The Association between Audit Partner Busyness, Audit Partner Tenure, and Audit Efficiency

Abstract

The main purpose of this study is to provide evidence of how audit partner busyness and tenure are associated with audit efficiency. Based on a pooled OLS regression analysis of 232 observations from non-financial companies listed on the Omani capital market between 2013 and 2016, the results reveal no association between partner busyness and audit efficiency-although it does improve audit efficiency for clients of the Big 4 audit firms. Moreover, longer partner tenures are shown to significantly enhance audit efficiency. Given the lack of evidence currently available, this study reinforces the importance of examining audit outcomes at the level of audit partner, providing important insights into audit efficiency for regulators, companies, and auditors. Overall, this study is one of few presenting empirical evidence on the importance of the characteristics of partner incentives in the context of audit efficiency. Contribution/Originality: This study contributes new evidence concerning the association between external audit partners and audit efficiency to the existing literature, being one of the first studies to do so. Consequently, it provides the first evidence of the vital role played by auditors in affecting audit efficiency in MENA.

Industry expertise on audit committee and audit report timeliness

“…Hence, it needs more relevant expertise to support AC effectiveness to improve audit report timeliness. This result is consistent with previous studies (e.g., Baatwah et al, 2019a;Raweh et al, 2021;Salleh et al, 2017;Wan-Hussin & Bamahros, 2013). It also supports the view that the financial or accounting expertise of the AC members is less likely to be adequate to support high-quality financial reports and effective control regimes.…”

“…Research indicates that auditors with industry expertise have a better understanding of the client's business, enabling them to discover mistakes and misrepresentations speedily, especially in complex audit processes than non-industry expertise auditors (Chin & Chi, 2009;Goodwin & Wu, 2014). They perform audit tasks in a short time due to their expertise (Abidin & Ahmad-Zaluki, 2012;Raweh et al, 2021), overall enhance their timely audit reporting ability (Abidin & Ahmad-Zaluki, 2012;Habib & Bhuiyan, 2011;Raweh et al, 2021). These researchers have proven that auditors' industry expertise is associated with audit quality.…”

Kualitas Laporan Keuangan: Apakah Keterlambatan Laporan Audit, Kesibukan Mitra Audit, Karakteristik Direksi Dapat Mempengaruhi?

“…Sibuknya auditor akan berpengaruh pada keterlambatan laporan audit, karena untuk menyelesaikan laporannya auditor perlu menghabiskan waktu yang panjang dan juga akan terpengaruh terhadap waktu yang telah ditentukan untuk menyelesaikannya (Hussin et al, 2018;Singh et al, 2022;Wiedjaja & Eriandani, 2021). Studi Raweh et al (2021) mengemukakan hasil yang berbeda bahwa tidak ada signifikansi antara kesibukan auditor pada keterlambatan laporan audit. Keterlambatan laporan audit terjadi disebabkan karena kesibukan auditor dalam memegang beberapa klien sekaligus dan harus menyelesaikannya dalam waktu yang sama, sehingga untuk menyelesaikan laporan cukup menghabiskan waktu.…”

“…Kesibukan mitra audit adalah sibuknya auditor yang menyebabkan kekurangan waktu untuk mengaudit laporan keuangan tahunan perusahaan yang mengakibatkan turunnya kualitas dari laporan keuangannya (Raweh et al, 2021). Semakin tinggi kesibukan mitra audit berarti mitra audit memiliki klien yang banyak sehingga semakin sibuk dalam menyelesaikan auditnya.…”

“…Semakin tinggi kesibukan mitra audit berarti mitra audit memiliki klien yang banyak sehingga semakin sibuk dalam menyelesaikan auditnya. Kesibukan mitra audit dapat diukur dengan menghitung jumlah klien audit publik yang dipegang oleh masing-masing mitra audit di setiap tahun merujuk pada penelitian sebelumnya (Goodwin & Wu, 2016;Lai et al, 2018;Raweh et al, 2021;Singh et al, 2022;Wiedjaja & Eriandani, 2021).…”