The Role of Legal Compliance and Good Corporate Governance on Reducing Audit Delay on Publicly Listed Companies in Indonesia

Abstract

Audit Report Lag (ARL) the completion of the audit that the length of time is measured from the date of closing of the financial year until the issuance of the audit report signed by the auditor. Benefits of the financial statements will be reduced if the report is not available on time. This study examines the Good Corporate Governance (GCG) mecanism and eksternal auditor that affect ARL including the board of ditectors, independent board of ditectors, audit committee and the external auditors and regulatory pressures. This study sampled kompas 100 companies in Indonesia Stock Exchange, with a sample of 94. This study was measured by using a Moderated regression analysis. These results indicate that Partially, the board of directors, independent board of directors have a significant effect on ARL before and after uses moderating variabel legal pressure, and the audit committe, external auditors have not a significant effect on ARL. Regulatory pressures plays a role as a moderator variable in the relationship the ARL with the GCG.

Determinant of Audit Delay: Empirical Study of Companies in Indonesia

“…Profitability is confirmed as one of the key variables related to AD, according to the data. The result confirms some studies (see Ambarwati & Putri, 2016;Fujianti, 2019;Lai et al, 2020;. This study's primary goal is to investigate the associations between audit reporting timelines and several variables, including profitability, leverage, audit opinion, and audit reputation.…”

“…Whittred & Zimmer, 1984). Some research looked at the factors that contribute to ADs (audit report lag), such as corporate governance (Kaaroud et al, 2020;Nor et al, 2010), board characteristics, CEO duality, audit committee existence and independence (Abernathy et al, 2017;Bhuiyan & D'Costa, 2020), profitability (Ambarwati & Putri, 2016;Fujianti, 2019;Ismail et al, 2022;Lai et al, 2020), audit firm attributed , financial reporting complexity (Chen et al, 2022).…”

The Role of Good Corporate Governance in Effort to Improve Environmental Quality Through Emphasis on Sustainability Report

“…Madona and Khafid, (2020) show the role of the board of commissioners in the presentation of the sustainability report, as Aliniar and Wahyuni, (2017). The importance of preserving the environment is proven by presenting a sustainability report and demands for GCG to uphold business ethics and compliance with regulations (Fujianti, 2019).…”