The Effect of Audit Opinion, Profitability, and Solvency on Audit Delay with Financial Distress as a Moderating Variable
Corresponding Author(s) : Tengku Muhammad Dzulfikar
Prosiding International Conference on Sustainable Innovation (ICoSI),
Vol. 3 No. 2 (2023)
Abstract
Introduction – Companies are required to disclose or report their operational activities as presented in the financial statements. However, the time taken to generate audit reports remains relatively long. Purpose – This study aims to examine and analyze the effect of audit opinion, profitability, and solvency on audit delay before and during the COVID-19 pandemic, with financial distress as a moderating variable. Methodology/Approach – This study uses secondary data from companies' financial statements in the trade, service, and investment sectors listed on the Indonesia Stock Exchange for 2018-2021. By using the purposive sampling method, the samples obtained were 103 companies. Hypothesis testing was done using the Moderated Regression Analysis (MRA) test. The testing method in this study was carried out under two different conditions, before the COVID-19 pandemic (2018-2019) and during the COVID-19 pandemic (2020-2021). Findings – The results of this study indicate that audit opinion and profitability have a negative effect on audit delay before and during the pandemic. Solvability has a positive effect on audit delay before the pandemic, whereas, during a pandemic, solvency has a negative effect on audit delay. Furthermore, financial distress could not moderate the effect of the audit opinion, profitability, and solvency on audit delays before and during the COVID-19 pandemic. Originality/ Value/ Implication – This research compares the phenomenon of audit delay before and audit delay during the COVID-19 pandemic. Thus, it can be seen whether COVID-19 causes different results on audit delays.
Keywords
Download Citation
Endnote/Zotero/Mendeley (RIS)BibTeX