Beruflich Dokumente
Kultur Dokumente
Siti Nurparida
Department of Accounting, Faculty of Economics and Business, University of Sultan
Ageng Tirtayasa, Serang
Email:sitinurparida42@gmail.com
ABSTRACT
Audit delay Audit delay is the length of time, usually in days unit, needed by an auditor in
finishing an audit, from the date of a book annual closure until the date of audit report
publication. Bapepam obligates every public company to publishes their annual reports
as late as the third month after the end date of the annual financial report. This research
aims to learn the influence of company size, audit opinion, Size of audit firm, and
liquidity on audit delay on manufacturing companies registered in Indonesian Sharia
Stock Index (ISSI) within 2011-2016 period. Purposive sampling method is used to gather
samples. Double linear regression is used for data analysis. This research indicates that
company size significantly and negatively affects audit delay, audit opinion significantly
and positively affects audit delay, while Size of audit firm and liquidity are ineffective
towards audit delay.
Key Words: Audit Delay, Company Size, Audit Opinion, Size of Audit Firm, Liquidity
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Proceeding International Seminar on Accounting for Society
Bachelor Degree of Accounting Study Program, Faculty of Economy Universitas Pamulang
Auditorium Universitas Pamulang, March, 21st, 2018
total sales, size of workforce, etc. for public accountants to provide their
Keputusan Ketua BAPEPAM Nomor: services. Sizes of Public Accountant
Kep-11/PM/1997 states that medium Firms or Kantor Akuntan Publik (KAP)
and small companies are legal entities are put into two categories: The big four
that have total assets no more than Rp and non-the big four. Audit lateness
100 Billion. According to Febrianty depends on the company and the public
(2011) in Dewi (2016), companies that accountant firm that audits said
have bigger assets also have more company. Research by
information sources, more accounting EsynasaliViolettaSebayang (2014) states
staff, and more sophisticated that KAP size does not affect the length
information system. Thus, it enables of Audit Delay. Consistently, results
companies to finish their financial from Witjaksono (2014) state that
reports sooner. Moreover, large scaled KAPsize is partially non-affective
companies also have resource to pay towards the length of audit delay. In
higher audit fees such that they are able contrast, research by Apriyanti (2013)
to press auditor to finish their works and Ani Yuliyanti (2011) shows that
earlier and on time compared to smaller KAP sizes have significant influence on
companies. A research Pourali et al. audit delay.
(2013) shows that company size has Other factor that influences audit
correlates positively against audit delay. delay is liquidity. Liquidity is a
This is inconsistent with results from the company‘s ability to fulfill immediate
research by Apriyanti (2014) that shows financial duties, or a company‘s ability
company size has insignificant effect to fulfill their financial duties on
against audit delay negative regression demand (Munawir, 1995 in Wiratmaja,
value coefficient. 2016). According to OwusuAnsah
Auditor opinion is an opinion made (2000), companies that have good news
by an auditor on the audited financial will report more punctually than
report‘s fairness regarding all material companies that have bad news. Research
elements based on the financial report by Almilia and Setiady (2006) shows
preparation with accounting general that liquidity have negative influence
principles (Mulyadi 2013:19). Fair against Financial Report punctuality. In
opinion with no exclusions is always contrast, research by Fadoli (2014)
interpreted as good news for the states that liquidity does not influence
company. If the company receives any audit report lag.
opinion besides unqualified, then the
audit process tends to be longer. Thus, 2. LITERATURE REVIEW
the possibilities for audit lateness are 2.1Agency Theory
higher (Meiden, 20017 in Apriyanti, Agency theory illustrates a company
2014). Resutls from the research Pourali as the meeting point between company
et al (2013) and Apriyani (2014) state owners (principals) with management
that audit opinion has positive (agents). Jensen and Meckling (1976)
correlation against audit delay. Said further explains that agency relationship
results are the opposite of results in happens when one or more principals
Kartika (2011) that audit opinion doesn‘t hire other entities or agents to provide
affect audit delay. certain services and then delegate their
The size of Public Accountant Firms are decision-making authorities. Audit delay
also factors that may affect audit delay. has a close relationship with financial
Public Accountant Firms are business report publication punctuality since the
entities that have earned permission benefits of financial report decline if it is
from the Minister of Finance as bodies not submitted on time. Punctuality show
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Proceeding International Seminar on Accounting for Society
Bachelor Degree of Accounting Study Program, Faculty of Economy Universitas Pamulang
Auditorium Universitas Pamulang, March, 21st, 2018
the length of time between information shareholders, such that the financial
intended to be provided to the time of report can be submitted transparently to
announcement. If said information is not the principals.
submitted on time, the information‘s
benefits decline. The decline of 3. RESEARCH METHODOLOGY
information quality provided to the The data used in this research is
principals will cause information quantitative data, data that is in the form
asymmetry. Information asymmetry is of measurable units or numbers or
one of the elements in agency theory, qualitative data that is converted into
where the agents are much more aware measurable units or numbers (Sugiyono,
of detailed internal information of a 2010:14). The data source is secondary,
company than the principals that are data that is obtained in its final form,
only aware of the external information gathered and processed by another party,
through performance results reported by usually in the form of a publication.
management. Thus, it shows that there is
a need for punctuality to reduce 4. RESULTS AND DISCUSSION
information asymmetry between agents 4.1Descriptive Statistics
or management with principals or
Based on table 4.1 the audit delay on 51 size is held by PT. Indofood Sukses
companies during the last 6 years Makmur, Tbk with -18.53% on 2012
averages at 77.52%. This indicates that while the largest size is held by PT.
the majority of public auditors hired Alaska Industrindo, Tbk on 2015.
bythe companies need relatively Audit opinion of the 51 companies
moderate or under the limit, which is 90 during the last 6 years period averages at
0.93%. This indicates that the
days, to provide audited reports. The
companies, for most of the time, receive
shortest length of audit delay is held by
good opinion which are unqualified or
PT. Merck, Tbk with 25 days on 2012 materially fair given by PAFs as
while the longest length of audit delay is external auditors. The lowest audit
held by PT. Voksel Electric, Tbk on opinion score is held by PT. Indo Farma
2016 with 126 days. (persero), Tbk on 2011 while the highest
score is held by PT. Astra International
The size of 51 companies during Indonesia, TBK from 2011 to 2016.
the 6 years period averages at 11.46%. PAFs size on 51 companies for the
This indicates the size of the majority of last 6 years period averages at 0.56%.
the companies is within large category This indicates that the majority of the
through total actives owned such that companies hire big four firms that are
they are considered trustworthy in perceived as large scaled, professional,
carrying out productions. The smallest experienced, recognized by companies
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Proceeding International Seminar on Accounting for Society
Bachelor Degree of Accounting Study Program, Faculty of Economy Universitas Pamulang
Auditorium Universitas Pamulang, March, 21st, 2018
and other PAFs alike, thus perceived as generally able to fulfill their short-term
being able to produce reliable and obligations on demand by utilizing
trustworthy audit reports. The smallest current available actives thus not
PAF size is held by PT. Alakasa causing the company being late to
Industrindo, meaning they were not submit their annual financial report to an
hiring a big four firm, during 2011 to external auditor. The lowest liquidity
2016. The largest PAF size is held by spires held by PT. Holcim Indonesia,
PT. Hanjaya Mandala Sampoerna, Tbk Tbk at 14,62% on 2011 while the
and PT. Astra International Indonesia, highest liquidity score is held by PT.
Tbk during 2011 to 2016. Jaya Pari Steel, Tbk at 46,498.47% on
Liquidity measured through current 2015
ratio on the 51 companies for the last 6
years period averages at 492.92%. This 4.2Classic Assumption Tests
indicates that the companies are 4.2.1 Normality Test
Based on the table 4.2, all variables model data originates from a normally
on the research model are found to be distributed data.
normal since the asym. Sig. (2-tailed)
amounts to 0.051>alpha (0.05). Thus, it 4.2.2 Multicollinearity Test
can be concluded that the research
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Proceeding International Seminar on Accounting for Society
Bachelor Degree of Accounting Study Program, Faculty of Economy Universitas Pamulang
Auditorium Universitas Pamulang, March, 21st, 2018
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Proceeding International Seminar on Accounting for Society
Bachelor Degree of Accounting Study Program, Faculty of Economy Universitas Pamulang
Auditorium Universitas Pamulang, March, 21st, 2018
Based on table 4.6, the value of size, audit opinion, PAF size, and
Adjusted R square is 0.065. This liquidity, while the rest or 93.5% can be
indicates that the variance on audit delay explained through other variables not
can be explained as 6.5% by company included in the research.
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Proceeding International Seminar on Accounting for Society
Bachelor Degree of Accounting Study Program, Faculty of Economy Universitas Pamulang
Auditorium Universitas Pamulang, March, 21st, 2018
auditor report must contain an opinion PAFs are business entities that have
statement about the overall financial earned the necessary permission from
report or an assertion that such opinion Minister of Finance as bodies for public
cannot be given, for which the reasons accountants to provide their services.
must also be stated. Regarding to PAF sizes are put into two categories:
auditor names being linked with certain big four and non-big four. It is assumed
financial reports, said reports must that hiring more competent PAF will
contain clear guidance on the nature of probably cause shorter audit completion
auditing works, if there‘s any, and the time. Generally, larger PAFs such as the
degree of responsibility held by auditor. big four ones are assumed to be more
Carslaw and Kaplan (1991) states likely to finish their audit tasks sooner
the relationship between types of auditor compared to the non-big four ones in
opinion with audit delay. Companies order to maintain their stellar reputation.
that receive qualified opinion show Audit delay is the duration of audit
longer audit delay than those with completion starting from the date of
unqualified opinion. Companies with book closure up to the date of audit
qualified opinions have longer report publication (Halim, 2000). It can
submission times due to significant also be said that audit delay is measured
qualifications in the fairness and through the length of days where an
implementation of general accounting independent auditor is completing audit
principles in the writing of financial processes, from the date of book closure
report thus requiring more thorough on 31st of December up to the date
checks on the consistency of generally mentioned in the independent auditor
accepted accounting practices. report.
The results show that audit opinion
have positive effects on audit delay of 4.3.3 Effect of Liquidity on Audit
the companies researched. This reflects Delay
the fact that in general companies that Liquidity is a measure of
receive qualified opinion on their annual company‘s ability in fulfilling their
financial reports tend to experience short-term debts by utilizing various
longer audit delay for having significant sources owned by the company such as
qualifications on fairness and accounting sales, number of actives, and
principles practice in their financial obligations. Company‘s ability in
report writing in order to make the fulfilling their short term financial duties
financial reports beneficial for decision will be met with positive market
making considerations by stakeholders respond, consistent with signaling
such as management and investors. theory. Higher liquidity means the
market will be more likely to put their
4.3.2 Effect of PAF Size on Audit trust on the company for being able to
Delay maintain such liquidity that indicates
The results from this research good performance. In contrast, lower
shows that PAF size does not affect liquidity indicates a company‘s inability
audit delay. The findings are consistent to fulfill their short-term duties,
with research by Carslaw and Kaplan reflecting poor performance, thus
(1991) that states PAF size does not inviting poor judgements by investors.
affect audit delay. Such findings indicate Moreover, liquidity is also an
that hiring either big four or non-big indicator of company‘s ability in
four PAFs does not guarantee punctual fulfilling their due short-term duties.
audit delay. Companies with higher liquidity
indicates good news which will further
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Proceeding International Seminar on Accounting for Society
Bachelor Degree of Accounting Study Program, Faculty of Economy Universitas Pamulang
Auditorium Universitas Pamulang, March, 21st, 2018
drives them to publish their financial used as reference for similar researches
report on time to create positive market in the future. Also, the author suggests
respond. Liquidity becomes one of many research into other variables that include
factors which can affect financial report number of audit committee members,
punctuality. Higher liquidity frequency of audit committee meetings,
indicatesgood performance thus financial literacy, auditor switching,
indicating that the management audit fee, profit management, and other
publishes their financial report, which relevant variables to produce more
has been audited by an external auditor, comprehensive and inclusive results.
sooner.
Results from this research show
that liquidity does not affect audit delay. REFERENCES
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report publication. This research can be Delay (Studi Empiris Pada
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Bachelor Degree of Accounting Study Program, Faculty of Economy Universitas Pamulang
Auditorium Universitas Pamulang, March, 21st, 2018
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Bachelor Degree of Accounting Study Program, Faculty of Economy Universitas Pamulang
Auditorium Universitas Pamulang, March, 21st, 2018
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Bachelor Degree of Accounting Study Program, Faculty of Economy Universitas Pamulang
Auditorium Universitas Pamulang, March, 21st, 2018
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