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August 25, 2025Journal of Economics Finance and Management Studies0 citationsOpen Access

The Effect of Audit Tenure, Profitability, and Solvency on Audit Delay in Banking Companies Listed on the Indonesia Stock Exchange

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LALa Ode AntoEHErwin HadisantosoGPGagaring Pagalung

Key Points

  • Profitability significantly affects audit delay, suggesting it plays a key role in audit timeliness.
  • Analysis indicates audit tenure and solvency do not significantly impact the delay in producing audit reports.
  • Using multiple linear regression, this study examined data from banking companies listed on the Indonesia Stock Exchange.
  • Findings highlight the need for timely audits, aligning with compliance and signaling theories in financial reporting.

Abstract

This study aims to analyze the effect of audit tenure, profitability, and solvency on audit delay in banking companies listed on the IDX for the period 2020–2024. The research method uses a quantitative approach with secondary data obtained from financial statements published on the IDX official website. Audit delay is measured based on the difference between the financial statement date and the audit report date. Audit tenure is measured by the length of the auditor-client relationship, profitability using Return on Assets, and solvency using the Debt to Asset Ratio. Data analysis was conducted using multiple linear regression with the assistance of SPSS version 27. The results of the study indicate that audit tenure and solvency do not significantly affect audit delay. This suggests that the length of the auditor-client relationship or the level of solvency does not always influence the timeliness of audit reporting. Conversely, profitability significantly affects audit delay because high or low profitability levels do not directly determine the complexity or duration of the audit. Simultaneously, the three variables do not significantly affect audit delay. These findings are consistent with compliance theory and signaling theory, which emphasize the importance of timeliness in financial reporting.

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Cite This Study

Anto et al. (2025) studied this question.

synapsesocial.com/papers/68af5d63ad7bf08b1eae09e5https://doi.org/10.47191/jefms/v8-i8-47
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