Determinants of Audit Report Lag during the Covid-19 Pandemic: A Study on Companies Conducting IPOs and Indexed LQ-45
DOI:
https://doi.org/10.23887/jia.v7i1.30835Keywords:
pandemic, audit report lag, profitability, the size of public accounting firms, firm ageAbstract
This research will re-examine the factors that influence the audit report lag, including profitability, size of public accounting firms, and firms' age at companies conducting IPOs in 2019 and including the LQ-45 index on the Indonesia Stock Exchange during the COVID-19 pandemic. This study uses the Big-Four categorization as a proxy of size of the public accounting firm. This type of research uses the causal effect with a quantitative research approach. The final sample was determined to be 99 company data. The data analysis technique used multiple regressions. The results showed that the audit report lag was negatively influenced by the size of public accounting firms and firms' age, while the profitability factor did not affect it. The audit report lag contribution was influenced by the three factors above and simultaneously.References
Albitar, K., Gerged, A. M., Kikhia, H., & Hussainey, K. (2020, August 25). Auditing in times of social distancing: The effect of COVID-19 on auditing quality. International Journal of Accounting & Information Management.
Alkhatib, K., & Marji, Q. (2012). Audit reports timeliness: Empirical evidence from Jordan. In H. Arasli (Ed.), World Conference on Business, Economics and Management (BEM-2012), May 4–6 2012. 62, pp. 1342 – 1349. Antalya, Turkey: Elsevier Ltd. https://doi.org/10.1016/j.sbspro.2012.09.229
Ashton, R., Willingham, J., & Elliott, R. (1987). An empirical analysis of audit delay. Journal of Accounting Research, 25(2), 275-292. http://www.jstor.org/stable/pdf/2491018.pdf
BAPEPAM. (2011). Salinan Keputusan Ketua Badan Pengawas Pasar Modal dan Lembaga Keuangan Nomor: KEP-346/BL/2011 tentang Penyampaian Laporan Keuangan Berkala Emiten atau Perusahaan Publik. Jakarta: Badan Pengawas Pasar Modal.
Brigham, E., & Houston, J. (2015). Fundamentals of Financial Management (14 ed.). (J. Sabation, Ed.) Boston: Cengage Learning.
CA ANZ. (2020, July 17). Should auditors reduce their fees during COVID-19? Retrieved Agustus 06, 2020, from Chartered Accountants Australia and New Zealand: https://www.acuitymag.com/finance/should-auditors-reduce-their-fees-during-covid19
Castka, P., Searcy, C., & Fischer, S. (2020). Technology-enhanced Auditing in Voluntary Sustainability Standards: The Impact of COVID-19. Sustainability, 12(11), 4740. https://doi.org/10.3390/su12114740
DeAngelo, L. (1981). Auditor Size and Audit Quality. Journal of Accounting and Economics, 3(3), 183-199. http://dx.doi.org/10.1016/0165-4101(81)90002-1
Endiana, I. D., & Apriada, I. K. (2020). Analisis Dampak Internal yang Mempengaruhi Audit Delay. Accounting Profession Journal (ApaJi), 2(2), 82-93. https://doi.org/10.35593/apaji.v2i2.15
Ezat, A. N. (2015). The impact of audit-related factors on audit report lag for the Egyptian listed non-financial companies. Journal of the Faculty of Commerce for Scientific Research, 52(2).
FRC. (2020). Guidance on audit issues arising from the Covid-19 (Coronavirus) pandemic. England: Financial Reporting Council.
Fully, R. B., & David, K. D. (2020). Causes of Audit Delay and their Effects on Public Sector Audit Quality (A case of the Supreme Audit Institution of Liberia - General Auditing Commission). Faculty of Business. Sweden: Hogskolan Kristianstad.
Ghozali, I., & Fuad. (2008). Structural Equation Modeling: Teori, Konsep dan Aplikasi dengan Program Lisrel 8.80 (2 ed.). Semarang: Badan Penerbit UNDIP.
Gitman, L., & Zutter, C. (2015). Principles of Managerial Finance (14 ed.). (D. Battista, Ed.) Boston: Prentice Hall.
Grant Thornton and Prime Database. (2016). “The Future of Audit in India”– A series by Grant Thornton Part I – Mandatory Firm Rotation– Is India Inc. ready? – A survey. Connaught Circus, New Dehli: Grant Thornton India LLP.
Husain, T. (2017). Analisis Determinan Faktor-Faktor Yang Mempengaruhi Niat Penggunaan Software Audit. Jurnal Ilmiah Matrik, 19(2), 131-150. https://doi.org/10.33557/jurnalmatrik.v19i2.381
Husain, T. (2019). Analisis Layanan Google Scholar Sebagai Bahan Referensi Terhadap Kepuasan Mahasiswa. ULTIMA InfoSys, X(1), 69-75. https://doi.org/10.31937/si.v10i1.1086
Husain, T. (2020). Mapping Evolution of Audit Quality Measurement. European Journal of Business and Management Research, 5(3), 1-7. http://dx.doi.org/10.24018/ejbmr.2020.5.3.304
Husain, T., & Budiyantara, A. (2020). Analysis of Control Security and Privacy Based on e-Learning Users. SAR Journal, 3(2), 51-58. https://doi.org/10.18421/SAR32-01
Husain, T., & Dewi, E. P. (2020). Rasio Keuangan: Studi Komparasi Pada Perusahaan Industri Manufaktur dan Sektor Jasa Yang Melakukan Initial Public Offerings (IPO) Tahun 2018. JIMF (Jurnal Ilmiah Manajemen Forkamma), 3(2), 131-141. http://dx.doi.org/10.32493/frkm.v3i2.3598
Husain, T., & Rini, I. G. (2020). The Audit Quality and Delay: Evidence from Indonesia. Business Perspective Review, 2(3), 22-32. https://doi.org/10.38157/business-perspective-review.v2i3.195
Husain, T., & Syniuta, A. (2020). Audit Fee and "The Big-Four": A Comparative Study at Initial Public Offerings (IPO) Companies in Indonesia Stock Exchange (IDX). Multidisciplinary European Academic Journal, 2(4), 1-7.
IAPI. (2020). Respon Auditor atas Pandemi Covid-19: Terhadap Laporan Keuangan, Prosedur Audit, dan Pertimbangan Praktis Penunjang Kualitas Audit. Jakarta: Institut Akuntan Publik Indonesia.
IDX. (2020). Listed Companies: Financial Statements & Annual Report. Retrieved 2020, from Indonesia Stock Exchange: https://www.idx.co.id/en-us/listed-companies/financial-statements-annual-report/
IFAC. (2020, April 21). International Federation of Accountants. Retrieved October 2020, from Global Public Policy Committee | Extensions or other relief granted by regulators: https://www.ifac.org/system/files/uploads/GPPC%20regulatory%20inventory%20-%2027%20April%202020.pdf
IIASB. (2014). A Framework for Audit Quality: Key Elements that Create an Environment for Audit Quality. New York: The International Federation of Accountants (IFAC).
Irman, M., Hayati, R., & Agia, L. N. (2020). An Empirical Study of The Determinants of Audit Report Delay in Indonesia Banking Companies. Journal of Applied Business and Technology, 1(3), 205-211.
KPMG. (2020). COVID-19: Potential impact on financial reporting? Retrieved August 29, 2020, from https://home.kpmg/xx/en/home/insights/2020/03/covid-19-financial-reporting-resource-centre.html
Lunenburg, F. C. (2012). Compliance Theory and Organizational Effectiveness. International Journal of Scholarly Academic Intellectual Diversity, 14(1).
Mackenzie, J., & Smith, D. W. (2020). COVID-19: A novel zoonotic disease caused by a coronavirus from China: What we know and what we don't. Microbiology Australia, 41(1), 45-50. https://doi.org/10.1071/MA20013
Ningrum, L. A., & Ardini, L. (2017). Pengaruh Opini Auditor, Profitabiltias, Ukuran Perusahaan, Solvabilitas, dan Kantor Akuntan Publik terhadap Audit Delay. Jurnal Ilmu dan Riset Akuntansi, 7(7).
Ocak, M., & Özden, E. A. (2018). Signing Auditor-Specific Characteristics and Audit Report Lag: A Research from Turkey. The Journal of Applied Business Research, 34(2), 277-294. https://ssrn.com/abstract=2998842
OJK. (2020). OJK Longgarkan Batas Waktu Laporan Keuangan dan RUPS. Siaran Pers, Otoritas Jasa Keuangan, Jakarta.
Oktari, Y., & Cahya, A. T. (2020). Effect Of Profitability, Leverage, and Size of Audit Public Accountant Of The Audit. eCo-Fin, 2(1), 171-180. https://doi.org/10.32877/ef.v2i1.156
Pasupati, B., & Husain, T. (2020). COVID-19 Pandemic: Audit Delay and Reporting in Indonesian. International Journal of Engineering and Science, 10(11), 08-11.
PwC. (2020). Retrieved August 29, 2020, from COVID-19: Responding to the business impacts of Coronavirus: https://www.pwc.com/gx/en/issues/crisis-solutions/covid-19.html
Rahmawati, W. T. (2020, Maret 02). Dua WNI terinfeksi corona, IHSG langsung anjlok 1,02% ke bawah 5.400. Retrieved Oktober 2020, from Market & Rekomendasi: https://investasi.kontan.co.id/news/dua-wni-terinfeksi-corona-ihsg-langsung-anjlok-102-ke-bawah-5400
Rif’at, A., & Sulistyowati, W. A. (2019). Predicting Audit Delay of Consumer Goods Companies Listed in Indonesia Stock Exchange. Economics and Accounting Journal, 2(1). http://dx.doi.org/10.32493/eaj.v2i1.y2019.p01-08
Rusmin, & Evans, J. (2017). Audit quality and audit report lag: case of Indonesian listed companies. Asian Review of Accounting, 25(2), 191-210. https://doi.org/10.1108/ARA-06-2015-0062
Sani, A., Pusparini, N. N., Rizal, R., Khristiana, Y., Zailani, A. U., & Husain, T. (2020). E-Business Adoption Models in Organizational Contexts on The TAM Extended Model: A Preliminary Assessment. 8th International Conference on Cyber and IT Service Management (CITSM 2020). Pangkalpinang: UIN Syarif Hidayatullah. https://ieeexplore.ieee.org/abstract/document/9268869/
Santosa, A. D. (2020). Analisis Kuantitatif Menggunakan Stata (Cetakan Pertama). Yogyakarta: Kepel Press.
Santosa, A. D. (2019). Analisis Multivariat (Cetakan Ketiga) (3 ed.). Yogyakarta: Penerbit Kepel Press.
StataCorp LLC. (2020). Retrieved from https://www.stata.com/
Supranto, J., & Limakrisna, N. (2019). Petunjuk Praktis Penelitian Ilmiah untuk Menyusun Skripsi, Tesis dan Disertasi (5 ed.). Bogor: Penerbit Mitra Wacana Media.
Suwardy, T., Harrison Jr., W. T., Tietz, W. M., Horngren, C. T., & Thomas, C. W. (2019). Financial Accounting: International Financial Reporting Standards (Global, 11 ed.). London: Pearson.
Tayler, T. (1990). Why People Obey the Law. New Haven and London: Yale University Press.
World Health Organization. (2020, January 31). Novel coronavirus (2019-nCoV). Retrieved Agustus 1, 2020, from Situation Report - 11: https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200131-sitrep-11-ncov.pdf?sfvrsn=de7c0f7_4
Xu, Y., Carson, E., Fargher, N., & Jia, L. (2013). Responses by Australian auditors to the global financial crisis. Accounting and Finance, 53(1), 301-338. https://doi.org/10.1111/j.1467-629X.2011.00459.x
Yuliusman, Putra, W. E., Gowon, M., Dahmiri, & Isnaeni, N. (2020). Determinant Factors Audit Delay: Evidence from Indonesia. International Journal of Recent Technology and Engineering (IJRTE), 8(6), 1088-1095. https://doi.org/10.35940/ijrte.F7560.038620
Zailani, A. U., Husain, T., & Budiyantara, A. (2020). Analisis Simulasi Sistem Penunjang Keputusan: Model Matematis Dengan Pendekatan Goodness-of Fit Berbasis Structural Equation Model. SMARTICS Journal, 6(1), 10-16. https://doi.org/10.21067/smartics.v6i1.4157.
Downloads
Published
Issue
Section
License
JIA (Jurnal Ilmiah Akuntansi) is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License that allows others to share the work with an acknowledgment 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 acknowledgment 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) before and during the submission process, as it can lead to productive exchanges and earlier and greater citation of published work (See The Effect of Open Access).
1.png)
