The Effect of Corporate Sustainability Report, Good Corporate Governance, Audit Quality to Audit Report Lag
Francisca Reni Retno Anggraini (a*), Yusef Widya Karsana (b)

a) & b) Universitas Sanata Dharma
Jl. Affandi, Mrican, Caturtunggal, Depok, Sleman, DIY 55281
*reni[at]usd.ac.id

Abstract

Audit Report Lag is often linked to the auditor^s lack of confidence in the financial statements prepared by the company. This situation causes the auditor to expand the scope of their examination to ensure they can provide a well-founded opinion, thereby maintaining their professionalism. This study aims to test legitimacy theory and institutional theory regarding the phenomenon of audit report lag. It does so by examining the impact of corporate social responsibility (CSR) reports and corporate governance mechanisms on the delay in auditor report submission.
This empirical research uses secondary data obtained from the 2022 annual reports of publicly listed companies on the Indonesia Stock Exchange. A total of 118 companies with complete data were analyzed to measure the variables in this study.
The results show that corporate social responsibility negatively affects audit report lag, while foreign ownership has a positive effect on audit report lag. The study also reveals that the more information disclosed in CSR reports, the shorter the delay in auditor reports for companies audited by the Big 4 public accounting firms, compared to those not audited by the Big 4. Moreover, the greater the foreign ownership, the longer the delay, and this effect is more significant for companies audited by the Big 4 than for those not audited by the Big 4.
The implication of this study is that legitimacy theory and institutional theory can be used to explain auditor professionalism, as evidenced by their caution in issuing audit opinions.

Keywords: audit report delay- corporate governance- social responsibility- Big 4

Topic: Audit