The influence of company size, company profit, solvency and CPA firm size on audit report lag

Abstract

Purpose – To reveal the effect of each of company size, company profit, solvency and the size of public accountant on audit report lag for the infrastructure, utility and transportation sectors listed on the Indonesian Stock Exchange. Methodology – The population of this research are infrastructure, utility and transportation companies that are listed on and supervised officially by the Indonesian Stock Exchange from 2013–2015. The technique used for choosing the sample was purposive sampling. The sample consisted of 57 companies chosen from the population. The data was analysed using double regression analysis. Findings – The study finds that first , company size has a negative and significant effect on audit report lag. Second , company profit has a negative and significant effect on audit report lag. Third , solvency has no significant effect on audit report lag, and fourth , the size of public accountant has no significant effect on audit report lag.   Conclusion – The magnitude of a company has is a significant negative influence on audit report lag. This case can be interpreted as the bigger the company is, the smaller the audit report lag will be.