THE EFFECT OF AUDIT FEES, AUDIT TENURE, AND FINANCIAL DISTRESS ON AUDIT REPORT LAG IN PROPERTY AND REAL ESTATE COMPANIES

Abstract

This study aims to analyze the effect of Audit Fees, Audit Tenure, and Financial Distress on Audit Report Lag based on Agency Theory. This study employs a quantitative research approach using secondary data. The population consists of 92 property and real estate companies listed on the Bursa Efek Indonesia (BEI) during the 2020–2024 period. The sampling technique employed was purposive sampling based on several criteria, resulting in 50 companies as the research sample, with a total of 250 observations. The data were analyzed using panel data regression with EViews 13 software. The results show that Audit Fees, Audit Tenure, and Financial Distress simultaneously affect Audit Report Lag. Partially, Audit Fees and Audit Tenure have a significant negative effect on Audit Report Lag, whereas Financial Distress has no significant effect on Audit Report Lag. Thus, this study reinforces the understanding that audit engagement characteristics, particularly adequate Audit Fees and continuity of Audit Tenure, play a role in supporting the timely completion of audits in the Property and Real Estate sector. Meanwhile, Financial Distress is not a primary factor in determining the length of the audit completion process in the research object.