The Effect of Company Age, Size, Audit Tenure, Profit Loss on the Duration of Financial Statement Audit Completion

Abstract

Purpose: This study aimed to examine the effect of firm age, firm size, audit tenure, and profit and loss on audit report lag in mining companies listed on the Indonesia Stock Exchange from 2016 to 2019.

Methods: The study utilized a sample of 17 companies, with observations taken over four years, resulting in 68 samples in total. Hypothesis testing was conducted using classical assumption tests and hypothesis testing via Eviews 9.

Findings: The results indicate that firm age has a positive and significant effect on audit report lag, while firm size and audit tenure have no effect. Additionally, profit and loss were found to have a negative and significant effect on audit report lag in mining companies listed on the Indonesia Stock Exchange from 2016 to 2019.

Practical Implications: Older companies should optimize operations to reduce audit lag, as size does not impact delays. Profit maximization is key for faster reporting.