Readability Laporan Tahunan Dan Audit Delay

The purpose of this study is to examine the effect of readability of annual reports on audit delays. The research period is 2018-2019, with a sample of 1143 companies listed on the Indonesia Stock Exchange. The readability of the annual report is measured by the size of the report file, where the larger the file size of the annual report, the lower the readability of the annual report. Audit delay is measured by the number of days of issuance of the audit report calculated from the end of the fiscal year. The results of this study indicate that readability of annual report has a negative effect on audit delays. This means that the low readability of the annual report affects audit delays. The results of this study support agency theory. There are indications of management's motivation in manipulating the annual report by reducing the readability of the report, making the auditors have to be careful in conducting audits so that they seem to experience delays in issuing audit reports.Penelitian ini bertujuan untuk menguji pengaruh keterbacaan laporan tahunan terhadap audit delay. Periode penelitian 2018-2019, dengan sampel sebanyak 1143 perusahaan yang terdaftar di Bursa Efek Indonesia. Keterbacaan laporan tahunan diukur dari ukuran file laporan, semakin besar ukuran file laporan tahunan maka semakin rendah tingkat keterbacaan laporan tahunan. Audit delay diukur dengan jumlah hari penerbitan laporan audit yang dihitung sejak akhir tahun anggaran. Hasil penelitian ini menunjukkan bahwa keterbacaan laporan tahunan berpengaruh negatif terhadap audit delay. Rendahnya keterbacaan laporan tahunan mempengaruhi audit delay. Hasil penelitian ini mendukung teori keagenan. Adanya indikasi motivasi manajemen dalam memanipulasi laporan tahunan dengan mengurangi keterbacaan laporan, membuat auditor harus berhati-hati dalam melakukan audit sehingga terkesan mengalami keterlambatan dalam mengeluarkan laporan audit.

The association between audit firm attributes and key audit matters readability

Purpose – This study aims to examine the relationship between the attributes of audit firms (Big 4, audit fees, busy season, audit firm tenure and audit partner gender) and the impact of these attributes on key audit matters (KAM) readability in Malaysia. Design/methodology/approach – The auditor's reports and financial data were analysed from a sample of FTSE 100 Malaysia-listed companies for the fiscal years 2017–2019, consisting of 258 observations. Panel regression analyses were conducted to evaluate the possible associations between audit firm attributes and KAM readability. The Flesch reading ease score and Coleman–Liau index were applied to measure KAM readability. Findings – The findings show that female audit partners significantly impact KAM readability; further analysis also revealed that companies audited by Big 4 audit firms and higher audit fees tend to report a more readable KAM disclosure in the FTSE 100 in Malaysia. Originality/value – The regression results provide empirical evidence of the influence of audit firm attributes on KAM readability. This study also examined important corporate governance players, such as external auditors and those charged with governance, who form the audit committee's qualities when analysing the determinants of KAM reporting variations in Malaysia

Reforming the Corporate Governance of Not-for-profit Residential Care Institutions in China

Due to the continuous aging process in China, not-for-profit residential care institutions (NPRIs) account for about half of the service providers in aged care services and are playing an increasingly significant role. However, several NPRIs have been exposed to governance scandals, such as the corruption of senior management; NPRIs using their not-for-profit status as an empty shell to generate profit for illegal distribution; NPRI managers’ unlawful use of government subsidies; and extreme situations such as fraud, crime, and aged abuse cases, which has contributed to the public accountability requirements in this sector. This research, therefore, asks: Can Chinese NPRIs’ existing corporate governance systems fulfill their accountability function? If not, how can they be enhanced to achieve greater accountability to protect the interests of stakeholders? To address the research question, this research developed an accountability framework by analysing the NPRIs should be accountable to whom; accountable for what; and how to improve the accountability. This accountability framework is used in analysing the related legislation and governance documents with four key accountability mechanisms in NPRIs, including the monitoring role of the supervisory board; the evaluation of the related party transactions; the transparency of the annual report; and the public enforcement has taken by regulators. This research identified several potential system flaws and proposes some specific recommendations to enhance the accountability mechanisms. For example, the legislator should value the accountability demands of clients; the legislator should emphasis the formal and functional independence of the supervisory board ; the Regulatory regime should consider regulating related party transactions with due process and directors’ loyalty duty rules; the NPRI practitioner should think of improving the transparency of annual reports to outsiders with higher levels of understandability and accessibility; and regulators should improve the current public enforcement system with more enforcement tools and a greater use of them to respond to the violations appropriately. By implementing the proposed improvements, this research hopes that the current corporate governance system could be more accountable to broader stakeholders of NPRIs, in both substantive and procedural issues, especially to protect the most important and vulnerable stakeholders, aged residents