The Role of Audit Report Lag in Mediating the Effect of Auditor Switching and Financial Distress on Financial Statement Fraud

Abstract

This paper examines the effect of auditor switching and financial distress on financial statement fraud with audit report lag as the intervening variable. This research used 26 fraud companies and 45 non-fraud companies listed by Indonesia Stock Exchange that break the article VIII.G.7 and IX.E.2 issued by Financial Services Authority in 2020. This quantitative research used Partial Least Square (PLS) with WarpPLS 7.0 tools. We conclude that financial distress and audit report lag directly affect Financial Statement fraud. It also shows that audit report lag partially mediates the relationship between financial distress and financial statement fraud

Pengaruh Rasio Keuangan terhadap Financial Distress Perusahaan Pariwisata yang Terdaftar di BEI

“…Financial distress adalah sebuah kondisi perusahaan yang menghadapi tekanan keuangan akibat dari buruknya kinerja atau penurunan pendapatan selama beberapa periode, sehingga tidak dapat memenuhi kewajiban seperti pembayaran hutang atau bunga pinjaman hutangnya (Handoko dkk. dalam Nuristya, 2022). Untuk mengatasi kondisi ini, perusahaan harus segera melakukan tindakan yang korektif dan tepat agar dapat bertahan di tengah kesulitan keuangan yang dihadapi.…”