Impact of Audit Committee Effectiveness on Audit Delay for Listed Commercial Banks in Indonesia

Abstract

One of the objectives of financial reporting is to provide useful accounting information that will assist users in decision making. This information is required to be available within a short period of time from the end of reporting period. Audit committee plays an important role in providing timely accounting information. The purpose of this research is to examine the impact of audit committee effectiveness on audit delay. This research used 482 financial and non-financial firms listed on the Indonesia Stock Exchange (IDX) as samples. Data used in this research are secondary data sourced from annual financial report for companies in Indonesia Stock Exchange. The statistic used in this research is tested using multiple regression analysis. Independent variables in this research are audit committee size, audit committee independence, audit committee meeting and audit committee expertise. The control variables are industry classification, firm size, number of subsidiary, leverage, profitability, audit firm and audit opinion while the dependent variable is audit delay. The result of research shows that audit committee size, audit committee independence, firm size, number of subsidiary, leverage, profitability and audit opinion have significant influence on audit delay. While other variables such as audit committee meeting, audit committee expertise, industry classification and audit firm have insignificant influence on audit delay.



Author Information
Triana, Universitas Gadjah Mada, Indonesia

Paper Information
Conference: ABMC2016
Stream: Business Administration and Business Economics; Marketing; Accounting

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