THE EFFECT OF LEASED ASSET VALUE, AUDIT QUALIFICATION OPINION, AND AUDIT FIRM SIZE ON AUDIT REPORT LAG

Abstract

This study examines the effect of leased asset value, audit opinion, and audit firm size on audit report lag among retail companies listed on the Indonesia Stock Exchange following the adoption of PSAK 116. Using a quantitative approach based on secondary data obtained from annual financial statements, independent auditor reports, and Refinitiv Web Eikon involving 23 listed companies over the 2020–2024, the research is conducted. The findings indicate that leased asset value has a significant effect on audit report lag, with a negative direction, while audit opinion and audit firm size do not exhibit significant effects. These findings imply that leased asset values do not necessarily lead to longer audit completion periods, it improved audit efficiency after the implementation of PSAK 116. This research contributes to empirical audit literature by providing evidence on the relationship between leased assets and audit timeliness in the retail sector within an emerging market setting.