p–ISSN: 2723 - 6609 e-ISSN: 2745-5254

Vol. 5, No. 6 June 2024 http://jist.publikasiindonesia.id/

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2907

Analysis of the Causes of Audit Delay in IDX30 Companies

on the Indonesia Stock Exchange (IDX)

Shinta Amalia

, Hermawan

Institut Teknologi Sepuluh Nopember (ITS) Surabaya, Indonesia

Email: [email protected]

, [email protected]

*Correspondence

ABSTRACT

Keywords: Operational

Complexity; Quality of

Financial Reporting;

Compliance Level.

The publication of financial statements has been regulated

by the Indonesia Stock Exchange (IDX) and is a company

obligation. Although there are regulations regarding the

maximum time for the publication of audited financial

statements, many companies still delay submitting these

financial statements. A similar situation also occurs with

companies classified under the IDX30 on the Indonesia

Stock Exchange (IDX). This study explores whether the

sector, profitability, and profit and loss of the company

influence audit delay in IDX30 companies. This study uses

a quantitative approach and purposive sampling technique

for sample selection. The study population includes 30

IDX30 companies listed on the Indonesia Stock Exchange

from 2018-2022. The study results indicate that the sector,

profit and loss, and company profitability positively

influence audit delay in IDX30 companies.

Introduction

In the assessment of the prestige of a company, one of them can be seen from its

financial performance (Gustini, 2020). Financial performance can be seen in the financial

statements made by the company every quarter and is the basis for investors to predict

the company's future survival (Adhika Wijasari & Ary Wirajaya, 2021). The publication

of financial statements by public companies is an obligation that must be fulfilled by the

Financial Services Authority Regulation No. 51/POJK.03/2017 concerning the

application of sustainable finance for financial service institutions, issuers, and public

companies, where financial statements must be submitted no later than 120 days after the

closing of the books or at the end of the fourth month (Louwers, Blay, & Sinason, 2018).

The determination of these rules has not been maximally implemented by companies

listed on the Indonesia Stock Exchange (IDX). In the financial world, the delay of a

company in reporting its financial statements promptly is called an audit delay

(Rahmadhani & Alexander, 2023).

Audit delay is a phenomenon in the accounting field where there is a delay in

completing an audit of a company's financial statements (Hermawan & Suzan, 2018).

This can be caused by various factors, including the complexity of company transactions,

Shinta Amalia, Hermawan

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2908

lack of human or financial resources, regulatory changes, or internal problems in the audit

process itself. The impact of audit delays can be significant, especially regarding investor

confidence in the credibility and quality of the company's financial statements. A study

(Indriani, 2020) found that audit delays can negatively impact stock prices, as investors

tend to feel uncertain and hesitant about delayed financial information. Therefore,

company management and auditors must work together to reduce audit delays as much

as possible by increasing efficiency in the audit process and identifying and overcoming

obstacles that cause such delays.

A previous study conducted (Ulita & Romdioni, 2019) stated that the variables of

company size, company age, profitability, solvency, profit and loss, and KAP size

simultaneously had a significant effect on audit delay in IDX-listed property and real

estate sector companies in 2018-2020. (Nurrahmani, Handayani, & Nusa, 2022) their

research stated that the company's profit and loss variables and bankruptcy prediction did

not affect the audit delay, while there were other variables, namely the type of industry

that affected the audit delay in the LQ45 company case study listed on the IDX in 2017-

2022. The profitability and solvency factors have been analyzed previously by (Liwe,

Manossoh, & Mawikere, 2018) and (Kurniawan & Laksito, 2015). They found that these

factors influence audit delay. Previous research by (Supadmo & and Arifin, 2020) and

Puspita (2017) also revealed that the company's operating profit and loss had a significant

influence on audit delay, although Wulandari's (2017) findings showed otherwise.

According to IDX Regulation Kep-307 / JSX / 07-2003 2003, IH number, in

addition to the declining relevance of financial statements, delays in submitting financial

statements also have the potential to result in companies being sanctioned by the IDX.

The sanctions can vary from warnings to suspension of securities trading from the

company in question, with fines as one possibility. Given the importance of timeliness in

influencing the essential quality of financial statements, researchers are interested in

exploring the factors that can affect audit delay. Although previous studies have examined

these factors, results have varied. Therefore, researchers are interested in analyzing the

results with research objectives: companies incorporated in IDX30 on the Indonesia Stock

Exchange in the last five years (2018-2022). The company is an entity that significantly

influences the Indonesian economy. IDX30 Index is a stock market index that includes

30 of the largest and most liquid companies listed on the Indonesia Stock Exchange

(IDX). Companies that are members of IDX30 have diverse profiles, ranging from the

financial, telecommunications, consumer, and energy sectors. Their presence reflects the

stability of the country's economy and becomes an essential indicator of the performance

of the Indonesian capital market. IDX30 is a benchmark for domestic and international

investors to measure the performance of the Indonesian stock market. By following

IDX30's movements, investors can gain extensive insight into market direction and

trends, allowing them to make more intelligent and informed investment decisions.

The hypothesis in this study is that the company sector has a positional influence

on audit delay in companies incorporated in IDX30 on the Indonesia Stock Exchange

(H_1); The company's profit and loss has a positional influence on audit delay in

Analysis of the Causes of Audit Delay in IDX30 Companies on the Indonesia Stock Exchange

(IDX)

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2909

companies incorporated in IDX30 on the Indonesia Stock Exchange (H_2); The

probability of the company has a positional influence on audit delay in companies

incorporated in IDX30 on the Indonesia Stock Exchange (H_3).

Method

This study uses the quantitative method to obtain the significance of the influence

between independent variables and dependent variables. The processed data is secondary

data sourced from the consolidated financial statements of each company listed in IDX30

on the Indonesia Stock Exchange (IDX). There are three independent or independent

variables, namely the company's sector, company profit and loss, and company

profitability, with one dependent variable, namely audit delay. The purposive sampling

technique is used by researchers to sample using several specified criteria (Bougie, 2017,

p. 67). The first criterion is that the company is listed in IDX30 on the Indonesia Stock

Exchange (IDX). Second, the company consecutively, namely five years (2018-2922)

classified as IDX30. Third, the company has complete financial statements for five

consecutive years (2018-2022). Finally, the company does not declare its consolidated

financial statements in currencies other than rupiah. Thus, from these criteria, 14

companies were studied with a total sample of 70.

Results and Discussion

This study used IBM SPSS SPSS 23 in processing the data obtained. There are four

variables, of which three are independent, namely the company's sector (X_1), company

profit and loss (X_2), and profitability (X_3), while one is a dependent variable, namely

audit delay (Y). A descriptive statistical test was carried out, and the results are shown in

Table 1. It can be seen that:

1. The audit delay showed a minimum value of 16, a maximum of 146, an average of

59.63, and a standard deviation of 28,227. In this case, the rta-average value obtained

is greater than the standard deviation (59.63 > 28.227), which can be interpreted as

heterogeneous data.

2. The company sector showed a minimum value of 1, a maximum of 7, an average of

3.43, and a standard deviation of 1,690. In this case, the rta-average value obtained is

greater than the standard deviation (3.43 > 1.690), meaning the data is heterogeneous.

3. The company's profit and loss showed a minimum value of 1.94, a maximum of

511.70, an average of 13606.15, and a standard deviation of 117499.57. In this case,

the average value obtained is greater than the standard deviation (13606.15 >

117499.57), which can be interpreted as indicating that the data is heterogeneous.

4. The company's profitability shows a minimum value of 0.37, a maximum of 46.66, an

average of 8.5954, and a standard deviation of 9.32555. In this case, the average value

obtained is less than the standard deviation (8.5945 > 9.32555), which can be

interpreted as homogeneous data.

Shinta Amalia, Hermawan

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2910

Table 1

Descriptive Statistical Test Results

Descriptive Statistics

Minimum

Maximum

Mean

Std. Deviation

Audit_Delay

146

59.63

28.227

Sector

3.43

1.690

Laba_Rugi

1.94

511.70

13606.15

117449.57

Profitability

.37

46.66

8.5954

9.32555

Valid N

(listwise)

Kolmogorov-Smirnov Normality Test

The results of the Kolmogorox-Smirnov normality test, contained in Table 2, state

that asymp. Sig. (2-tailed) shows a figure of 0.200. This is greater than 0.05 and can mean

that the resulting distribution of existing data is expected.

Table 2

Kolmogorov-Smirnov Normality Test Results

One-Sample Kolmogorov-Smirnov Test

Unstandardize

d Residual

Normal Parameters

a,b

Mean

.0000000

Std. Deviation

21.91260499

Most Extreme

Differences

Absolute

.084

Positive

.065

Negative

-.084

Test Statistic

.084

Asymp. Sig. (2-tailed)

.200

c,d

a. Test distribution is Normal.

b. Calculated from data.

c. Lilliefors Significance Correction.

d. This is a lower bound of the true significance.

Uji Multicoloniniaritis

The results of the multicollinearity test contained in Table 3 show that the company

sector has a tolerance value of 0.850 with a VIF of 1,777, the company's profit and loss

has a tolerance value of 0.900 with a VIF of 1,111, and profitability has a tolerance value

of 0.778 with a VIF of 1,286. Theoretically, the condition as a data does not have

multicollinearity if the tolerance value < 0.10 and VIF > 10. The three variables show that

Analysis of the Causes of Audit Delay in IDX30 Companies on the Indonesia Stock Exchange

(IDX)

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2911

the question is valid in each result, so it can be concluded that the resulting regression

model does not have multicollinearity between independent variables in this study.

Table 3

Multicollinearity Test Results

Coefficients

Model

Collinearity Statistics

Tolerance

BRIGHT

(Constant)

Sector

.850

1.177

Laba_Rugi

.900

1.111

Profitability

.778

1.286

a. Dependent Variable: Audit_Delay

Heteroscedasticity Test

This test is carried out to determine the suitability between variables. In this case,

it is good research if there are different variances in the data; in other words,

heteroscedasticity does not occur (Yunita & Amin, 2023). Table 4 shows the results of

the heteroscedasticity test where the sig value. For the corporate sector, it was 0.503, the

company's profit and loss was 0.251, and profitability was 0.064. Data is said to have

much variance if the value of sig. > 0.05, it can be concluded that the three independent

variables state a value of >0.05 so that heteroscedasticity is considered not to occur.

Table 4

Heteroscedasticity Test Results

Coefficients

Model

Say.

(Constant)

Sector

.503

Laba_Rugi

.251

Profitability

.064

a. Dependent Variable:

Audit_Delay

Aji Telescope Watson

This autoregulation test is used to see whether the data presented shows a positive

or negative correlation. The results of the Durbin-Watson test in Table 5 show a value of

1.813. This value in Durbin Watson's theory is dw. In the Durbin-Watson test theory table

for three independent variables with 70 samples, the resulting dl value is 1.7028. It can

be seen that the results are due < dw < (4-du) or 1.7028 < 1.813 < 2.2972, so the resulting

conclusion is that in this study, autocorrelation is carried out.

Shinta Amalia, Hermawan

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2912

Table 5

Aji Telescope Watson

Model Summary

Model

R Square

Adjusted R

Square

Std. The error

of the Estimate

Durbin-

Watson

.630

.397

.370

22.405

1.813

a. Predictors: (Constant), Profitabilitas, Laba_Rugi, Sektor

b. Dependent Variable: Audit_Delay

Multiple Linear Regression Test

It can be seen in Table 6, which is the result of the multiple linear regression test or

anova test. The table shows that the value of audit delay shown by the name constant is

55,622. The value is obtained from the form of a multiple linear equation with the

following coefficient value:

1. The coefficient on the company's sector variable is 8,467 with a positive value, which

can be interpreted as audit delay will increase by 8,467.

2. The coefficient on the company's profit and loss variable of -1.215E-12 with a negative

value, which can be interpreted as audit delay, will be reduced by -1.215E-12.

3. The coefficient on the company's profitability variable is -0.988 with a negative value,

which can be interpreted as an audit delay that will be reduced by -0.988.

Table 6

Multiple Linear Regression Test

Coefficients

Model

Unstandardized

Coefficients

Standardized

Coefficients

Sig.

Collinearity

Statistics

Std. Error

Beta

Toleranc

VIF

(Const

ant)

55.622

7.004

7.941

.000

Sektor

8.467

1.731

.507

4.892

.000

.850

1.177

Laba_

Rugi

1.215E-

.000

-.506

-5.020

.000

.900

1.111

Profita

bilitas

-.988

.328

-.326

-3.011

.004

.778

1.286

a. Dependent Variable: Audit_Delay

Model Feasibility Test (Test F)

It can be seen in Table 7, which shows the result of the model feasibility test (F) or

hypothesis test. The table shows the value of sig. of 0.000, which is less than the alpha

value of 0.05 (0.000 < 0.05) by the requirements of the regression model so that this study

is considered feasible. The conclusion that can be drawn is that the three independent

Analysis of the Causes of Audit Delay in IDX30 Companies on the Indonesia Stock Exchange

(IDX)

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2913

variables (company sector, company profit and loss, and profitability) affect the

dependent variable (audit delay).

Table 7

Model Feasibility Test (Test F)

ANOVA

Model

Sum of

Squares

Mean Square

Sig.

Regression

21845.147

7281.716

14.506

.000

Residual

33131.196

501.988

Total

54976.343

a. Dependent Variable: Audit_Delay

b. Predictors: (Constant), Profitabilitas, Laba_Rugi, Sektor

Individual Significant Test (T-Test)

It can be seen in Table 8, which shows the result of the individual significant test

(Test T). In this study, the significant level used was 0.025 or 2.5%. The company sector

shows a sig value of 0.000, which means < 0.025, so it is stated that the company's sector

variable affects the audit delay. The company's profit and loss shows a sig value of 0.000,

which means < 0.025, so it is stated that the company's profit and loss variable affects the

audit delay. The company's profitability shows a sig value of 0.004, which means <

0.025, so it is stated that the company's profitability variable affects the audit delay. In

this t-test, it can be concluded that the three independent variables affect the dependent

variable.

Table 8

Individual Significant Test (T-Test)

Coefficients

Model

Unstandardized

Coefficients

Standardized

Coefficients

Sig.

Collinearity

Statistics

Std. Error

Beta

Toleran

VIF

(Consta

nt)

55.622

7.004

7.941

.000

Sektor

8.467

1.731

.507

4.892

.000

.850

1.177

Laba_R

ugi

1.215E-

.000

-.506

-5.020

.000

.900

1.111

Profitab

ilitas

-.988

.328

-.326

-3.011

.004

.778

1.286

a. Dependent Variable: Audit_Delay

Coefficient of Determination Test (R^2 Test)

Shinta Amalia, Hermawan

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2914

It can be seen in Table 9, which is the result of the coefficient of determination test

(Test R^2). The resulting adjusted R square value is 0.370 or 37%. This indicates that

37% of the causes of audit delays are the company's sector, company profit and loss, and

company profitability. The remaining 63% was due to other factors or variables not in

this study.

Table 9

Coefficient of Determination Test (R^2 Test)

Model Summary

Model

R Square

Adjusted R

Square

Std. Error of

the Estimate

.630

.397

.370

22.405

a. Predictors: (Constant), Profitabilitas, Laba_Rugi, Sektor

b. Dependent Variable: Audit_Delay

Conclusion

The study consists of three independent variables, namely the company's sector,

company profit and loss, and profitability, to see the influence on the dependent variable,

namely audit delay. The object of this research is a company incorporated in IDX30 and

listed on the Indonesia Stock Exchange (IDX) within five years (2018-2022). Based on

the results and discussion in this study, it can be stated that the company's sector affects

audit delay, the company's profit and loss affect audit delay, and the company's

profitability affects the audit delay.

Analysis of the Causes of Audit Delay in IDX30 Companies on the Indonesia Stock Exchange

(IDX)

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2915

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