Effects of Company Size, Profitability, Solvability and Audit Opinion on Audit Delay

Syaiful Bahri,Rifa Amnia

doi:10.21107/jaffa.v8i1.7058

Syaiful Bahri, Rifa Amnia

Open Access

https://doi.org/10.21107/jaffa.v8i1.7058

Copy DOI

Abstract

This study aims to analyze the effect of company size, profitability, solvency, and audit opinion on audit delay. The population of this study is LQ-45 companies listed on the Indonesia Stock Exchange in 2017-2018, but the samples employed in this study were 31 companies. The type of research data is a quantitative data of secondary sources, which analyzed with descriptive statistical analysis, classical assumption techniques, multiple linear regression analysis, coefficient of determination R² and t test. The results of this study of solvency variables affect audit delay with a significant value of 0,000. Firm size variable has no effect on audit delay with a significant value of 0.490. The profitability variable does not affect the audit delay with a significant value of 0.098. The audit opinion variable does not affect the audit delay with a significant value of 0.313.

Highlights

Companies listed on the Indonesia Stock Exchange (IDX) are required to report financial statements that have been prepared based on the Financial Accounting Standards (SAK) and audited by auditors
Company size has no effect on audit delay because the company size does not determine the length of audit process
Profitability has no effect on audit delay because the audit process of companies with high profitability level is no different from companies with low profitability level

Summary

Introduction

Companies listed on the Indonesia Stock Exchange (IDX) are required to report financial statements that have been prepared based on the Financial Accounting Standards (SAK) and audited by auditors. One of the company obstacles in publishing financial statements to public and the Capital Market Supervisory Agency (BAPEPAM) is timeliness of auditors in completing their audit reports. Investors’ confidence depends on the quality of information conveyed by the company through the published financial statements. In order to gain the investor confidence, companies are required to provide a clear, accurate, and timely information that can be compared with the same indicators. Delay in submitting financial statements might decrease the investor confidence. Companies that submit financial statements provide information to the market. The delay in the financial statement submission causes unstable stock movement; so that, the investors consider it as an audit delay

Objectives

Methods

Results

Discussion

Conclusion