The Influence of Financial Risk, Characteristics of the Audit Committee, and the Independence of the Board of Commissioners on Audit Report Lag

Abstract

This study aims to analyze the effect of financial risk, the characteristics of the audit committee, and the independence of the board of commissioners on audit report lag. The variables used to test the financial risk are profitability (return on assets) and leverage (debt to assets), while the variables to test the characteristics of the audit committee are the expertise of the audit committee, the number of audit committee meetings, and the size of the audit committee. The population of this study is the manufacturing sector companies listed on the Indonesia Stock Exchange for the period 2018-2020. The research sample used is as many as 132 manufacturing sector companies selected based on the purposive sampling method. The research method used is a quantitative method with panel data regression analysis. The results showed that profitability and the number of audit committee meetings had a significant negative effect on audit report lag, while leverage, audit committee expertise, audit committee size, and the independence of the board of commissioners had no effect on audit report lag.