The Effect of Solvency, Audit Committee, Reputation of Public Accounting Firms, and Audit Opinions on Audit Delay
Empirical Study on Manufacturing Companies in Various Industrial Sectors Listed on The Indonesia Stock Exchange for The Period 2017–2021
DOI:
https://doi.org/10.59889/ijembis.v3i2.298Keywords:
Audit Delay, Solvency, Audit Committee, Public Accounting Firm Reputation, Audit OpinionAbstract
This study aims to analyze what factors affect audit delay in manufacturing companies in various industrial sectors listed on the Indonesia Stock Exchange (IDX) for the 2017-2021 period. The model in this study consists of four independent variables, namely solvency, audit committee, reputation of public accounting firms, and auditor opinion. In addition, this study also used audit delay as a dependent variable. The secondary data used in this study is in the form of financial statements and audit reports from manufacturing companies in various industrial sectors listed on the Indonesia Stock Exchange (IDX) in 2017-2021. With a sample number of 100 companies. The sample selection is based on three criteria: (1) Companies listed on the IDX in the 2017-2021 period and consistently publish financial statements. (2) Financial statements shall be presented in rupiah currency and shall expire on December 31. (3) Have data related to the variables used in the study. The results of regression testing show that two independent variables, namely the reputation of the public accounting firm and audit opinion negatively affect audit delay. Meanwhile, solvency and the audit committee do not influence audit delay. This means that the high and low solvency ratios do not affect the audit completion period or audit delay. The large proportion of debt owned by the company is reasonable as long as there is adequate disclosure, so it will not hamper the auditor in carrying out his audit work. Also, the increasing number of audit committees will make it difficult to form a good communication and coordination network between audit committee members.
Downloads
References
Adiraya, Irwan., &; Nur, S. (2018). The Effect of Company Size, Profitability, Solvency, and Audit Opinion on Audit Delay. Journal of Accounting and Tax Analysis, 2(2), 99–109.
Alfiani, D., &; Putri, N. (2020). The Effect of Company Size, Profitability, Solvency, and Public Accounting Firm Reputation on Audit Delay. Journal of Technopreneurship on Economics and Business Public Review of Audit Delay. 1(2). https://jtebr.unisan.ac.id
Angruningrum, S., &; Gede Wirakusuma, M. (2019). The effect of profitability, leverage, complexity of operations, reputation of the KAP and Audit Committee on Audit Delay. E-Journal of Accounting Udayana University, 5(2), 251–270. https://doi.org/10.54964/liabilitas.v4i1.49
Annisa, D. (2018). The effect of company size, type of audit opinion, cap size and audit tenure on audit delay. Indonesian Journal of Sustainable Accounting, 1(1), 108. https://doi.org/10.32493/jabi.v1i1.y2018.p108-121
Apriyana, N., &; Rahmawti, D. (2017). The Effect of Profitability, Solvency, Company Size, and Cap Size on Audit Delay. Nominally, Barometer of Accounting and Management Research, VI(3), 108–124.
Aryaningsih, N. N. D., &; Budiartha, I. K. (2014). The Effect of Total Assets, Solvency Level and Audit Opinion on Audit Delay. Journal of Accounting Udayana University, 7(3), 2302–8556.
Atmojo, D. T., &; Darsono. (2017). Analysis of Factors Affecting Audit Report Lag (Empirical Study on Companies Listed on the Indonesia Stock Exchange in 2013-2015). Diponegoro Journal of Accounting, vol. 6, no. 4, hh. 1-15.
Barkah, G., &; Pramono, H. (2016). The effect of company size, profitability, and solvency on audit delay in manufacturing companies listed on the IDX for the period 2010-2012. Compartment, XIV(1), 75–89.
Charviena & Elisa, T. (2016). The Effect of Company Size, Operating Profit and Loss, Solvency, Company Age, Industry Classification, and KAP Size on Audit Delay. Ultima Accounting, Vol. 8 No. 2.
Dewi, Hayuningtyas P. (2021). Empirical study of the effect of cap reputation, audit opinion and tenure audit on the delay in submitting audited financial statements in mining issuers listed on the Stock Exchange for the period 2015–2018. Krisnadwipayana Journal of Accounting and Business, 8(3). https://doi.org/10.35137/jabk.v8i3.597
Eksandy, A. (2017). The Effect of Company Size, Solvency, Profitability and Audit Committee on Audit Delay. Competitive Journal of Accounting and Finance, 1(2).
Fitria, I. S., &; Indah, M. (2015). LQ 45 Company Listed on IDX 2011-2013.
Hidayatullah, A., &; Sulhani. (2018). The Effect of Financial Statement Manipulation and Chief Financial Officer Characteristics on the Timeliness of Financial Reporting with Audit Quality as a Moderating Variable. Journal of Accounting and Business Dynamics, 5(2), 117–136. https://doi.org/10.24815/jdab.v5i2.10872
Indriani, A., &; Sakti, A. (2020). The Effect of Profitability and Solvency on Audit Delay (Case Study on Oil and Gas Sub-Sector Companies Listed on IDX for the period 2012-2018). Journal of Accounting and Economics, 10(2), 198-205.
Khoufi, N., & Walid, K. (2018). An Epirical Examination of the Determinants of Audit Report Delay in France. Manajerial Auditing Journal.
Kowanda, Pasaribu, &; F. (2016). Antecedent Audit Delay on LQ45 Issuers on IDX. Journal of Accounting and Finance Research, 12(1). https://medium.com/@arifwicaksanaa/pengertian-use-case-a7e576e1b6bf
Liwe, A. G., Manossoh, H., &; Mawikere, L. M. (2018). Analysis of factors affecting audit delay (empirical study on property and real estate companies listed on the Indonesia Stock Exchange). Going Concern: Journal of Accounting Research, 13(02), 99–108. https://doi.org/10.32400/gc.13.02.19105.2018
Lubis, A. W., &; Abdullah, I. (2021). The effect of solvency and profitability levels on audit delay in trading companies listed on the Indonesia Stock Exchange in 2015-2019. Journal of Contemporary Accounting and Finance (JAKK), 59–66. https://doi.org/10.30596/jakk.v4i1.6877
Miradhi, M. D., &; Juliarsa, G. (2016). Company Size as Moderating the Effect of Profitability and Audit Opinion on Audit Delay. E-Journal of Accounting Udayana University, 16(1), 388–415.
Ningsih, G. A., &; Widhiyani, L. (2015). The effect of company size, operating profit, solvency and audit committee on audit delay. E-Journal of Accounting, 12(3), 481–495.
Praptika, P., &; Rasmini, N. (2016). The effect of audit tenure, auditor turnover and financial distress on audit delay in consumer goods companies. E-Journal of Accounting, 15(3), 2052–2081.
Pratiwi, D. S. (2018). The size of the company moderates the effect of profitability, leverage, audit committees, and independent commissioners on audit delays. Journal of Methodist Accounting and Finance, 2(1), 1–13.
Purba, D. M. (2018). The Effect of Profitability, Good Corporate Governance Structure and Audit Quality on Audit Delay. Scientific Journal of Unitary Accounting, 6(1), 009–022. https://doi.org/10.37641/jiakes.v6i1.59
Puryati, D. (2020). Factors affecting audit delay. Journal of Accounting Scientific Studies of Accounting (JAK), 7(2), 200–212. https://doi.org/10.30656/jak.v7i2.2207
Regilia. (2018). The effect of company size, solvency, operating profit/(loss), and audit opinion on audit delay (study on mining sector companies listed on IDX for the period 2010-2012). Journal of Bina Akuntansi (5(1), 21–43.
Shaena, Joseph, H. (2020). Factors affecting audit delay. Media Research, Accounting, Auditing & Information, 10(3), 15–32. https://doi.org/10.25105/mraai.v10i3.1033
Sucipto, H. (2020). Factors affecting audit delay. Management and Business Review, 4(1), 60–74.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Nur Izzah Marwaziyyah, Zumratul Meini, Kumba Digdowiseiso
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
