Corporate governance mechanisms and audit report lag moderated by audit complexity

  • Wa Ode Irma Sari brawijaya university
  • Bambang Subroto
  • Abdul Ghofar
Keywords: Audit Report Lag, Corporate Governance, Audit Complexity

Abstract

This study aims to verify the correlation between corporate governance mechanisms, reflected independent commissioners, audit committee and audit tenure to audit report lag, and the audit complexity has able to moderate the relationship between corporate governance mechanisms to audit report lag. This study uses a population of manufacturing companies that publish their financial statements on the Indonesian Stock Exchange in 2015-2017. The samples are selected with a purposive sampling method. There is 100 manufacturing company selected as the sample for the period of 2015-2017. This study was tested by using the Moderate Regression Analysis test. The results of this study indicate that the audit committee and audit tenure have a negative effect on audit report lag, but the independent commissioner has an insignificant effect on audit report lag. Audit complexity is proven to increase audit report lag as an increase audit committee. This research provides the capital market authority (OJK) to issue policies and strict sanctions, thus encouraging companies to publish audited financial statements more time.

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Published
2019-10-26
How to Cite
Sari, W. O., 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 (2147- 4478), 8(6), 256-261. https://doi.org/10.20525/ijrbs.v8i6.536
Section
Articles