ANALYSIS THE INFLUENCE OF PROFITABILITY, SOLVENCY, COMPANY’S SIZE AND AUDITOR QUALITY TOWARD AUDIT DELAY IN COMPLETION OF FINANCIAL AUDIT (A CASE STUDY: BASIC AND CHEMICAL INDUSTRY LISTED IN IDX PERIOD 2010 – 2014)

Abstract

The purpose of this research is examining the factors that influence audit delay. Audit delay is defined as the timescales of audit process completion, which is start from the ended period of the entity until the date that listed on the audit report. The factors tested in this study are profitability, solvency, company’s size and auditor quality. Profitability is measured by ROA and solvency measured by total debt to total asset. The sample of this research used secondary data from 48 manufacturing companies engaged in basic and chemical industry listed in Indonesia Stock Exchange 2010-2014. There was 240 financial statements used that fulfill the criteria of purposive sampling. The methods are descriptive analysis, the assumptions of classical test, and multiple linear regression. The result of this study shows that audit delay is significantly influenced by solvency and auditor quality. Meanwhile, profitability and company’s size has no significant influence. The result of adjusted R2 is 13.5%, which means that profitability, solvency, company’s size, and auditor quality just explain 13.5% of audit delay variable.