The Effect of Audit Report Lag, Regulation, Audit Fee Stickiness on Audit Quality with Economic Failure as a Moderating Variable

Abstract

The purpose of this study was to test empirically the effect of audit report lag, regulation and audit fee stickiness on audit quality. The population used in this study are property and real estate companies listed on the Indonesia Stock Exchange in 2019-2021. The research sample was determined using purposive sampling method. Samples that meet the criteria are 31 companies with a total of 93 units of analysis. The type of data used is secondary data. The data analysis method used in this research is descriptive analysis and Moderated Regression Analysis.The results of this study indicate that audit report lag has a significant negative effect on audit quality, regulation has a significant positive effect on audit quality and audit fee rigidity has no effect on audit quality. Judging from the interaction effect, economic failure has no influence in moderating the variables of audit report lag, regulation and audit fee rigidity on audit quality. Further research is suggested to calculate the upward and downward movement of audit fees because in this study audit fee stickiness does not affect audit quality. Subsequent research can also replace the regulatory proxies used and use other company sectors and add years of research.