The Effect of Company Size, Accounting Firm Size, Solvency, Auditor Switching, and Audit Opinion on Audit Delay

Vicky Anggel Putra,Romanus Wilopo

doi:10.14414/tiar.v7i1.956

Abstract

This research aims to examine the effect of company characteristics, consisting of company size, solvency, on audit delay in the property and real estate sector companies listed on the Indonesia Stock Exchange (IDX). In addition, this research also adds three variables, i.e. accounting firm size, auditor switching and audit opinion, that are considered having an effect on audit delay,. The sample used in this research is all property and real estate sector companies listed on IDX in 2011-2015. Sampling is conducted using purposive sampling technique, with the final sample consisting of as many as 40 property and real estate sector companies listed on the Indonesia Stock Exchange (IDX) 2011-2015. Logistic regression analysis is used to test hypotheses by explaining the relationship between the variables in this research. The results of this study show that the variables of company size, accounting firm size, solvency, and audit opinion do not have effect on audit delay, while the variable of auditor switching has a significant effect on audit delay

Highlights

Financial statement is often regarded as a business language because it provides an event report of a company
This study aims to obtain empirical evidence about the effect of firm size, public accounting firm size, solvency, switching auditors and audit opinion on audit delay in property and real estate companies listed on the Indonesia Stock Exchange 2011-2015
If there is an increase in firm size variable by 1 percent, the audit delay on property and real estate companies listed on the Indonesia Stock Exchange (IDX) period 2011-2015 will decrease by 0.057 percent with the assumption that other variables are considered fixed

Summary

Introduction

Financial statement is often regarded as a business language because it provides an event report of a company. One way how investors monitor the performance of a public company is through the financial statement that they published. Audit delay of a financial statement requires the auditor to complete his fieldwork punctually. Companies that are late in publishing their audited financial statements will be subject to fines in accordance with the applicable laws and regulations. This indicates that timely delivery of financial statements is necessary

Objectives

Methods

Results

Conclusion