THE INFLUENCE OF THE INTERNAL FACTOR AND EXTERNAL AGAINST AUDIT DELAY ON BANKING INDUSTRY IN INDONESIA STOCK EXCHANGE

Abstract

The needs of internal or external parties on the financial statements is a thing that often happens, because the internal or external parties of companies each have an interest in the financial statements. The financial statements produced by the company is certainly expected to help the various parties who need the information in the financial statements to give a view to the decision making that will be made.
The services of an independent auditor are generally needed to assist in the examination of the financial statement before the financial statement are published,it is done to be able to produce accurate financial statement. The auditor needs time to carry out an audit to the financial statement, the time span between the closing date of the financial year to the date of signing the audit report by the auditor, causing a condition called audit delay.
This research aims to know the influence of internal factors (size of companies, ROA, TDTA) and external factors (auditor's opinion, size of KAP) to the audit delay partially or simultaneously, at 29 companies engaged in banking industry that are listed on the Indonesia Stock Exchange in 2009-2011. The results of this research, indicate that the minimum audit delay is 26 days, whereas maximum audit delay is 119 days, with an average of audit delay is 70.10. Partially, only size of companies that significantly influence to audit delay. Whereas simultaneously, all variables, both internal factors ( size of companies, ROA, TDTA) and external factors ( auditor's opinion, size of KAP) significantly influence to audit delay.
Keywords: Audit Delay, Size of Companies, ROA, TDTA, Auditor’s Opinion, Size of KAP