Effect Of Operating Complexity, Audit Tenure And Financial Distress On Audit Report Lag With The Size Of The Public Accountant Firm As The Moderating Variable

Abstract

Companies listed on the IDX are required to report their financial statements in a timely manner. But in the existing phenomenon there are still many companies that experience delays in financial reporting. This study aims to identify the factors that influence audit report lag in consumer cyclicals sector companies listed on the IDX for the 2017-2021 period. The dependent variable is audit report lag, for the independent variable is operational complexity, audit tenure, financial distress, and for the moderating variable is KAP size. This research is a type of quantitative research with multiple regression analysis method. The data used is secondary data in the form of financial reports from the official IDX website. A sample of 175 company financial reports was taken using purposive sampling method. Based on the result of statistical test, it concludes: 1. The operational complexity variable has no effect on ARL 2. The audit tenure variable has an effect on ARL 3. The financial distress variable has an effect on ARL 4. The KAP size variable is not able to moderate the effect of operational complexity on ARL 5. The KAP size variable is able to moderate the effect of operational complexity on ARL effect of audit tenure on ARL 6. Variable KAP size is able to moderate the effect of financial distress on ARL 7. Effect of operational complexity, audit tenure and financial distress simultaneously affect ARL