THE INFLUENCE OF COMPANY SIZE, COMPANY PROFIT, SOLVENCY AND CPA FIRM SIZE ON AUDIT REPORT LAG

Year 2018, Volume: 5 Issue: 1, 1 - 10, 30.03.2018

Yosia Taruli Mutiara Adam Zakaria Ratna Anggraini

https://doi.org/10.17261/Pressacademia.2018.779

Abstract

Purpose – To reveal
the effect of each of company size, company profit, solvency and the size of
public accountant on audit report lag for the infrastructure, utility and
transportation sectors listed on the Indonesian Stock Exchange.

Methodology
– The population of this research are infrastructure, utility and
transportation companies that are listed on and supervised officially by the
Indonesian Stock Exchange from 2013–2015.
The technique used for choosing the sample was purposive sampling. The sample consisted of 57 companies
chosen from the population. The data was analysed using double regression
analysis.

Findings – The study
finds that first, company size has a
negative and significant effect on audit report lag. Second, company profit has a negative and significant effect on
audit report lag. Third, solvency has
no significant effect on audit report lag, and fourth, the size of public accountant has no significant effect on
audit report lag.  

Conclusion –
The magnitude of a company has is a significant negative influence on
audit report lag. This case can be interpreted as the bigger the company is,
the smaller the audit report lag will be.  

Keywords

Company size, company profit and loss, solvency, size of public accountant, audit report lag

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