Farhan, Muhammad Arfan, Indayani
This study examines how earnings autocorrelation, earnings volatility, and company complexity on audit report lag. Earnings autocorrelation indicates the extent to which a company's current earnings are connected to its previous earnings, whereas earnings volatility measures the fluctuation of earnings over time. Company complexity refers to characteristics like size, organizational structure, and operational diversity, all of which can make the auditing process more challenging. The research seeks to explore how each of these factors influences the amount of time auditors need to complete and release their audit reports. Understanding these relationships can provide insights for both auditors and companies in improving audit efficiency and financial reporting timeliness. This study analyzes 61 real estate and property sector companies listed on the IDX between 2019 and 2022. The data for this research is secondary, sourced from the companies' annual reports available on the official websites of the IDX and the individual companies. The data collection for the research was conducted through documentation methods. Using the Slovin formula, the sample size included 38 companies, with a total of 152 observations over a period of 4 years. The sample for this study was selected using a simple random sampling method. Data analysis was conducted using the Structural Equation Model-Partial Least Square (SEM-PLS) approach with WarpPLS version 8.0 software. The results indicate that earnings autocorrelation, volatility, and complexity have a positive effect on audit report lag. The results showed that auditors can consider a more mature planning process if the company has an uncorrelated earnings correlation and a high level of volatility as well as the number of entities owned by the company so that the audit process is carried out in a timely manner. © 2024 IEEE.
Universitas Syiah Kuala, Accounting Departement, Banda Aceh, Indonesia
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