The Influence of Firm Size, Leverage, Management Change, and Audit Tenure on Audit Delay

Daffa Nadhirazka Ikhwan

doi:10.63922/ijebir.v5i04.4832

Daffa Nadhirazka Ikhwan Departemen Akuntansi, Fakultas Ekonomi Dan Bisnis, Universitas Brawijaya

DOI: https://doi.org/10.63922/ijebir.v5i04.4832

Keywords: audit delayfirm size, leverage, management change, audit tenure

Abstract

The timeliness of audited financial statements is crucial for reducing information asymmetry and supporting decision-making, yet many companies in Indonesia continue to face audit delays. This study aims to analyze the effect of firm size, leverage, management change, and audit tenure on audit delay in basic materials manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2020–2023. Using purposive sampling, 57 companies were selected, resulting in 228 firm-year observations. The study applies a quantitative causal research design with multiple linear regression analysis to test the proposed hypotheses. The results show that firm size has a significant negative effect on audit delay, indicating that larger firms tend to complete audits faster. Leverage has a significant positive effect, suggesting that higher debt levels prolong the audit process. Management change is found to have no significant impact, while audit tenure has a significant negative effect, meaning longer auditor–client relationships enhance efficiency and reduce reporting lag. These findings provide empirical evidence from a sector with strategic importance to Indonesia’s economy and highlight practical implications for regulators, auditors, and company management in improving audit timeliness and reporting quality.

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