The Effects of Bankruptcy Probability, Auditor Switching and Company Size Toward Audit Delay

Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 19 March 2019

The Effects of Bankruptcy Probability, Auditor Switching and Company Size Toward Audit Delay

Gitta Destalya Adrian Nova, Azwardi, Tertiarto Wahyudi

Sriwijaya University, Indonesia

Download Full-Text Pdf

10.31014/aior.1992.02.01.75

Abstract

The purpose of this study was to find out the effects of the probability of bankruptcy and auditor switching toward audit delay, with the size of the company on manufacturing companies listed in Indonesia Stock Exchange (IDX) in 2014-2016 as moderating variable. Data analysis method used was Moderated Regression Analysis (MRA). This method was chosen because of the compatibility between analytical tools and the variables under study. The purposive sampling method was used in this study. The number of samples of 97 companies that meet the criteria of the sample with the observation of 3 years and reduced outlier test 93 companies made the final sample were 198 companies. The results showed that the probability of bankruptcy and auditor switching had significant effects on audit delay. In addition, company size weakens not only the effect of bankruptcy probability on the audit delay but also the effect of effect auditor switching to audit delay.

References

  1. Adnan, M. A. dan E. K. (2000). Health Level Analysis of Companies to Predict Bankruptcy Potential with the Altman Method Approach (Case in Ten Companies in Indonesia).

  2. Almilia, SL, & Herdinigtyas, W. (2005). Against Camel, Ratio Analysis Predicts Troubled Condition On Banking Institution Period 2000-2002. Journal of Accounting and Finance, 7 (2), 131-147. https://doi.org/10.9744/jak.7.2.pp. 131-147

  3. Armansyah and Kurnia. (2015). Effect of Company Size, Profitability, And Audit Opinion Auditor Against Delay. Science And Accounting Research, 4 (10), 1-16.

  4. Carslaw, Capn, & Kaplan, SE (1991). An Examination of the Audit Delay: Further Evidence from New Zealand. Accounting and Business Research, 22 (December), 37-41.

  5. Dyer and McHugh. (1975). The Timeliness of the Australian Annual Report. Journal of Accounting Research, 13 (2), 204. https://doi.org/10.2307/2490361.

  6. Eisenhardt, KM (1989). Building Theories from Case Study Research. Academy of Management Review, 14 (4), 532-550.

  7. Febrianto, R. (2009). Substitution auditors and public accounting firms. Retrieved December 24, 2017, from http://rfebrianto.blogspot.com/2009/05/pergantian%0A-%0Aauditor%0A-%0Adan%0A-%0Akantor%0A-%0Aakuntan.html

  8. Ghozali, I. (2016). Multivariate Analysis Application with IBM SPSS 23 Program edition 8. Semarang: Dipenogoro University Publishing Agency.

  9. Giri, EF (2010). Influence Tenure Public Accounting Firm (Kap) And Reputation Kap on the Quality Audit: The Case of Mandatory Auditor Rotation in Indonesia. Accounting National Symposium XIII Purwokerto, 1-26. Retrieved February 14, 2018, from www.sna13purwokerto.com.

  10. Gosal, JA and HL (2016). The Influence Of Probability Of Bankruptcy And Audit Firm Size To Audit Delay: Evidence In Indonesia Company Listed In Indonesia Stock Exchange from 2012 to 2014. Journal of Economics and Business, 9 (2), 16.

  11. Jensen, MC, and Meckling, WH (1976). The Theory of the Firm: Managerial Behavior, Agency Cost and Ownership Structures, 3, 305-360.

  12. Kartika, A. (2009). Factors Affecting Audit Delay in Indonesia (Empirical Study on LQ 45 Top Companies Listed on the Jakarta Stock Exchange). Journal of Business and Economics, 16 (1), 1-17.

  13. Lucyanda, J., & Sabrina Paramitha Nura'ni. (2013). Testing Factors Influencing Audit Delay, (8).

  14. Modugu et al. (2012). Determinants of Audit Delay in Nigerian Companies: Empirical Evidence. Research Journal of Finance and Accounting, 3 (6), 2222-2847. Retrieved Maret 12, 2018 from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.911.6314&rep=rep1&type=pdf.

  15. Pratini, IGAAI. PA (2013). The phenomenon of change of auditors in the Indonesia Stock Exchange. E-Journal of Accounting, University of Udayana 5.2, 2, 470-482.

  16. Prawibowo, T. (2014). Analysis of Effect Against Competition Agency Cost. Thesis, 68.

  17. Setiawan, H. (2013). The influence of the size of the company, the reputation of the auditor, the audit opinion, profitability and solvency audit delay. Thesis, Faculty of Economics and Business Syarif Hidayatullah State Islamic University Jakarta.

  18. Setyahadi, RR (2012). Bankruptcy Probability Influence On Delay Audit. Thesis, University of Udayana.

About Us

The Asian Institute of Research is an online and open-access platform to publish recent research and articles of scholars worldwide. Founded in 2018 and based in Indonesia, the Institute serves as a platform for academics, educators, scholars, and students from Asia and around the world, to connect with one another. The Institute disseminates research that is proven or predicted to be of significant influence for the general public.

Contact Us

Please send all inquiries to the email:

editorial@asianinstituteofresearch.org

Business Address:

5th Floor, Kavling 507, Fajar Graha Pena Tower, Jl. Urip Sumohardjo No.20, Makassar, Indonesia 90234

Copyright © 2018 The Asian Institute of Research. All rights reserved

Stay Connected

  • Instagram - Black Circle
  • Facebook - Black Circle
  • LinkedIn - Black Circle