Determinants of audit reporting: The moderating role of the audit committee
Keywords:
audit report lag, profitability, solvency, audit tenure, firm size, audit committeeAbstract
This study examines the effects of profitability, solvency, audit tenure, and firm size on audit report lag, with the audit committee serving as a moderating variable. A quantitative explanatory approach was employed using secondary data obtained from the audited financial statements and annual reports of property, real estate, and building construction companies listed on the Indonesia Stock Exchange during 2020–2024. Purposive sampling resulted in 40 companies and 200 firm-year observations. The data were analyzed using descriptive statistics, classical assumption tests, multiple linear regression, and Moderated Regression Analysis. The results show that profitability, solvency, and audit tenure have negative and statistically significant effects on audit report lag, whereas firm size has no significant effect. The audit committee has a positive and significant direct effect on audit report lag. Furthermore, the interaction effects between the audit committee and profitability, solvency, and audit tenure are positive and significant. These findings indicate that the audit committee weakens the negative effects of profitability, solvency, and audit tenure on audit report lag. Thus, more intensive audit committee oversight may reduce the acceleration of audit completion because additional review, verification, and coordination procedures require more time. The study contributes to the audit timeliness literature by integrating financial characteristics, auditor–client engagement, and corporate governance within a single empirical model in a sector characterized by complex transactions and substantial information asymmetry.
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