The characteristics of the audit committee affecting timeliness of the audit report in Indonesia

This paper aims to examine the positive relationship between the audit committee (AC) and the reporting quality proxied by the reporting timeliness in the Indonesian context. The AC effectiveness is measured by the committee size, number of its expertise or competence, and its meeting frequency. Thi...

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Autores principales:	Efrizal Syofyan, Dovi Septiari, Sany Dwita, Mutia Rahmi
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	audit committee effectiveness size expertise meeting frequency report quality corporate governance Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/799831a0f32c4f64a13f7e80703ae694
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spelling	oai:doaj.org-article:799831a0f32c4f64a13f7e80703ae6942021-12-02T18:31:21ZThe characteristics of the audit committee affecting timeliness of the audit report in Indonesia2331-197510.1080/23311975.2021.1935183https://doaj.org/article/799831a0f32c4f64a13f7e80703ae6942021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2021.1935183https://doaj.org/toc/2331-1975This paper aims to examine the positive relationship between the audit committee (AC) and the reporting quality proxied by the reporting timeliness in the Indonesian context. The AC effectiveness is measured by the committee size, number of its expertise or competence, and its meeting frequency. This study employs 240 observations from 48 manufacturing companies from 2014 to 2019 in the Indonesian Stock Exchange (IDX) as samples. A logit regression analysis is used to test the hypotheses in this study. The findings reveal that the AC size and financial expertise are not significantly associated with the audit report timeliness, whereas the meeting frequency has a significant effect on it. The results indicate that the AC effectiveness depends on the occurrence of communication between members. The more frequent the AC meets, the more effective their communication will be. This study findings also suggest that the number of the AC meetings is crucial in ensuring its oversight roles in companies, leading to timely submission of audited financial statements. The findings provide significant contributions to the existing literature on corporate governance (CG), especially the AC effectiveness in emerging economies. This study fills research gaps on the AC effectiveness and provides practical implications concerning the AC oversight of financial reporting. Despite results made by studies on the AC in developed economies such as the US and UK, conditions and factors affecting the AC effectiveness in developing countries such as Indonesia may differ. Hence, the findings of these studies may not apply to other contextual environments.Efrizal SyofyanDovi SeptiariSany DwitaMutia RahmiTaylor & Francis Grouparticleaudit committee effectivenesssizeexpertisemeeting frequencyreport qualitycorporate governanceBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 8, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	audit committee effectiveness size expertise meeting frequency report quality corporate governance Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	audit committee effectiveness size expertise meeting frequency report quality corporate governance Business HF5001-6182 Management. Industrial management HD28-70 Efrizal Syofyan Dovi Septiari Sany Dwita Mutia Rahmi The characteristics of the audit committee affecting timeliness of the audit report in Indonesia
description	This paper aims to examine the positive relationship between the audit committee (AC) and the reporting quality proxied by the reporting timeliness in the Indonesian context. The AC effectiveness is measured by the committee size, number of its expertise or competence, and its meeting frequency. This study employs 240 observations from 48 manufacturing companies from 2014 to 2019 in the Indonesian Stock Exchange (IDX) as samples. A logit regression analysis is used to test the hypotheses in this study. The findings reveal that the AC size and financial expertise are not significantly associated with the audit report timeliness, whereas the meeting frequency has a significant effect on it. The results indicate that the AC effectiveness depends on the occurrence of communication between members. The more frequent the AC meets, the more effective their communication will be. This study findings also suggest that the number of the AC meetings is crucial in ensuring its oversight roles in companies, leading to timely submission of audited financial statements. The findings provide significant contributions to the existing literature on corporate governance (CG), especially the AC effectiveness in emerging economies. This study fills research gaps on the AC effectiveness and provides practical implications concerning the AC oversight of financial reporting. Despite results made by studies on the AC in developed economies such as the US and UK, conditions and factors affecting the AC effectiveness in developing countries such as Indonesia may differ. Hence, the findings of these studies may not apply to other contextual environments.
format	article
author	Efrizal Syofyan Dovi Septiari Sany Dwita Mutia Rahmi
author_facet	Efrizal Syofyan Dovi Septiari Sany Dwita Mutia Rahmi
author_sort	Efrizal Syofyan
title	The characteristics of the audit committee affecting timeliness of the audit report in Indonesia
title_short	The characteristics of the audit committee affecting timeliness of the audit report in Indonesia
title_full	The characteristics of the audit committee affecting timeliness of the audit report in Indonesia
title_fullStr	The characteristics of the audit committee affecting timeliness of the audit report in Indonesia
title_full_unstemmed	The characteristics of the audit committee affecting timeliness of the audit report in Indonesia
title_sort	characteristics of the audit committee affecting timeliness of the audit report in indonesia
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/799831a0f32c4f64a13f7e80703ae694
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The characteristics of the audit committee affecting timeliness of the audit report in Indonesia

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