The Influence of Leverage and Business Complexity on Audit Delay: Does Company Size Matter?
DOI:
https://doi.org/10.17977/um004v12i22025p100Keywords:
Audit delay, Leverage, Business complexity, Auditor's opinion, Company sizeAbstract
Purpose: This research investigates several factors that cause audit delays in mining companies. Agency theory analyses audit delays by examining the relationship between various factors.
Method: The research analysis units numbered 200 and 40 companies were observed by sampling criteria obtained from mining companies in 2018-2022. Data analysis uses moderated regression analysis (MRA) to test hypotheses.
Findings: Based on the analysis, the research results show that high leverage causes audit delays, and a "qualified audit" opinion will encourage companies to immediately publish financial reports. Business complexity and profitability are not predictors of audit delay. In addition, company size can moderate the relationship between leverage and audit delay but not with other variables.
Originality/Value: One of the unique aspects of our research is the use of company size as a moderator. This factor, often overlooked, can significantly influence the relationship between various variables. In essence, company size serves as a barometer of a company's ability to effectively manage its assets or equity, adding a new dimension to our understanding of audit delays.
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