufacturing companies listed on the Indonesia Stock Exchange in the period 2015 to 2019. The study used 93 companies as samples, a total of 490 samples as a whole. The data analysis technique used is multiple linear analysis and the results obtained are that the DER variable has a significant positive effect, while ROA and Audit Opinion have a negative effect on the audit report lag. The variables of company size and auditor reputation do not have a significant effect, while the variable of company age has a significant positive result but is contrary to the initial expectations.

scholarly journals The Analysis of Factors Affecting the Amount of Audit Fee with Type of Public Accountant Office as a Moderating Variable in Manufacturing Companies Listed on the IDX for the 2013-2019 Period

2022 ◽  
Vol 9 (1) ◽  
pp. 89-99
Author(s):  
Nova Kharlinda ◽  
Iskandar Muda ◽  
Keulana Erwin
Keyword(s):  
Firm Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Audit Fees ◽  
Manufacturing Companies ◽  
Audit Report ◽  
Factors Affecting ◽  
Analysis Technique ◽  
Audit Fee ◽  
Public Accountant

This study analyzes the factors influencing the number of audit fees in manufacturing companies listed on the Indonesia Stock Exchange in 2013 – 2019. The number of audit fees depends on several factors that influence it. The Indonesian Institute of Certified Public Accountants has determined the minimum standard of audit fees charged to auditee companies but does not include a substantial total cost and tends to fluctuate and vary. This study uses the audit committee, audit report lag, and firm size as independent variables, the type of public accounting firm as the moderating variable, and audit fee as the dependent variable. This study uses causal associative as the research design. The data was collected by collecting data on the company's financial statements from 2013 to 2019. The study population was 176 manufacturing companies whose samples were taken using the purposive sampling method. The number of research samples was 20, with 140 observations. The data analysis technique uses Studio R's panel analysis regression model as the test tool. The results showed that the Audit Committee, audit report lag, and firm size each had a significant positive effect on the audit fee's value and jointly had a significant impact on the audit fee. The type of public accountant office is not a moderating variable. Keywords: audit fee, audit committee, audit report lag, firm size, public accountant office.

Board characteristics, auditing characteristics and audit report lag in African Central Banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Henry Chalu
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Gender Diversity ◽  
Central Banks ◽  
Audit Report ◽  
Content Type ◽  
Independent Variables ◽  
Board Characteristics ◽  
Mediating Variables ◽  
Board Gender Diversity

PurposeThe purpose of this paper is to examine the determinants of audit report lag in Sub-Saharan African Central Banks. In this case, the determinants were divided into two categories: independent variables and mediating variables. The independent variables, which were generated from board characteristics, included board size, board gender diversity, governor duality, audit committee size and audit committee meetings. The mediating variables were auditing characteristics and they comprised audit mandate, audit approach and audit quality.Design/methodology/approachThe study used data from 192 observations from African Central Banks' financial reports for the period 2000–2016. The data collected were analyzed using path analysis, whereby four regression models were run and tested simultaneously. From the analysis, the study determined total effects and then decomposed the total effects into direct and indirect effects.FindingsThe study results indicate that in the case of board characteristics, governor duality and audit committee size were found to have a positive influence on audit report lag. In the case of audit quality, only audit mandate was found to have a negative influence on audit quality in the Central Banks. However, the introduction of mediating variables increased the positive effect of governor duality and audit committee size, while also making board size and board gender diversity have a significant negative effect on audit report lag.Practical implicationsThe findings of this paper have implications for the practice and policy of the auditing and governance of Central Banks, which includes designing appropriate governance structures as well as proper auditing strategies.Originality/valueThis is the first study which has examined factors influencing audit report lag in Central Banks. Previous studies on Central Banks' governance have examined the independence and autonomy of the Central Banks, as well as their accounting. This paper extends prior studies by examining the effects of those factors. Another contribution is the study's application of auditing characteristics as mediating variables.

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