Factors that Influence Audit Delay in the Trade, Service, and Investment Sector that Listed on Indonesian Stock Exchange

Rohana Dita Safitri,Ni Nyoman Alit Triani

doi:10.9744/jak.23.1.41-50

Abstract

The purpose of this study is to provide empirical evidence of the effect of company size, audit opinion, the complexity of company operations, audit tenure, and KAP specialization on audit delay. The sampling method used was purposive sampling on companies in the trade, service, and investment sectors for the period 2013-2018 and produced 447 data. The research data were analyzed using multiple linear regression analysis. The results of data analysis show that company size and audit opinion affect audit delay meanwhile, the complexity of company operations, audit tenure, KAP specialization does not affect audit delay.

Highlights

The length of time in the submission of financial statements is measured from the closing of the financial reporting year to the completion of the audit financial statements by an independent auditor called audit delay [12]
According to [13], audit delay is divided into three types, the first is initial lag, which is calculated based on the distance between the end date of the fiscal year and the date the financial statements are received by the capital market
This study examines the effect of firm size, auditor opinion, the complexity of company operations, audit tenure, and KAP specialization on audit delay

Summary

Introduction

The length of time in the submission of financial statements is measured from the closing of the financial reporting year to the completion of the audit financial statements by an independent auditor called audit delay [12]. According to [13], audit delay is divided into three types, the first is initial lag, which is calculated based on the distance between the end date of the fiscal year and the date the financial statements are received by the capital market. Both auditor's signature lag, calculated based on the distance between the end date of the fiscal year and the date recorded in the independent auditor's report. Bursa Efek Jakarta Number: Kep-307 / BEI / 07-2004 concerning Regulation Number 1 H concerning Sanctions which states that there are three warnings as well as fines for the delay and the heaviest sanctions are imposed suspension

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