The Effect of Profitability, Public Accounting Firm Reputation, and Firm Size on Audit Report Lag: Evidence from Property and Real Estate Companies Listed on the Indonesia Stock Exchange (2022-2025)

Shafira Najwa Endri; Karlina Aprilia Kusumadewi; Imam Ghozal

doi:10.55927/eajmr.v5i8.283

Authors

Shafira Najwa Endri Universitas Diponegoro, Semarang
Karlina Aprilia Kusumadewi Universitas Diponegoro
Imam Ghozal Universitas Diponegoro

DOI:

https://doi.org/10.55927/eajmr.v5i8.283

Keywords:

audit report lag, profitability, return on assets auditor reputation, Big Four

Abstract

This study examines the effect of profitability, public accounting firm (Kantor Akuntan Publik/KAP) reputation, and firm size on audit report lag (ARL) among property and real estate companies listed on the Indonesia Stock Exchange (IDX) between 2022 and 2025. Using purposive sampling, 40 companies were selected, yielding 160 firm-year observations that were analyzed with panel data regression. The findings are interpreted through agency theory and signalling theory and suggest that higher profitability and the use of a Big Four auditor are associated with a longer, rather than a shorter, audit process plausibly because both attract more extensive audit scrutiny whereas larger firms benefit from stronger internal controls, greater resources, and closer external monitoring that shorten audit completion time.

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