Impact of Reputation of Public Accounting Firms as Mediating Between Leverage, Profitability and Company Size Against Audit Delay of Large Trading Companies on Indonesia Stock Exchange

Abstract

Financial statements delivered promptly are useful in analyzing and making decisions in the economic field that can contribute to national economic growth. The timeliness of financial statements on the results of the audit report can also affect the value of the financial statements. This research aims to determine the influence of leverage, profitability, and company size on audit delay as well as the impact of the reputation of public accounting firms (KAP) as a mediating influence of leverage, profitability, and company size towards audit delay. This research was conducted on twenty Large Trading Companies during the period 2015-2019 which totaled 100 data. The data analysis techniques used in this research are descriptive statistical analysis, classical assumption test, multiple regression analysis, and hypothesis testing. The results showed that partially leverage, profitability, and KAP’s reputation had an insignificant influence on audit delay, while the company size has a significant influence on audit delay. Furthermore, the reputation of public accounting firms can moderate the influence of leverage on audit delay but is unable to moderate the influence of the company size and profitability on audit delay.

The Role of Public Accountant Company in Pressing Audit Report Delays for Go Public Companies in Indonesia Through Panel Analysis

“…The research results for this hypothesis are in line with the research of (Suryandari & Dwiyanti, 2021); (Sulistiyo et al, 2022); (A. Astuti et al, 2021) who found that the reputation of public accountant firm to company size unable to reduce audit delay. In contrast to the research of (P. Astuti & Puspita, 2020); (Rahardi et al, 2021) found that the role of KAP's reputation can shorten the occurrence of audit report lag with the existence of resources and systems that support the audit process in large-scale companies.…”

“…The implications of the size of the company on audit delay will be further strengthened by KAPs that have a good reputation because they have flexible scheduling resulting in a short span of audit delays (A. Astuti et al, 2021). Based on that explanation, the fifth hypothesis (H5) can be formulated as follows: H5: The reputation of a public accountant company has a significant role in the relationship between company size and audit report lag.…”

The Function Of Public Accountant Company In Pressuring Audit Report Delays For Firms That Are Going Public In Indonesia: Panel Analysis

“…According to (A. Astuti et al, 2021), the audit delay gets shorter the longer a company has been a client of a public accounting firm . This is due to the fact that public accountants are familiar with the company's traits, internal control framework, and other factors.…”

Analysis of The Influence of Enterprise Resources Planning Adoption and Information Technology Applications on Quality of Accounting Report

“…Finally, the quality of the accounting information generated will benefit from the upkeep of a robust information technology infrastructure. Therefore, the quality of accounting information a firm generates will benefit from properly and efficiently using information technology [8]. The information technology revolution will permeate all aspects of life, including an organization's accounting information system.…”

“…Many people say that accounting information systems are nothing more than a course about computers. Accounting information systems discuss collecting data, storing data, and providing information to decisionmakers [8]. Adequate instruments are required to complete this task correctly and efficiently.…”