The effect of company size, complexity of company operations, and industry type on audit delay

Abstract

Purpose: This study was to determine how the effect of company size, complexity of company operations and type of industry on audit delay. in consumer goods and banking industry sector companies listed on the Indonesia Stock Exchange (IDX) with a research period of 2017-2019.

Methods: This research is a quantitative study with a causal associative design. The sample was taken using purposive sampling method, which included 71 companies. The data used comes from secondary sources, with data collection carried out through non-participant methods. Data processing was carried out using SPSS version 25 software.

Findings: The study shows that company size and complexity of company operations hurt audit delay because auditors maintain a professional attitude and manage time budgets. In contrast, industry type has a positive influence on audit delay, mainly due to differences in the type of inventory and complexity of operating activities, especially in non-financial companies.

Practical Implications: This study highlights the importance of companies paying attention to factors that affect the speed of audit completion. Companies should ensure auditors get sufficient information and support, as well as manage the complexity of operations and adapt to industry characteristics. Thus, it is expected that delays in financial reports can be reduced, which will increase transparency and stakeholder trust.