IDEAS home Printed from https://ideas.repec.org/a/bas/econst/y2026i4p158-175.html

Audit Report Lag in Indonesia: Evidence from Listed Firms with High and Low Audit Committee Experience

Author

Listed:
  • Dirvi Surya Abbas
  • Raesita Bella

Abstract

This study examines the effects of Key Audit Matters, company operational complexity, audit committee gender, audit committee financial expertise, and audit committee work experience on audit report lag among Indonesian listed firms. Employing panel data regression analysis on 480 firm-year observations from consumer non-cyclicals, property, and real estate sectors listed on the Indonesia Stock Exchange during 2022–2024, the study adopts a situational approach by comparing firms with high versus low audit committee work experience. Results indicate that Key Audit Matters and audit committee work experience statistically significant negative effects on audit report lag in the full sample and low-experience subgroup, suggesting enhanced audit transparency and governance experience accelerate audit completion. Notably, audit committee financial expertise significantly reduces audit report lag only among high-experience firms, highlighting the synergistic role of accumulated expertise in leveraging financial literacy. Conversely, company operational complexity and audit committee gender demonstrate no consistent impact. These findings underscore the complementary interaction between audit transparency and governance capability in enhancing audit efficiency within emerging markets.

Suggested Citation

  • Dirvi Surya Abbas & Raesita Bella, 2026. "Audit Report Lag in Indonesia: Evidence from Listed Firms with High and Low Audit Committee Experience," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 158-175.
    • Handle: RePEc:bas:econst:y:2026:i:4:p:158-175
    as

    Download full text from publisher

    File URL: http://archive.econ-studies.iki.bas.bg/2026/2026_04/2026_04_09.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Adams, Renée B. & Ferreira, Daniel, 2009. "Women in the boardroom and their impact on governance and performance," Journal of Financial Economics, Elsevier, vol. 94(2), pages 291-309, November.
    2. DeZoort, F. Todd & Hermanson, Dana R. & Houston, Richard W., 2003. "Audit committee support for auditors: The effects of materiality justification and accounting precision," Journal of Accounting and Public Policy, Elsevier, vol. 22(2), pages 175-199.
    3. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    4. repec:eme:maj000:maj-11-2019-2464 is not listed on IDEAS
    5. Habib, Ahsan & Bhuiyan, Md. Borhan Uddin, 2011. "Audit firm industry specialization and the audit report lag," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 20(1), pages 32-44.
    6. Ayşegül Ciğer & Bülent Kınay & Murat Ocak, 2025. "Further evidence regarding the effect of KAMs on audit report lag," PLOS ONE, Public Library of Science, vol. 20(3), pages 1-26, March.
    7. Mohamed Abdel Aziz Hegazy & Noha Mahmoud Kamareldawla, 2021. "Key audit matters: did IAASB unravel the knots of confusion in audit reports decisions?," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 36(8), pages 1025-1052, September.
    8. Gull, Ammar Ali & Nekhili, Mehdi & Nagati, Haithem & Chtioui, Tawhid, 2018. "Beyond gender diversity: How specific attributes of female directors affect earnings management," The British Accounting Review, Elsevier, vol. 50(3), pages 255-274.
    9. Jensen, Michael C. & Meckling, William H., 2008. "Theory of the firm: managerial behavior, agency costs and ownership structure," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 48(2), April.
    10. Gopal V. Krishnan & Gnanakumar Visvanathan, 2008. "Does the SOX Definition of an Accounting Expert Matter? The Association between Audit Committee Directors' Accounting Expertise and Accounting Conservatism," Contemporary Accounting Research, John Wiley & Sons, vol. 25(3), pages 827-858, September.
    11. Dezoort, F. T., 1998. "An analysis of experience effects on audit committee members' oversight judgments," Accounting, Organizations and Society, Elsevier, vol. 23(1), pages 1-21, January.
    12. Habib, Ahsan, 2011. "Audit firm industry specialization and audit outcomes: Insights from academic literature," Research in Accounting Regulation, Elsevier, vol. 23(2), pages 114-129.
    13. repec:hal:journl:hal-02312045 is not listed on IDEAS
    14. Ashton, Rh & Willingham, Jj & Elliott, Rk, 1987. "An Empirical-Analysis Of Audit Delay," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 25(2), pages 275-292.
    15. Md. Mustafizur Rahaman & Md. Borhan Uddin Bhuiyan, 2025. "Audit report lag and key audit matters in Australia," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 22(2), pages 532-554, June.
    16. Zalata, Alaa Mansour & Tauringana, Venancio & Tingbani, Ishmael, 2018. "Audit committee financial expertise, gender, and earnings management: Does gender of the financial expert matter?," International Review of Financial Analysis, Elsevier, vol. 55(C), pages 170-183.
    17. Craig McLaughlin & Stephen Armstrong & Maha W. Moustafa & Ahmed A. Elamer, 2021. "Audit committee diversity and corporate scandals: evidence from the UK," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 29(5), pages 734-763, October.
    18. David A. Carter & Betty J. Simkins & W. Gary Simpson, 2003. "Corporate Governance, Board Diversity, and Firm Value," The Financial Review, Eastern Finance Association, vol. 38(1), pages 33-53, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Neji Al-Eid Omri & Abdulhameed Mohanna Alfaleh, 2024. "The effects of boardroom gender diversity on corporate performance: empirical evidence from a sample of European listed companies," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 59(2), pages 86-100, April.
    2. Bilal & Francisca Ezeani & Muhammad Usman & Bushra Komal & Ali Meftah Gerged, 2025. "Impact of ownership structure and cross‐listing on the role of female audit committee financial experts in mitigating earnings management," Business Ethics, the Environment & Responsibility, John Wiley & Sons, Ltd., vol. 34(4), pages 1171-1187, October.
    3. Abbasi, Kaleemullah & Alam, Ashraful & Bhuiyan, Md. Borhan Uddin, 2020. "Audit committees, female directors and the types of female and male financial experts: Further evidence," Journal of Business Research, Elsevier, vol. 114(C), pages 186-197.
    4. Farooq, Muhammad Umar & Gyapong, Ernest & Gull, Ammar Ali & Usman, Muhammad & Javed, Muzhar & Tawiah, Vincent, 2025. "Do women directors influence CEO performance-induced turnover in China?," Journal of Business Research, Elsevier, vol. 186(C).
    5. Maria Fátima Ribeiro Borges & Graça Maria do Carmo Azevedo & Jonas Oliveira, 2025. "Literature review on gender diversity in top management teams of companies and its relationship with firm performance and audit quality," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 22(1), pages 177-201, March.
    6. Hussain Muhammad & Stefania Migliori & Daniela Di Berardino, 2025. "CSR as a catalyst: Examining the effects of board gender diversity on earnings management," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(1), pages 963-983, January.
    7. Astami, Emita & Pramono, Agus Joko & Rusmin, Rusmin & Cahaya, Fitra Roman & Soobaroyen, Teerooven, 2024. "Do family ownership and supervisory board characteristics influence audit report lag? A view from a two-tier board context," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 56(C).
    8. Abernathy, John L. & Beyer, Brooke & Masli, Adi & Stefaniak, Chad, 2014. "The association between characteristics of audit committee accounting experts, audit committee chairs, and financial reporting timeliness," Advances in accounting, Elsevier, vol. 30(2), pages 283-297.
    9. Souha Ben Gamra & Fadhila Hamza & Hela Borgi, 2022. "The Impact of IFRS Adoption and Corporate Governance Mechanisms on Audit Report Lag: Evidence from An Emerging Country," Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 21(4), pages 604-630, December.
    10. Khushboo Gulati & Seema Gupta & C. P. Gupta, 2020. "The Transformation of Governance System: A Decade Long Experience of Corporate Governance Using Meta-analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 233-262, September.
    11. Saha Rupjyoti & Kabra Kailash Chandra, 2019. "Does corporate governance influence firm performance? Evidence from India," Economics and Business Review, Sciendo, vol. 5(4), pages 70-89, December.
    12. Rey Dang & Anne Françoise Bender & Marie José Scotto, 2014. "Women on French Corporate Board of Directors: How Do They Differ from their Male Counterparts?," Working Papers 2014-54, Department of Research, Ipag Business School.
    13. Haroon ur Rashid Khan & Waqas Bin Khidmat & Muhammad Danish Habib & Sadia Awan, 2022. "Academic directors in board and corporate expropriation: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(2), pages 372-397, March.
    14. Ayad Ahmed Mohammed Al-Qublani & Hasnah Kamardin & Rohami Shafie, 2020. "Audit Committee Chair Attributes and Audit Report Lag in an Emerging Market," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 475-492, July.
    15. Aitzaz Ahsan Alias Sarang & Nicolas Aubert & Xavier Hollandts, 2024. "Board gender diversity and the cost of equity: What difference does gender quota legislation make?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 2193-2213, April.
    16. Shahab, Yasir & Ntim, Collins G. & Ullah, Farid & Yugang, Chen & Ye, Zhiwei, 2020. "CEO power and stock price crash risk in China: Do female directors' critical mass and ownership structure matter?," International Review of Financial Analysis, Elsevier, vol. 68(C).
    17. Emmanuel Mensah & Christopher Boachie, 2023. "Corporate governance mechanisms and earnings management: The moderating role of female directors," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2167290-216, December.
    18. Nguyen, Thi Hong Hanh & Ntim, Collins G. & Malagila, John K., 2020. "Women on corporate boards and corporate financial and non-financial performance: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 71(C).
    19. Franco Ernesto Rubino & Paolo Tenuta & Domenico Rocco Cambrea, 2017. "Board characteristics effects on performance in family and non-family business: a multi-theoretical approach," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(3), pages 623-658, September.
    20. Suha Alawi, 2024. "The Role of Corporate Social Responsibility, Ownership Structure, and Gender Diversity in Firm Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 14(2), pages 97-110, March.

    More about this item

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2026:i:4:p:158-175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Diana Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/ikbasbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.