The Effect Of The Size Of The KAP, Company Size, Profitability And Complexity Of The Company's Operations On Audit Report Lags In Mining Companies Listed On The Indonesia Stock Exchange For The 2014-2016 Period

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The Effect of KAP Size, Company Size, Profitability, and Complexity of the Company's Operations on Audit Report Lags in Mining Companies on the Indonesia Stock Exchange (2014-2016)

Introduction

The Indonesia Stock Exchange (IDX) is one of the largest stock exchanges in Southeast Asia, with a significant number of mining companies listed on it. The audit process is a crucial aspect of financial reporting, and the lag in audit reports can have a significant impact on the stakeholders of these companies. This study aims to investigate the effect of the size of the Public Accountant (KAP), company size, profitability, and the complexity of the company's operations on Audit Report Lags in mining companies listed on the Indonesia Stock Exchange during the 2014-2016 period.

Methodology

The method used in this study is associative research causality, which aims to establish a cause-and-effect relationship between the variables. The selection of samples is carried out by the purposive sampling method, which allows researchers to choose samples based on certain criteria. The data analysis techniques applied in this study include the search for outlier data, descriptive statistics, classical assumption tests, and hypothesis testing using multiple linear regression analysis.

Analysis of the Effect of Variables

KAP Size

The size of the KAP has an important role in the audit process because it can affect the audit quality. However, the results showed that the size of the KAP did not have a significant impact on the Audit Report Lag. This could be caused by established audit standards and procedures in large companies, so that the time to settle the audit report is not too influenced by the size of the KAP.

Company Size

The size of the company is often assumed to be related to its operational complexity. However, in this study, the company's size also did not show a significant effect on Audit Report Lag. Maybe this is caused by operational efficiency that has been implemented by large companies in their time management and resources.

Profitability

Profitability shows a significant effect on Audit Report Lag. A more profitable company tends to have greater pressure to produce fast financial reports. This can be explained by the need to meet the expectations of stakeholders and maintain reputation in the market.

Corporate Operations Complexity

The complexity of the company's operations has no significant effect on the lag audit report. Although the complexity will logically extend the audit time, in this study it seems that other factors such as the experience of the auditor or an effective audit procedure can reduce the impact of the complexity.

Conclusion

This study confirms the importance of profitability as a factor that affects Audit Report Lag. This finding shows that mining companies that are more profitable tend to have shorter audit time. Meanwhile, the size of the KAP, company size, and operating complexity do not seem to contribute to the time needed to complete the audit report. This study provides valuable insights for stakeholders in the mining industry regarding the factors that can affect the efficiency of financial reporting.

Implications of the Study

The findings of this study have several implications for stakeholders in the mining industry. Firstly, it highlights the importance of profitability as a factor that affects Audit Report Lag. This suggests that mining companies that are more profitable tend to have shorter audit time, which can be beneficial for stakeholders who require timely financial information. Secondly, it suggests that the size of the KAP, company size, and operating complexity do not seem to contribute to the time needed to complete the audit report. This implies that these factors may not be as critical as previously thought, and that other factors such as the experience of the auditor or an effective audit procedure may be more important.

Limitations of the Study

This study has several limitations that should be noted. Firstly, the study only focuses on mining companies listed on the Indonesia Stock Exchange, which may not be representative of all mining companies in Indonesia. Secondly, the study only examines the effect of KAP size, company size, profitability, and complexity of the company's operations on Audit Report Lag, and does not consider other factors that may also affect the audit process. Finally, the study only uses data from the 2014-2016 period, which may not be representative of the current market conditions.

Future Research Directions

This study provides several avenues for future research. Firstly, it highlights the need for further research on the factors that affect Audit Report Lag, particularly in the context of mining companies. Secondly, it suggests that the experience of the auditor or an effective audit procedure may be more important than previously thought, and that further research is needed to explore this topic. Finally, it highlights the need for further research on the impact of the audit process on the stakeholders of mining companies.

References

  • [List of references cited in the study]

Appendix

  • [Appendix containing additional information or data used in the study]

Table of Contents

  1. Introduction
  2. Methodology
  3. Analysis of the Effect of Variables
  4. Conclusion
  5. Implications of the Study
  6. Limitations of the Study
  7. Future Research Directions
  8. References
  9. Appendix
    Frequently Asked Questions (FAQs) about the Effect of KAP Size, Company Size, Profitability, and Complexity of the Company's Operations on Audit Report Lags in Mining Companies on the Indonesia Stock Exchange (2014-2016)

Q: What is the main objective of this study? A: The main objective of this study is to investigate the effect of the size of the Public Accountant (KAP), company size, profitability, and the complexity of the company's operations on Audit Report Lags in mining companies listed on the Indonesia Stock Exchange during the 2014-2016 period.

Q: What method was used in this study? A: The method used in this study is associative research causality, which aims to establish a cause-and-effect relationship between the variables.

Q: What data analysis techniques were applied in this study? A: The data analysis techniques applied in this study include the search for outlier data, descriptive statistics, classical assumption tests, and hypothesis testing using multiple linear regression analysis.

Q: What were the findings of this study? A: The findings of this study indicate that simultaneously, KAP size, company size, profitability, and complexity of the company's operations have a significant influence on the Audit Report Lag. However, when viewed partially, only profitability shows a significant effect, while the size of the KAP, company size, and the complexity of the company's operations do not have a significant effect on the Audit Report Lag.

Q: What is the implication of this study for stakeholders in the mining industry? A: The findings of this study have several implications for stakeholders in the mining industry. Firstly, it highlights the importance of profitability as a factor that affects Audit Report Lag. This suggests that mining companies that are more profitable tend to have shorter audit time, which can be beneficial for stakeholders who require timely financial information.

Q: What are the limitations of this study? A: This study has several limitations that should be noted. Firstly, the study only focuses on mining companies listed on the Indonesia Stock Exchange, which may not be representative of all mining companies in Indonesia. Secondly, the study only examines the effect of KAP size, company size, profitability, and complexity of the company's operations on Audit Report Lag, and does not consider other factors that may also affect the audit process.

Q: What are the future research directions based on this study? A: This study provides several avenues for future research. Firstly, it highlights the need for further research on the factors that affect Audit Report Lag, particularly in the context of mining companies. Secondly, it suggests that the experience of the auditor or an effective audit procedure may be more important than previously thought, and that further research is needed to explore this topic.

Q: What are the practical implications of this study for auditors and mining companies? A: The findings of this study have several practical implications for auditors and mining companies. Firstly, it highlights the importance of profitability as a factor that affects Audit Report Lag. This suggests that auditors should consider the profitability of the company when planning the audit process. Secondly, it suggests that mining companies should focus on improving their profitability to reduce the audit time.

Q: What are the theoretical implications of this study for the field of auditing? A: The findings of this study have several theoretical implications for the field of auditing. Firstly, it highlights the importance of considering the profitability of the company when planning the audit process. Secondly, it suggests that the experience of the auditor or an effective audit procedure may be more important than previously thought.

Q: What are the policy implications of this study for regulatory bodies? A: The findings of this study have several policy implications for regulatory bodies. Firstly, it highlights the need for regulatory bodies to consider the profitability of the company when setting audit standards. Secondly, it suggests that regulatory bodies should focus on improving the audit process to reduce the audit time.

Q: What are the future research directions for this study? A: This study provides several avenues for future research. Firstly, it highlights the need for further research on the factors that affect Audit Report Lag, particularly in the context of mining companies. Secondly, it suggests that the experience of the auditor or an effective audit procedure may be more important than previously thought, and that further research is needed to explore this topic.