The Effect of Solvency, Firm Size, Age Companies on Audit Report Lag in Indonesian Company

Abstract

Audit report lag is the time span for completing an audit of annual report conducted by the auditor. The purpose of this study is to find evidence empirical factors affecting the audit report lag. Audit report lag is very important because it can have an impact on the timeliness of accounting information presentation to be used as a decision maker by managers or external parties. There is three factors can affect audit report lag, namely solvency, firm size, and age companies. The population of this research is trading companies listing on the Indonesia Stock Exchange. The number of samples obtained was 32 companies that have been determined by purposive sampling method. Test result shows that the solvency and age variables of the company have no effect against audit report lag. The firm size affects the audit report lag.

Keywords: Audit Report Lag, Solvency, Firm Size, Age Companies

DOI: 10.7176/RJFA/11-2-02

Publication date: January 31^st 2020