Do Internal Auditor and Audit Committee Have Impact on Audit Report Lag for Mining Industry?
Keywords:Internal Auditor, Audit Committee, Company Size, Audit Report Lag (ARL)
AbstractThe purpose of this study is to examine the effect of the Internal Auditor and Audit Committee on Audit Report Lag (ARL) and the moderating effect of Company Size on the relationship between the Internal Auditor and the Audit Committee on ARL. Using mining sector companies listed on the Indonesia Stock Exchange (BEI) from 2016 to 2018, this study results in the number of observations of 99 cases. The results show that the Internal Auditor and Audit Committee have a negative effect on ARL. The result also shows that Company Size has a moderating effect on the influence of the Internal Auditor and Audit Committee on ARL.
E. Bonson-Ponte, T. Escobar-Rodriguez, and C. Borrero-Dominguez, “Empirical analysis of delays in the signing of audit reports in Spain.,” Int. J. Audit., vol. 12, no. 2, pp. 129–140, 2008.
H. Afify, “Determinants of audit report lag: Does implementing corporate governance have any impact? Empirical evidence from Egypt,” J. Appl. Account. Res., vol. 10, no. 1, pp. 56–86, 2009.
J. S. Demski and G. A. Feltham, “Forecast Evaluation,” Account. Rev., vol. 47, no. 3, pp. 533–548, Nov. 1972.
M. Dao and T. Pham, “Audit tenure, auditor specialization and audit report lag,” Manag. Audit. J., vol. 29, no. 6, pp. 490–512, 2014.
R. Putra, Sutrisno, and E. Mardiati, “Determinants of audit delay: Evidence from public companies in Indonesia,” Int. J. Bus. Manag. Invent., vol. 6, no. 6, pp. 12–21, 2017.
A. Puspitasari, “Pengaruh internal auditor dan komite audit terhadap audit report lag dengan ukuran perusahaan sebagai variabel moderating (Studi empiris pada perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia periode 2016 – 2018),” Universitas Tanjungpura, 2020.
P. J. Baldacchino, L. Grech, K. Farrugia, and N. Tabone, “An analysis of audit report lags in Maltese companies,” Contemp. Stud. Econ. Financ. Anal., vol. 98, pp. 161–182, 2017.
S. Leventis, P. Weetman, and C. Caramanis, “Determinants of audit report lag: some evidence from the Athens Stock Exchange.,” Int. J. Audit., vol. 9, pp. 45–58, 2005.
S. Owusu-Ansah, “Timeliness of corporate financial reporting in emerging capital markets: empirical evidence from the Zimbabwe Stock Exchange,” Account. Bus. Res., vol. 30, no. 3, pp. 241–254, 2000.
N. Sultana, H. Singh, and J.-L. W. M. der Zahn, “Audit Committee Characteristics and Audit Report Lag,” Int. J. Audit., vol. 19, no. 2, pp. 72–87, 2015.
O. Abdelsalam and D. Street, “Corporate governance and the timeliness of corporate internet reporting by UK listed companies.,” J. Int. Accounting, Audit. Tax., vol. 16, no. 2, pp. 111–130, 2007.
N. O. Dibia and J. C. Onwuchekwa, “An examination of the audit report lag of companies quoted in the Nigerian Stock Exchange,” Int. J. Bus. Soc. Res., vol. 3, no. 9, pp. 8–16, 2013.
I. Ahmed Mohammed, A. Che-Ahmad, and M. Malek, “Shareholder’s involvement in the audit committee, audit quality and financial reporting lag in Nigeria,” Bus. Econ. Horizons, vol. 14, no. 2, pp. 355–374, 2018.
W. Al-Ghanem and M. Hegazy, “An empirical analysis of audit delays and timelines of corporate financial reporting in Kuwait,” Eurasian Bus. Rev., vol. 1, no. 1, pp. 73–90, 2011.
A. Apriayanti and S. Santosa, “Pengaruh Atribut Perusahaan dan Faktor Audit Terhadap Keterlambatan Audit pada Perusahaan yang Terdaftar di Bursa Efek Malaysia,” J. Akunt. dan Keuang., vol. 16, no. 2, pp. 74–87, 2015.
S. Puat Nelson and S. Norwahida Shukeri, “Corporate governance and audit report timeliness: Evidence from Malaysia,” Account. Asia, pp. 109–127, 2015.
K. Apadore and M. M. Noor, “Determinants of audit report lag and corporate governance in Malaysia,” Int. J. Bus. Manag., vol. 8, no. 15, 2013.
M. R. Abdillah, A. W. Mardijuwono, and H. Habiburrochman, “The effect of company characteristics and auditor characteristics to audit report lag,” Asian J. Account. Res., vol. 4, no. 1, pp. 129–144, 2019.
R. Putra, Sumadi, and B. Y. Pratiwi, “Moderating effect of firm size and audit complexity on the influence of internal auditor on audit delay,” APMAJ, vol. 13, no. 2, pp. 201–2015, 2018.
Rusmin and J. Evans, “Audit quality and audit report lag: Case of Indonesia listed companies,” Asian Rev. Account., vol. 25, no. 2, pp. 191–210, 2017.
R. Putra, T. Sutrisno, and E. Mardiati, “Audit committee, contingency factors, and audit report lag: Evidence from mining company in Indonesian Stock Exchange,” Res. J. Financ. Account., vol. 8, no. 10, pp. 1–9, 2017.
S. R. Ika and N. A. Mohd Ghazali, “Audit committee effectiveness and timeliness of reporting: Indonesian evidence,” Manag. Audit. J., vol. 27, no. 4, pp. 403–424, 2012.
Z. Hajiha and A. Rafiee, “The impact of internal audit quality on audit delays,” Middle-East J. Sci. Res., vol. 10, no. 3, pp. 389–397, 2011.
F. A. Alali and R. J. Elder, “Determinants of audit report lag in the banking industry: updated evidence,” Int. J. Accounting, Audit. Perform. Eval., vol. 10, no. 4, pp. 364–394, 2014.
S. Rachmawati, “Pengaruh faktor internal dan eksternal perusahaan terhadap audit delays dan timeliness,” J. Akunt. dan Keuang., vol. 10, no. 1, pp. 1–10, 2008.
N. P. Swami and M. Y. Lastrini, “Pengaruh karakteristik corporate governance terhadap audit report lag,” E-Jurnal Akunt., vol. 4, no. 3, pp. 530–549, 2013.
G. Fisher, “Contingency theory, management control system and firm outcomes: Past results and future directions,” Behav. Res. Account., no. 10, pp. 47–64, 1998.
H. Mintzberg and P. Romelaer, The Structuring of Organizations: A Synthesis of the Research. Prentice-Hall, 1979.
K. Alkhatib and Q. Marji, “Audit reports timeliness: Empirical evidence from Jordan,” Procedia - Soc. Behav. Sci., vol. 62, pp. 1342–1349, 2012.
M. L. Ettredge, C. Li, and L. Sun, “The Impact of SOX Section 404 Internal Control Quality Assessment on Audit Delay in the SOX Era,” Audit. A J. Pract. Theory, vol. 25, no. 2, pp. 1–23, Nov. 2006.
M. C. Jensen and W. H. Meckling, “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, 3 J. Fin. Econ. 305 (1976),” Jensen3053J. Fin. Econ, pp. 162–176, 1976.
S. Suharni, S. Sari, and S. Wulandari, “Pengaruh karakteristik audit internal terhadap ketepatan waktu pelaporan keuangan.,” Ekomaks, vol. 2, no. 1, pp. 90–102, 2013.
A. N. Mahendra and N. L. Widhiyani, “Pengaruh GCG, opini auditor dan internal auditor terhadap audit delay pada perusahaan relekomunikasi di BEI,” E-Jurnal Akunt., vol. 21, no. 2, pp. 1601–1629, 2017.
Y. M. Hassan, “Determinants of audit report lag: Evidence from Palestine,” J. Account. Emerg. Econ., vol. 6, no. 1, pp. 12–32, 2016.
D. Kurniawan, “Faktor-faktor yang mempengaruhi audit delay (Studi empiris pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia),” Universitas Brawijaya, 2011.
F. Ali, W. Kim, J. Li, and C. Cobanoglu, “A comparative study of covariance and partial least squares based structural equation modelling in hospitality and tourism research,” Int. J. Contemp. Hosp. Manag., vol. 30, no. 1, pp. 416–435, 2018.
J. Hair, C. Hollingsworth, A. Randolph, and A. Chong, “An Updated and Expanded Assessment of PLS-SEM in Information Systems Research,” Ind. Manag. Data Syst., vol. 117, no. 3, pp. 442–458, 2017.
N. Mubyarto and K. Khairiyani, “Kebijakan Investasi, Pendanaan, Dan Dividen Sebagai Determinan Nilai Perusahaan,” J. Akunt. Multiparadigma, vol. 10, no. 2, pp. 328–341, 2019.
M. Muhsin, “Peran Tekanan Anggaran Waktu Auditor Dalam Memoderasi Effort Dan Kinerja Audit Judgment,” J. Akunt. Multiparadigma, vol. 9, no. 2, pp. 223–235, 2018.
J. R. Romo-González, J. Tarango, and J. D. Machin-Mastromatteo, “PLS SEM, a quantitative methodology to test theoretical models from library and information science,” Inf. Dev., vol. 34, no. 5, pp. 526–531, 2018.
A. Usakli and K. Kucukergin, “Using partial least squares structural equation modeling in hospitality and tourism,” Int. J. Contemp. Hosp. Manag., vol. 30, no. 11, pp. 3462–3512, 2018.
D. Kumar and K. Purani, “Model specification issues in PLS-SEM,” Journal Hosp. Tour. Technol., vol. 9, no. 3, pp. 338–353, 2018.
Authors who publish with this journal agree to the following terms:
- Authors retain the copyright and publishing right, and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) followingthe publication of the article, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).<a href="http://creativecommons.org/lice