Audit Committee Characteristics and Financial Reporting Timeliness
DOI:
https://doi.org/10.24036/wra.v14.i2.23Keywords:
Audit Committee, Characteristics, Financial Reporting, TimelinessAbstract
Purpose – This study aims to examine the relationship between audit committee characteristics and the accuracy of financial reporting. The analysis focuses on audit committee size, audit committee meetings, and audit committee members with financial knowledge or experience.
Design/methodology/approach – The study sample consisted of 115 total observations of transportation and logistics companies in Indonesia from 2020 to 2024. Data collection was performed using documentation techniques by gathering secondary data, which includes audit committee characteristics and other financial data required for control variables. This data was obtained from the companies' annual reports, which are accessible through the Indonesia Stock Exchange website and the companies' official websites.
Findings – Regression results indicate that audit committee meetings have an impact on the accuracy of financial reporting. Conversely, audit committee size and audit committee members with financial knowledge or experience show that these variables do not affect the accuracy of financial reporting.
Originality/value – This study provides insight into how various audit committee characteristics contribute to the accuracy of financial reporting. This is based on the important role of audit committees in companies and agency theory, which states the need for monitoring and oversight to minimize conflicts of interest in companies carried out by the audit committee.
Research limitations/implications – Based on the empirical findings, this study acknowledges certain limitations that can serve as considerations for future research. First, future researchers could expand the sample by including other corporate sectors to ensure that the number of observations can be generalized to all listed companies in Indonesia. Second, incorporating additional audit committee characteristics as independent variables could also be explored in future studies. Lastly, future research could integrate other control variables, such as those related to external auditors (e.g., Big 4 audit firms), given that the published financial statements are ultimately audited and verified by external auditors.
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Copyright (c) 2026 Nadia Triwahyuni, Desiyani Rifayani, Faris Windiarti (Author)
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