THE EFFECT OF PAF REPUTATION, AUDIT TENURE, AND AUDITOR INDUSTRY SPECIALIZATION ON AUDIT REPORT LAG IN MANUFACTURING COMPANIES

ABSTRACT

Audit report lag is the difference in days between December 31 and the audited report date. Delays in financial reporting make it difficult for investors to make investment decisions. This study aims to analyze the influence of public accounting firm (PAF) reputation, audit tenure, and auditor industry specialization on audit report lag. The research refers to the Financial Services Authority (OJK) Regulation No. 14/POJK.04/2022 concerning the Submission of Periodic Financial Reports by Issuers or Public Companies. The population of this study consists of food and beverage sub- sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2023 period, with a total sample of 71 companies. The sampling method used is purposive sampling based on specific criteria. The data used are secondary data obtained from the companies’ annual reports. This study employs a quantitative approach using panel data regression analysis to examine the relationship between the independent and dependent variables. The results show that PAF reputation and audit tenure have a negative effect on audit report lag. This implies that the higher the reputation of the PAF and the longer the audit tenure, the shorter the delay in the issuance of the audit report. However, auditor industry specialization does not have a significant effect on audit report lag. This study suggests that future research should consider additional variables such as profitability, firm size, and operational complexity, and extend the scope to other manufacturing sectors.

Keywords : PAF Reputation, Audit Tenure, Auditor Industry Specialization, Audit Report Lag