The Effect of Company Size, Liquidity, Profitability, Solvability, And Audit Firm Size on Audit Delay
Bambang Leo Handoko1, Hery Harjono Muljo2, Ang Swat Lin Lindawati3
1Bambang Leo Handoko, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia, 11480.
2Hery Harjono Muljo, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia, 11480.
3Ang Swat Lin Lindawati, Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia, 11480.
Manuscript received on 13 August 2019. | Revised Manuscript received on 17 August 2019. | Manuscript published on 30 September 2019. | PP: 6252-6258 | Volume-8 Issue-3 September 2019 | Retrieval Number: C5837098319/2019©BEIESP | DOI: 10.35940/ijrte.C5837.098319
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Audit delay is the lag in completing an audit report by the auditor. Audit delay causes financial statements to be inhibited for publication. This causes the users of financial statements to wait longer to be able to use financial statements as a tool in decision making. The purpose of this research is to empirically examine the effect of company size, liquidity, profitability, solvability, and audit firm size towards audit delay on property and real estate companies that listed on Indonesia Stock Exchange (IDX) in 2014-2018. This research is a quantitative study that tests the hypothesis, whether there is the influence of independent variables on the dependent variable. This study uses the ordinary least square method Statistical test used is the coefficient of determination test, partial t test and simultaneous f test. The selection of research samples using purposive sampling method. The sample of this research consists of 46 companies with 5 years of research so total of the research objects amounting 230 data. The data analysis method used in this research is panel data regression analysis using E-views version 10. Based on the results of partial test, profitability and audit firm size have significant effect on audit delay. Company size, liquidity, and solvency do not have a significant effect on audit delay. Simultaneous test result showed that company size, liquidity, profitability, solvability, and audit firm size simultaneously affect audit delay. The results of this study indicate that if the auditor wants to minimize audit delay, they must pay more attention to clients’ profitability and consider the size of the company, the size of the audit’s scope of work.
Keywords: Company Size, Liquidity, Profitability, Solvability, Audit Firm Size
Scope of the Article: Process and Workflow Management