The Role of Company Size On The Influence Of Audit Tenure, Public Accounting Firm Size And Company^s Performance On Audit Delay Vinola Herawaty and Taftazani Aprilito
Faculty of Economics and Business, Universitas Trisakti, Jakarta
Abstract
Going public companies have the obligation to submit annual financial reports and the company^s independent auditor^s report no later than ninety days after the closing date of the annual financial report in accordance with Financial Services Authority (OJK) regulation No.44/PJOK.04/2016 article 7(2) but still many factors are thought to cause audit delays. The purpose of this research is to examine the effect of audit tenure, public accounting firm size, solvency and profitability on audit delay with company size as a moderating variable. This study is a quantitative research using LQ45 index companies on the Indonesia Stock Exchange from 2017 - 2021. The hypothesis test conducted is using Moderated Regression Analysis (MRA) with panel regression equation model. The results indicate that audit delay is influenced negatively by audit tenure, profitability and company size, while solvency and public accounting firm size have not been proven to affect audit delay. This research also concludes that company size is not a moderating variable that moderates factors on audit delay. Potential investors are expected to choose large company, has high profitability and has a long audit tenure because these companies tend to have good company management so they can avoid audit delays
Keywords: Audit Delay, Audit Tenure, Company Size, Solvency, Profitability
