The effect of company size, profitability, and leverage on audit delay

Abstract

Purpose: This study aims to examine whether Company Size, Profitability, and Leverage affect Audit Delay in property and real estate sector companies listed on the Indonesia Stock Exchange from 2016 to 2019.

Methods: This study uses a descriptive research design and quantitative approach, analyzed by multiple linear regression using SPSS 25. It focuses on property and real estate companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019. Purposive sampling was used to select 24 companies, resulting in 96 observations. Secondary data was collected from the official IDX website.

Findings: The results showed that (1) Company size has no significant effect on audit delay. (2) Profitability has a negative and significant effect on audit delay. (3) Leverage does not have a significant effect on audit delay. (4) company size, profitability, and leverage simultaneously affect audit delay.

Practical Implications: The study indicates that property and real estate companies must prioritize profitability, significantly reducing audit delay. Financial statement efficiency is very important, while company size and leverage have no significant effect on the audit. Therefore, management is advised to increase profitability to accelerate the submission of financial statements and transparency.