Latifa, Abian Julia. 2016. The Effect of Company Size, Profitability, Solvency, Industry Type, and Quality of Public Accounting Firm (KAP) on Audit Report Lag (Empirical Study of Manufacturing and Financial Companies Listing on the IDX in 2014). Thesis. Department of Accounting, Faculty of Economics, State University of Malang. Supervisor: (I) Hj. Yuli Widi Astuti, S.E., M.Si., Ak, (II) Dr. H. Cipto W, S.E., M.Pd., M.Si., Ak, CA.
Keywords: Company size, profitability, solvency, industry type, KAP quality, Audit Report Lag (ARL).
Financial statements are one of the important instruments in supporting the sustainability of a company, especially in companies that have gone public. The more rapid the development of companies that go public, the higher the demand for financial statement audits which are the main source of information for investors. Timeliness of reporting is the main qualitative attribute in financial reports, so that financial reports must be submitted on time (timely disclosure) so that they can be useful for users of financial statements in analyzing and making economic decisions. The timeliness of the publication of the company's financial statements can experience delays caused by the company's delay in issuing financial reports and the length of time the auditor completes the audit work. The length of time for completion of the audit carried out by the auditor, seen from the difference in the closing date of the financial statements to the date of the auditor's opinion in the audited financial statements.
This study aims to examine the effect of company size, profitability, solvency, industry type, and KAP quality on audit report lag. The population of this study were manufacturing and financial companies listed on the Indonesia Stock Exchange in 2014. Sampling using purposive sampling method. The sample in this study amounted to 163 companies. Consisting of 104 manufacturing companies and 59 financial companies. The analysis was carried out using multiple regression analysis.
The results showed that partially there were three variables that had a significant negative effect on audit report lag, namely the variables of company size, profitability, and industry type. Meanwhile, the variables of solvency and KAP quality have no significant effect on audit report lag. The test results simultaneously show that all independent variables have a significant effect on audit report lag with an effect of 26.5% as indicated by the Adjusted R Square value.
Based on the results of the study, it is recommended that companies continue to submit financial reports completely and on time and maintain the relevance of these financial reports. As for future researchers, they can develop variables that are thought to affect audit report lag, and can also use other proxies so that the results of these studies can be compared with this study.