Audit Committee, Contigency Factors, and Audit Report Lag: Evidance from Mining Company in Indonesian Stock Exchange

Abstract

This study is to examine the effect of audit committee and the company's contingency on audit report lag and test the moderation effect of the contingency variable on the influence of the audit committee on audit report lag. The sample of this studyare mining companies listed on the Indonesia Stock Exchange during the year 2013-2015. The number of observations made is 84 cases. This research uses variance-based structural equation model (SEM-PLS). The period of audit report lag that occurred in mining companies listed on the Indonesia Stock Exchange based on the results of research is between 17 days to 273 days. The result shows that audit committee and contingency company influence to audit report lag. The results show that audit committees have negative effects on audit report lag, while contingency factors have a positive effect on audit report lag. The results also show that the contingency variable of the company has a moderation effect on the influence of the audit committee on audit report lag.

Keywords: audit report lag, audit committee, contingency factors