The Effect of Company Policy, Legal Compliance, and Information Technology on Audit Report Accuracy in the Textile Industry in Tangerang
DOI:
https://doi.org/10.58812/wsaf.v2i02.1047Keywords:
Audit Report Accuracy, Company Policy, Information Technology, Legal Compliance, Textile IndustryAbstract
This study investigates the influence of company policy, legal compliance, and information technology on the timeliness of audit report submissions within the textile industry in Tangerang. Using a quantitative approach with Structural Equation Modeling (SEM-PLS), data from a sample of textile companies were analyzed using a Likert scale (1-5). The results reveal significant positive relationships between company policy, information technology, legal compliance, and audit report accuracy. Findings underscore the importance of robust governance frameworks, technological investments, and regulatory adherence in enhancing audit reporting practices. Practical implications include the development of clear policies, strategic IT investments, and rigorous compliance management to improve financial reporting transparency and operational efficiency.
References
H. Hendi and R. Sitorus, “An Empirical Research on Audit Report Timeliness,” J. Akunt. dan Keuang., vol. 25, no. 1, pp. 39–53, 2023.
D. Bagaskara, Petrol, and Hera, “PENGARUH UKURAN PERUSAHAAN, KUALITAS AUDIT DAN UKURAN PERUSAHAAN TERHADAP AUDIT REPORT LAG PADA PERUSAHAAN SEKTOR KESEHATAN (HEALTCARE) YANG TERDAFTAR DI BURSA EFEK INDONESIA PADA TAHUN 2018-2020,” TRANSEKONOMIKA AKUNTANSI, BISNIS DAN Keuang., vol. 3, pp. 626–644, Jul. 2023, doi: 10.55047/transekonomika.v3i3.442.
N. A. R. Perdana, M. Muslih, and W. A. Inawati, “Analysis of non-financial factors on timeliness of financial statement submission (study of consumer cyclical companies listed on Indonesia Stock Exchange 2016-2020),” in 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management, Johor Bahru, Malaysia, 2022, pp. 1746–1755.
M. Majidah and I. Aisah, “Faktor Diterminan Penyampaian Laporan Keuangan,” Own. Ris. dan J. Akunt., vol. 7, no. 3, pp. 2098–2111, 2023.
D. A. Maharani and P. R. D. Redjo, “Corporate Governance Factors On Audit Report Lag,” JAS (Jurnal Akunt. Syariah), vol. 7, no. 1, pp. 58–72, 2023.
O. Budko and A. Shepel, “FEATURES OF THE AUDIT OF THE COMPANY’S ACCOUNTING POLICY,” Econ. Bull. Dnipr. STATE Tech. Univ., pp. 67–74, Jan. 2023, doi: 10.31319/2709-2879.2022iss2(5).271093pp67-74.
D. Rajasekar and G. A. Magdaraog Jr, “Impact of Corporate Governance Policies in Maintaining Internal and External Financial Policies of the Firms”.
P. Yadav, S. Tiwari, P. Kumari, and S. Mittal, “Business Policies and Practices for Ensuring Data Security: An Exploratory Study,” J. IoT Secur. Smart Technol., vol. 2, pp. 9–14, Feb. 2023, doi: 10.46610/JISST.2023.v02i01.002.
M. Plakhotnikova, A. Anisimov, A. Kashirtseva, and M. Suslova, “Finance Policy of the Company Based on Adapted System of Assessment within the Frames of Strategic Management,” Vestn. Plekhanov Russ. Univ. Econ., vol. 20, pp. 55–66, Apr. 2023, doi: 10.21686/2413-2829-2023-2-55-66.
V. Rumyantseva, “Strategic importance of corporate accounting policies,” Accounting. Anal. Audit., vol. 9, pp. 87–94, Oct. 2022, doi: 10.26794/2408-9303-2022-9-4-87-94.
T. Q. Thinh, D. A. Tuan, and L. C. Danh, “TESTING THE INFLuENCE OF FACTORS ON THE TIMELINESS OF FINANCIAL REPORTING–EMPIRICAL EVIDENCE OF VIETNAMESE LISTED ENTERPRISES,” Innovations, vol. 19, no. 4, pp. 285–293, 2022.
M. Setiyowati and I. Januarti, “Analysis of Influencing Factors Affecting Audit Report Lag,” J. ASET (Akuntansi Riset), vol. 14, no. 2, pp. 235–244, 2022.
M. Eulerich, A. Masli, J. Pickerd, and D. A. Wood, “The impact of audit technology on audit task outcomes: Evidence for technology‐based audit techniques,” Contemp. Account. Res., vol. 40, no. 2, pp. 981–1012, 2023.
A. C. Crucean and C.-D. Hategan, “Impact of Information Technology on Audit Quality: European Listed Companies’ Evidence,” in Contemporary Studies of Risks in Emerging Technology, Part B, Emerald Publishing Limited, 2023, pp. 327–339.
R. P. D. Chauhan, “Transforming auditing practices: Unravelling the challenges and opportunities of technology,” Int. J. Foreign Trade Int. Bus., vol. 5, no. 1, pp. 36–39, 2023.
B.-J. Butijn, “Introduction to Advanced Information Technology,” Adv. Digit. Audit., p. 15, 2023.
A. Leahovcenco, “Peculiarities of information management sistem at audit entities,” in 30 years of economic reforms in the Republic of Moldova: economic progress via innovation and competitiveness, 2022, pp. 174–178.
P. V and K. Natarajan, “A STUDY ON THE PERFOMRANCE OF HR POLICIES AND ITS IMPLEMENTATION,” May 2021.
L. V Chyzhevska, I. R. Polishchuk, and S. S. Sarhan, “Accounting policy as a tool for management of the financial results of the enterprise,” Probl. Theory Methodol. Accounting, Control Anal., pp. 34–40, Feb. 2023, doi: 10.26642/pbo-2022-3(53)-34-40.
G. MAZUR, D. MAZUR, and O. MAZUR, “INTERPRETATION, GOALS AND MAIN TASKS OF THE PERSONNEL POLICY OF THE ENTERPRISE,” Her. Khmelnytskyi Natl. Univ. Econ. Sci., vol. 312, pp. 178–183, Dec. 2022, doi: 10.31891/2307-5740-2022-312-6(1)-26.
S. Sheludko, “Sources of Legal Regulation of Compliance in Ukrainian Banks,” Law Innov., pp. 34–40, Jun. 2023, doi: 10.37772/2518-1718-2023-2(42)-4.
A. Sharma, V. Gamta, and G. Luthra, “Ensuring Patient Safety and Trust: The Critical Importance of Regulatory Compliance in Healthcare,” J. Pharm. Res. Int., vol. 35, no. 18, pp. 1–15, 2023.
L. A. A. Rodrigues, “The Importance of Compliance as a Tool to Combat Cybercrime,” J. Law Corrupt. Rev., vol. 5, no. 00, p. e048, 2023.
P. A. R. Barbosa, “Compliance and its contributions to safety at work,” Ius Novum, vol. 17, no. 3 ENG, pp. 47–56, 2023.
A. Sharma, V. Gamta, and G. Luthra, “Regulatory Compliance in the United States: A Comprehensive Analysis of USFDA Guidelines and Implementation Strategies,” J. Pharm. Res. Int., vol. 35, no. 17, pp. 41–50, 2023.
O. Almaliki, “The Role of Computerized Accounting Advanced Information Systems in The Efficiency and Effectiveness of Internal Audit,” Int. Acad. J. Account. Financ. Manag., vol. 10, pp. 111–118, Jun. 2023, doi: 10.9756/IAJAFM/V10I1/IAJAFM1012.
C. A. Merkle, P. B. Cortez, C. A. Merkle, P. B. Cortez, and W. C. Jeffrey, “Influence of Accounting Information System on Decision Making Process in Audit Firms in USA,” J. Financ. Account., vol. 6, no. 4, pp. 15–24, 2022, doi: 10.53819/81018102t50106.
B. Z. Ramaj and E. Pjero, “The Implementation of Accounting Information Systems for its Role in Marketing and Management Processes,” Eur. J. Mark. Econ., vol. 6, no. 1, pp. 28–38, 2023.
K. Valeri, F. G. Dewi, and S. I. O. Sembiring, “Information Technology and Accounting Information System Role in The Decision-Making Process for Management (Case Study at Municipal Waterworks Way Rilau, Municipal Waterworks Pesawaran And Municipal Waterworks Way Sekampung),” Int. J. Res. Publ. Rev., vol. 3, no. 8, pp. 2048–2053, 2022.
B. Subiyanto, “The Influence of Independence, Due Professional Care, and Its Influence on Audit Quality,” in 2nd Annual Conference on blended learning, educational technology and Innovation (ACBLETI 2020), Atlantis Press, 2021, pp. 520–524.
S. Chandani and N. Ahmed, “The effect of corporate governance and financial leverage on efficiency of Pakistan textile sector,” Indep. J. Manag. Prod., vol. 12, no. 1, pp. 201–218, 2021.
B. D. Nugraheni and C. Martono, “Analisis Penerapan Tata Kelola Korporat Pada Industri Produk Tekstil Kecil dan Menengah di Pekalongan,” J. Akunt. Kontemporer, vol. 12, no. 2, pp. 54–67, 2020.
I. Darji and S. Dahiya, “Measuring operational efficiency of the textile industry using DEA technique: a study of the northern state of India,” Meas. Bus. Excell., vol. 27, Apr. 2023, doi: 10.1108/MBE-10-2022-0124.
A. Ahmad, K. Jamil, R. F. Gul, A. Anwar, and S. Yasmin, “Evaluation of Factors Influencing Organizational Effectiveness of Textile Exporting Firms,” Sukkur IBA J. Manag. Bus., vol. 9, no. 1, pp. 61–73, 2022.
J. H. L’Abée‐Lund, G. S. Braut, and J. E. Brittain, “Compliance with water resource regulation: A mixed‐method study of the effects of regulatory audits,” River Res. Appl., 2022.
P. Kldiashvili, “ASSESSMENT OF THE COMPLIANCE OF THE NATIONAL LEGISLATION OF CORPORATE REPORTING SYSTEM WITH THE REQUIREMENTS OF THE EUROPEAN DIRECTIVES,” Econ. Profile, vol. 17, pp. 48–57, Dec. 2022, doi: 10.52244/ep.2022.24.15.
A. F. Younis and S. M. Ali, “The Effect of Organizational Compliance on High Performance: An Analytical Research in the General Company of Leather Industries/Cotton Factor,” J. Econ. Adm. Sci., vol. 29, no. 136, pp. 16–26, 2023.
A. Karmańska, “Artificial Intelligence in audit,” Pr. Nauk. Uniw. Ekon. we Wrocławiu, vol. 66, pp. 87–99, Jan. 2022, doi: 10.15611/pn.2022.4.06.
N. F. Mohd Noor, Z. Mohd Sanusi, R. J. Johari, A. A. Saad Al-Dhubaibi, A. Hudayati, and N. Abdul Razak, “An examination of the utilization of audit technology in influencing audit job performance,” Asian-Pacific Manag. Account. J., vol. 17, no. 1, pp. 283–309, 2022.
M. Eulerich, J. Pawlowski, N. J. Waddoups, and D. A. Wood, “A framework for using robotic process automation for audit tasks,” Contemp. Account. Res., vol. 39, no. 1, pp. 691–720, 2022.
M. Spiler, D. Milosevic, M. Miskic, L. Gostimirovic, M. Beslac, and B. Jevtic, “Investments in digital technology advances in textiles,” Ind. Textila, vol. 74, no. 1, pp. 90–97, 2023.
A. Abernathy, “A Case for Audit Automation: Evidence from Auditing Literature and an Internship During the Pandemic,” J. Student Res., vol. 11, no. 1, 2022.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Loso Judijanto, Denari Dhahana Edtiyarsih
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
+62 821 1557 5700 
info@westscience-press.com 