Abstract: Audit report lag is the time span of completion of an audit conducted by the auditor which is calculated from the close of the company's books to the date stated on the independent auditor's report. This study aims to examine the reputation of public accounting firm as a moderating effect of auditor switching and auditor industry specialization on audit report lag. Mining companies listed on the Indonesia Stock Exchange in 2014-2018 were chosen as the location or scope of the study, using 35 companies as samples determined through the purposive sampling method. The research data is secondary data and obtained by non-participant observation methods. The data analysis technique used is the Moderated Regression Analysis (MRA) test. The results showed that auditor industry specialization had a negative effect on audit report lag while auditor switching had no effect on audit report lag. Reputation of public accounting firm is able to strengthen the influence of auditor industry specialization so that audit report lag becomes shorter. Reputation of public accounting firm is not able to moderate the effect of auditor switching on audit report lag.
Keywords: audit report lag, auditor switching, auditor industry specialization, reputation of public accounting firm.
Title: Reputation of public accounting firm as a moderating effect of Auditor Switching and Auditor Industry Specialization on Audit Report Lag
Author: N.L.Ketut Sugi Lestari, I D.G. Dharma Suputra, I Made Mertha, Ketut Muliartha RM
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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