The Role of the Audit Committee

Oct 13, 2025 by wbrum.org 2 views

Analysis of the Effect of the Characteristics of the Audit Committee and Audit Opinion on Timeliness (Timeliness) Submission of Financial Statements in Manufacturing Companies in the Various Industrial Sector Sector Registered on the 2013-2015 Indonesia Stock Exchange

Introduction

The timeliness of the delivery of financial statements is a crucial aspect for companies, especially for public companies listed on the Indonesia Stock Exchange (IDX). Late financial statements can have severe consequences, ranging from sanctions from the IDX to loss of investor confidence. This study aims to reveal the influence of the characteristics of the Audit Committee and Audit Opinion on the timeliness of the delivery of financial statements to manufacturing companies in the various industrial sector registered on the IDX for the 2013-2015 period.

Methodology

This study uses a multiple linear regression model with a sample of 23 manufacturing companies selected by purposive sampling. The data used is secondary data processed using SPSS software. The study focuses on the characteristics of the Audit Committee, including the size of the audit committee, the composition of the independent commissioners in the audit committee, the frequency of the audit committee meeting, and the financial expertise of the audit committee members. Additionally, the study examines the effect of the Audit Opinion on the timeliness of the delivery of financial statements.

Results

The results of this study show that the financial expertise of the audit committee and audit opinion partially have a significant influence on the timeliness of the delivery of financial statements. This means that the audit committee with members who have strong financial expertise and the provision of good audit opinion can encourage companies to submit financial statements in a timely manner. However, the size of the audit committee, the composition of the independent commissioners in the audit committee, and the frequency of the audit committee meeting do not show a significant effect on the timeliness of the delivery of financial statements.

Furthermore, the study finds that the combination of factors, including the characteristics of the audit committee and audit opinion, has a significant influence on the timeliness of the delivery of financial statements. This emphasizes the need for companies to pay attention to various factors, not just one factor, in order to ensure the timeliness of the delivery of financial statements.

Deeper Analysis

The results of this study provide several important points that need to be considered:

The Role of the Audit Committee: The audit committee that has members with strong financial expertise plays an important role in encouraging companies to submit financial statements on time. This is because the competent audit committee can conduct more effective supervision of the process of preparing financial statements and ensuring the timeliness of its delivery.
Audit Opinion: A good audit opinion is an indicator of the quality of financial statements. Fair audit opinion without exception shows that financial statements have been prepared in accordance with accounting standards and do not contain material errors. This can increase investor confidence in the company and encourage companies to submit financial statements in a timely manner.
The Importance of a Combination of Factors: This research shows that a combination of factors, including the characteristics of the audit committee and audit opinion, can jointly encourage companies to submit financial statements on time. This emphasizes the need for the company to pay attention to various factors, not just one factor, in order to ensure the timeliness of the delivery of financial statements.

Recommendation

Based on the findings of this study, the following recommendations are made:

Improving the Quality of the Audit Committee: The company needs to pay attention to the quality of the audit committee by selecting members who have strong financial expertise.
Improving the Quality of Audit Opinion: The company needs to work with independent auditors to improve the quality of the audit and get a good audit opinion.
Improvement of Corporate Governance: The company needs to pay attention to good corporate governance, including the role of the Audit Committee, to ensure the timeliness of the delivery of financial statements.

Conclusion

This study made an important contribution to the development of corporate governance in Indonesia, especially in terms of the timeliness of the delivery of financial statements. The results of this study are expected to be a consideration for companies and other stakeholders to improve the quality of corporate governance and the timeliness of the delivery of financial statements in the future.

Limitation

This study has several limitations, including the sample size and the data used. Future studies can improve on these limitations by using a larger sample size and collecting primary data.

Future Research

Future research can build on the findings of this study by examining the effect of other factors on the timeliness of the delivery of financial statements. Additionally, future research can explore the impact of the timeliness of the delivery of financial statements on the performance of companies.

References

[List of references cited in the study]

Appendix

[Appendix materials, including tables, figures, and additional data]
Q&A: Analysis of the Effect of the Characteristics of the Audit Committee and Audit Opinion on Timeliness (Timeliness) Submission of Financial Statements in Manufacturing Companies in the Various Industrial Sector Sector Registered on the 2013-2015 Indonesia Stock Exchange

Q: What is the main objective of this study?

A: The main objective of this study is to reveal the influence of the characteristics of the Audit Committee and Audit Opinion on the timeliness of the delivery of financial statements to manufacturing companies in the various industrial sector registered on the Indonesia Stock Exchange (IDX) for the 2013-2015 period.

Q: What methodology was used in this study?

A: This study uses a multiple linear regression model with a sample of 23 manufacturing companies selected by purposive sampling. The data used is secondary data processed using SPSS software.

Q: What are the characteristics of the Audit Committee that were examined in this study?

A: The characteristics of the Audit Committee that were examined in this study include the size of the audit committee, the composition of the independent commissioners in the audit committee, the frequency of the audit committee meeting, and the financial expertise of the audit committee members.

Q: What is the significance of the financial expertise of the audit committee members?

A: The financial expertise of the audit committee members is significant because it can conduct more effective supervision of the process of preparing financial statements and ensuring the timeliness of its delivery.

Q: What is the role of the audit opinion in the timeliness of the delivery of financial statements?

A: The audit opinion plays an important role in the timeliness of the delivery of financial statements because a good audit opinion is an indicator of the quality of financial statements. Fair audit opinion without exception shows that financial statements have been prepared in accordance with accounting standards and do not contain material errors.

Q: What is the importance of a combination of factors in the timeliness of the delivery of financial statements?

A: The combination of factors, including the characteristics of the audit committee and audit opinion, can jointly encourage companies to submit financial statements on time. This emphasizes the need for companies to pay attention to various factors, not just one factor, in order to ensure the timeliness of the delivery of financial statements.

Q: What are the recommendations for companies based on the findings of this study?

A: The recommendations for companies based on the findings of this study are:

Improving the quality of the audit committee by selecting members who have strong financial expertise.
Improving the quality of audit opinion by working with independent auditors.
Improving corporate governance, including the role of the Audit Committee, to ensure the timeliness of the delivery of financial statements.

Q: What are the limitations of this study?

A: The limitations of this study include the sample size and the data used. Future studies can improve on these limitations by using a larger sample size and collecting primary data.

Q: What are the implications of this study for future research?

A: The implications of this study for future research are that it can build on the findings of this study by examining the effect of other factors on the timeliness of the delivery of financial statements. Additionally, future research can explore the impact of the timeliness of the delivery of financial statements on the performance of companies.

Q: What are the practical implications of this study for companies and other stakeholders?

A: The practical implications of this study for companies and other stakeholders are that it highlights the importance of paying attention to various factors, including the characteristics of the audit committee and audit opinion, in order to ensure the timeliness of the delivery of financial statements. This can lead to improved corporate governance and increased investor confidence in the company.