The effect of audit tenure and firm size on financial reporting delays

Abstract

The timeliness of financial reporting is an important characteristic of accounting information, since historical information will affect the economic decision making process made by users of financial statements. This study aims to identify and analyze the effect of audit tenure and firm size on audit delay and its impact on timeliness. The population in this study are consumer goods companies listed on the Indonesia Stock Exchange (IDX) for the period 2014-2016. The sampling technique used in this research is purposive sampling. Based on pre-determined criteria, the sample consisted of 30 companies with observations for three years is 90 observations. The data collected is secondary data in the form of audited financial statements of the firms using a documentary method via the Indonesia Stock Exchange. The method of analysis used in this research is the outer model and the inner model through SmartPls 3.0 program. The results of this study indicate that: audit of tenure and firm size have no effect on audit delay and timeliness, and audit delay significantly influences timeliness. For further research to the authors suggest testing the financial reporting timeliness with different objects, i.e. by adding other variables that are expected to affect the financial reporting timeliness.