The Effect of Profitability, Solvency and Company Size On Audit Delay

Abstract

This study aims to determine the effect of profitability, solvency and company size on audit delay in manufacturing companies listed in Indonesia Stock Exchange periode 2015-2019. Profitability measures using Return On Asset, solvency using Debt to Asset Ratio and company size using the natural logarithm of Total Asset. This type of research is quantitative research with secondary data, namely audited annual financial report and independent auditor reports from manufacturing companies listed on the Indonesia Stock Exchange in 2015-2019. The sampling technique used purposive sampling, with a sample of 40 companies. The data analysis technique used multiple linear regression analysis. The results of this study partially show that profitability and solvency have significant effect on audit delay, while firm size has no significant effect on audit delay. The results of this study simultaneously show that profitability, solvency, and firm size have a significant effect on audit delay.

Financial Ratio, Reputation of Public Accountant Office and The Timeliness of Audited Financial Statements

“…In public opinion, financial difficulties are bad news that can impact the company's state. The results of this research are linear with studies Firliana & Sulasmiyati (2017), Mulyandani & Qintha (2022), Saragih (2018), andTanjung &Aida (2022) reporting high levels of debt of companies can influence and slow down the audit process. The reason for doing solvability calculations is to summarize the company's financial condition to creditors and estimate the total loan when payment is due.…”

May intellectual capital and corporate governance reduce the probability of financial distress?

“…Financial ratios are instruments used as an early warning system for management, investors and creditors to predict the company's condition in the future. They reflect the organisation's condition, providing confidence that the investment will provide a significant return (Mulyandani & Qintha, 2022). Management uses financial ratios as a basis for developing corporate strategy in order to improve performance (Munchen, 2022).…”