The Effect of Listering Age

Oct 13, 2025 by windailys.com 88 views

Effect of Tenure Audit and Listering Age on Audit Report Lags with the Specialization of the Auditor Industry as a Moderating Variable in Consumer Goods Companies Listed on the Indonesia Stock Exchange

Introduction

The Indonesia Stock Exchange (IDX) is one of the largest stock exchanges in Southeast Asia, with a significant number of consumer goods companies listed on it. As a result, the quality of audit reports has become a crucial factor in maintaining the transparency and accountability of these companies. However, the delay in audit reports has become a significant issue, affecting not only the companies but also the investors and regulators. This study aims to explore the effect of the term of office of the audit (tenure audit) and the age of listing on the delay in the audit report (audit report lag) at the consumer goods company listed on the IDX. Additionally, this study investigates the role of the auditor's industry specialization as a moderating variable.

Background

The delay in audit reports can have a negative impact on the company, including the late disclosure of financial information to the public, reducing investor confidence, and the potential for fines from the regulator. Therefore, it is essential to identify the factors that influence the delay in audit reports. Previous studies have shown that the term of office of the auditor and the age of listing can affect the delay in audit reports. However, the role of the auditor's industry specialization as a moderating variable has not been fully explored.

Methodology

This study uses a purposive sampling method to select 19 consumer goods companies listed on the IDX. The data were analyzed using multiple linear regression analysis through SPSS version 17 software. The dependent variable is the delay in audit reports, while the independent variables are the term of office of the auditor, the age of listing, and the auditor's industry specialization.

Results

The results of this study show that partially, only the age of listing has a significant positive effect on the delay in the audit report, while the auditor's term does not show a significant effect. However, simultaneously, both the term of office of the auditor and the age of listing affect the late audit report on the consumer goods company. Furthermore, this study found that the specialization of the auditor industry can be a moderating variable that strengthens the relationship between the term of office of the auditor and the delay in the audit report. On the other hand, the specialization of the auditor industry weakens the relationship between the age of listing and the delay of the audit report.

Deeper Analysis

The results of this study provide several important points to consider:

The Effect of Listering Age

This finding shows that companies that have been registered longer on the IDX tend to experience a longer delay in audit reports. This may be caused by the complexity of the company's operations that have long been operating, so it requires a longer time to audit financial statements.

Role of the Specialization of the Auditor Industry

Industry Specialization Auditor is proven to be able to strengthen the relationship between the term of office of the auditor and the delay in the audit report. This shows that auditors who have specialization in certain fields, such as the consumer goods industry, have a better understanding of the company's business and can be faster in completing audits.

The Importance of Delays in Audit Reports

Delays in Audit Reports can have a negative impact on the company, including the late disclosure of financial information to the public, reducing investor confidence, and the potential for fines from the regulator.

Implications and Recommendations

The results of this study have important implications for various parties:

For Companies

Consumer goods companies need to pay attention to the factors that can affect the delay in audit reports, including the term of office of the auditor, the age of listing, and specialization of the auditor industry.

For Auditors

Auditors can increase audit efficiency with a focus on specialization in certain fields and build close relationships with clients.

For Regulators

Regulators can consider issuing policies governing delays in audit reports, for example by setting a maximum time limit for audit settlement.

Conclusion

This study opens opportunities for further research, such as examining the effect of other factors that might affect the delay in audit reports, such as company size and leverage levels. By understanding the factors that influence the delay in audit reports, it is expected to increase the transparency and accountability of the company in the Indonesian capital market.

Limitations

This study has several limitations, including the sample size and the data collection method. Future studies can use a larger sample size and more advanced data collection methods to improve the validity of the results.

Future Research Directions

Future studies can explore the effect of other factors that might affect the delay in audit reports, such as company size and leverage levels. Additionally, future studies can investigate the role of other moderating variables, such as the auditor's experience and the company's industry.

References

[List of references]

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Frequently Asked Questions (FAQs) about the Effect of Tenure Audit and Listering Age on Audit Report Lags with the Specialization of the Auditor Industry as a Moderating Variable in Consumer Goods Companies Listed on the Indonesia Stock Exchange

Q: What is the main objective of this study?

A: The main objective of this study is to explore the effect of the term of office of the audit (tenure audit) and the age of listing on the delay in the audit report (audit report lag) at the consumer goods company listed on the Indonesia Stock Exchange (IDX). Additionally, this study investigates the role of the auditor's industry specialization as a moderating variable.

Q: What are the factors that influence the delay in audit reports?

A: The factors that influence the delay in audit reports include the term of office of the auditor, the age of listing, and the auditor's industry specialization. This study found that the age of listing has a significant positive effect on the delay in the audit report, while the auditor's term does not show a significant effect.

Q: What is the role of the auditor's industry specialization as a moderating variable?

A: The auditor's industry specialization can be a moderating variable that strengthens the relationship between the term of office of the auditor and the delay in the audit report. On the other hand, the specialization of the auditor industry weakens the relationship between the age of listing and the delay of the audit report.

Q: What are the implications of this study for companies?

A: Consumer goods companies need to pay attention to the factors that can affect the delay in audit reports, including the term of office of the auditor, the age of listing, and specialization of the auditor industry.

Q: What are the implications of this study for auditors?

A: Auditors can increase audit efficiency with a focus on specialization in certain fields and build close relationships with clients.

Q: What are the implications of this study for regulators?

A: Regulators can consider issuing policies governing delays in audit reports, for example by setting a maximum time limit for audit settlement.

Q: What are the limitations of this study?

A: This study has several limitations, including the sample size and the data collection method. Future studies can use a larger sample size and more advanced data collection methods to improve the validity of the results.

Q: What are the future research directions?

A: Future studies can explore the effect of other factors that might affect the delay in audit reports, such as company size and leverage levels. Additionally, future studies can investigate the role of other moderating variables, such as the auditor's experience and the company's industry.

Q: What are the practical implications of this study?

A: The practical implications of this study are that companies, auditors, and regulators need to pay attention to the factors that can affect the delay in audit reports. Companies need to ensure that their auditors have the necessary expertise and experience to complete audits efficiently. Auditors need to focus on specialization in certain fields and build close relationships with clients. Regulators need to consider issuing policies governing delays in audit reports.

Q: What are the theoretical implications of this study?

A: The theoretical implications of this study are that it contributes to the understanding of the factors that influence the delay in audit reports. It also highlights the importance of auditor industry specialization as a moderating variable.

Q: What are the policy implications of this study?

A: The policy implications of this study are that it suggests that regulators need to consider issuing policies governing delays in audit reports. It also highlights the need for companies to ensure that their auditors have the necessary expertise and experience to complete audits efficiently.

Q: What are the future research directions in this area?

A: Future research directions in this area include exploring the effect of other factors that might affect the delay in audit reports, such as company size and leverage levels. Additionally, future research can investigate the role of other moderating variables, such as the auditor's experience and the company's industry.

Q: What are the potential applications of this study?

A: The potential applications of this study are that it can be used to inform policy decisions related to audit reports. It can also be used to inform the development of audit standards and guidelines.

Q: What are the potential limitations of this study?

A: The potential limitations of this study are that it is based on a sample of consumer goods companies listed on the IDX. Future studies can use a larger sample size and more advanced data collection methods to improve the validity of the results.

Q: What are the potential future research directions in this area?