Audit Delay in Indonesian Manufacturing Firms: The Role of Firm Characteristics and Auditor Reputation

Abstract

In 2018-2022, there was a delay in the publication of financial reports, especially in manufacturing companies. This delay is caused by several factors, namely company size, profitability, leverage, and auditor reputation. This study aims to analyze the influence of company size, profitability, leverage, and auditor reputation on audit delay. The research approach uses a quantitative method with a causal research design. The research population consists of manufacturing companies listed on the Indonesia Stock Exchange. The sample selection was done using the purposive sampling method, resulting in 18 manufacturing company samples from 2018-2022. Data analysis using multiple linear regression with IBM SPSS 29.

The research results indicate that firm size, profitability, leverage, and auditor reputation simultaneously or jointly have a significant effect on audit delay, with a sig. value less than 0.00, which is smaller than 0.05. The adjusted R-squared value of 88.7% means that the variables of firm size, profitability, leverage, and auditor reputation in this study are able to explain 88.7% of the audit delay, while the remaining 11.3% is explained by variables other than those in this study. The variables of firm size has negative significant, leverage has positive significant, and auditor reputation has negative significant on audit delay. However, profitability does not have a significant effect on audit delay.