The Mediating Effect of Financial Distress on Audit Tenure and Auditor Switching Towards Audit Delay

Abstract

Abstract—The aim of this study is to investigate the impact of audit tenure and auditor switching as an intervening variable on audit delay and financial distress. Manufacturing companies listed on the Indonesian Stock Exchange for the period 2016 to 2018 are the population of this analysis. This research uses purposeful sampling to obtain 14 businesses as an item. The hypothesis test is conducted using a partial least square. This study found that there is no effect of audit tenure and audit switching on audit delay. Audit tenure does not affect financial distress, but auditor switching affects financial distress. Indirectly, both audit tenure and auditor switching don't affect audit delay through financial distress.