Audit Complexity dan Earning Quality: : Peran Sustainabilty Disclosure dan Audit Tenure

Sulistiawati Sulistiawati; Lia  Uzliawati

doi:10.33395/owner.v10i4.3987

Authors

Sulistiawati
✉ Corresponding author: sulistiawati19883@gmail.com Universitas Sultan Ageng Tirtayasa
Lia Uzliawati Universitas Sultan Ageng Tirtayasa

DOI:

https://doi.org/10.33395/owner.v10i4.3987

Keywords:

Audit Complexity, Earnings Quality, Sustainability Disclosure, Audit Tenure, Energy Sector

Abstract

This study examines the effect of Sustainability Disclosure and Audit Tenure on Earnings Quality, with Audit Complexity as a moderating variable. The study is motivated by the increasing demand for transparent financial reporting and the need to understand the conditions under which sustainability reporting and audit characteristics contribute to improving earnings quality. The research employs a quantitative approach using panel data from 26 energy sector companies listed on the Indonesia Stock Exchange during the 2021–2024 period, resulting in 104 firm-year observations. Data were analyzed using panel data regression with the Random Effect Model selected as the most appropriate estimation model. The findings reveal that Sustainability Disclosure has a positive and significant effect on Earnings Quality, whereas Audit Tenure has no significant effect. Furthermore, Audit Complexity strengthens the positive relationship between Sustainability Disclosure and Earnings Quality, but weakens the relationship between Audit Tenure and Earnings Quality. These findings indicate that the effectiveness of sustainability disclosure in improving earnings quality depends on the level of audit complexity faced by the company. This study contributes to the development of Stakeholder Theory by demonstrating that Audit Complexity acts as a contingency factor influencing the effectiveness of corporate transparency and audit mechanisms in enhancing Earnings Quality. The findings also provide practical implications for management and auditors in improving the credibility of financial reporting, particularly in the energy sector.

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