The effect of bank size and bank age on audit report lag with audit firm size as a moderating variable
DOI:
https://doi.org/10.53088/jadfi.v6i1.2619Keywords:
Audit Firm Size, Audit Report Lag, Bank Age, Bank SizeAbstract
Despite regulations aimed at improving the timeliness of financial reporting in the Indonesian banking sector, audit report delays persist at several banks. This indicates a gap between regulatory expectations and actual reporting practices, highlighting the need to examine the factors influencing audit report lag. This study examines the effect of bank size and bank age on audit report lag (AudRL) in the Indonesian banking sector for 2022–2024, with audit firm size as a moderating variable. The total sample in this study is 141. Using a quantitative approach and Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis, data were obtained from annual reports of banks listed on the Indonesia Stock Exchange. The results indicate that both bank size and bank age have significant negative effects on AudRL, suggesting that larger and more mature banks tend to complete audits faster due to stronger internal control systems, experienced personnel, and well-established reporting processes. However, the moderating effect of Audit Firm Size is insignificant, implying that the reputation or scale of external auditors does not substantially influence the relationship between bank characteristics and audit timeliness. These findings contribute to the literature on financial reporting timeliness and provide practical implications for regulators, auditors, and bank management to enhance the efficiency and reliability of audited financial statements in Indonesia.
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