Abstract
The study aims to identify and analyze the factors affecting the audit delay. The study includes a quantitative study using secondary data obtained from the company’s financial statement. The study’s population constituted the entire manufacturing and finance companies listed on the Indonesia Stock Exchange during the year 2018-2019. The sample is collected by using purposive sampling over the listed companies in the criteria that the company publishes the audited financial report as of December 31 and also shows the data needed in the study. The sample which has met the criteria is 510 companies and analyzed by multiple linear regression analysis. The results show that the industrial type and complexity of the company have a positive influence on the audit delay, the auditor opinions, the reputation of Public Accounting Firm and the company’s size have a negative impact on the audit delay, while the profitability does not affect the audit delay.
Highlights
Financial reports contain information from the accounting process that can be used by management to evaluate the performance of the company and can be used as a basis for consideration of decision making in future periods
The purpose of this study is to provide empirical evidence on the factors that affect audit delay, which consists of the type of industry, auditor opinion, KAP reputation and the complexity of company operations
On the assumption of agency problems, this study proves that audit delay is not caused by a conflict of interest between the principal and the agent, especially in manufacturing and financial sector companies listed on the Indonesian Stock Exchange (IDX) in the 2018-2019 period
Summary
Financial reports contain information from the accounting process that can be used by management to evaluate the performance of the company and can be used as a basis for consideration of decision making in future periods. In addition to the type of industry, Amani and Waluyo (2016) find that auditor opinion affects audit delay when Miradhi and Juliarsa (2016) prove that this factor is not significant for audit delay. Other empirical evidence shows that the reputation of the Public Accounting Firm (or KAP) has a significant effect on audit delay (Saputri, 2012). This study discusses the impact of the audit completion time on the financial statements on the timeliness of the publication of audited financial report information outside the specific factors of the company itself where the length of the audit delay is called the audit delay. The purpose of this study is to provide empirical evidence on the factors that affect audit delay, which consists of the type of industry, auditor opinion, KAP reputation and the complexity of company operations
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