Purpose–The purpose of this paper is to examine and analyze the factors that affect an auditor’s efficiencyin completing the audit process proxied by audit report lag. The factors used in this study are selected bylooking at the characteristics of the company and the characteristics of an auditor.

Design/methodology/approach–Company characteristics were proxied by the audit committeeeffectiveness, financial condition, accounting complexity and profitability, whereas auditor characteristicswere proxied with auditor reputation, audit tenure and auditors industry specialization. Populations of thisstudy were all manufacturing companies listed in Indonesian Stock Exchange in 2014–2016. Based on thepurposive sampling method, the number of samples obtained from 231 companies was 77. Multiple linearregression method was used to analyze this study. Hypothesis testing was done by statisticalt-test (partial).

Findings–The results showed that partially variables of the audit committee effectiveness and profitabilityhad a significant negative effect on audit report lag while the variable financial condition had a significantpositive effect on audit report lag. Meanwhile, variables of the accounting complexity, auditor reputation,audit tenure and auditors’industry specialization did not show significant influence on audit report lag.

Originality/value–This study tests both company’s and auditor’s characteristic on audit report lag that asfar as authors know never been tested simultaneously.

KeywordsAudit committee effectiveness, Accounting complexity, Auditors characteristics,Financial condition, Firms characteristics