THE INFLUENCE OF THE INTERNAL FACTOR AND EXTERNAL AGAINST AUDIT DELAY ON BANKING INDUSTRY IN INDONESIA STOCK EXCHANGE Lia Asri Lestari 1) Misdiyono 2)

THE INFLUENCE OF THE INTERNAL FACTOR AND EXTERNAL AGAINST AUDIT DELAY ON BANKING INDUSTRY IN INDONESIA STOCK EXCHANGE Lia Asri Lestari 1) Misdiyono 2) 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 A. INTRODUCTION Needs of the company's internal and external parties on the financial statements is a common thing, because the internal or external companies each have an interest in the financial statements. With the financial reports produced by the company, is expected to help the various parties who need the information in the financial statements give a view of the decision to be made. The financial statements produced by the company is certainly expected to be presented in an accurate and timely manner, in order to not eliminate the benefits of these financial statements. Besides the presentation of the financial statements must also meet the qualitative characteristics of financial statements to make financial statements useful to users, that is understandable, relevant, reliable, and comparable. One of the criteria of the relevant properties are timely To be able to produce accurate financial statement, a number of companies, especially large companies need the services of an independent auditor to help conduct the examination of the financial statements prior to the published financial statement. The Independent Auditor should be carefully and thoroughly in conducting the inspection, so it takes longer before the published financial statement. The time difference between the date of the Penulis 1 ) adalah Mahasiswa Universitas Gunadarma Jakarta, Penulis 2 ) adalah Dosen Universitas Gunadarma Jakarta ISSN 1411 3880 31

financial statements and the audit opinion on the financial statements indicate the length of time the completion of an audit conducted by an auditor. The difference this time in audit are often named with the audit delay (Subagyo,2009). B. LITERATURE REVIEW 1. Definition of Auditing Auditing is the accumulation and evaluation of evidence on the information to determine and report the level of compliance of such information with the criteria established (Arens, 2003: 15). 2. Audit Delay The definition of the Audit delay as delivered Subagyo (2009), audit delay is the time difference between the date of the financial statement and the audit opinion on the financial statements indicate the length of time to complete the audit by the auditor. The Factors Influencing of Audit Delay a. Size of Companies Large companies tend to have a shorter audit delay compared to small companies, this is due to large-scale companies tend to face a higher external pressure to immediately deliver financial statements, it is because large-scale companies are closely monitored by investors, capital oversight, and government. b. Profitability Profitability indicate the success of company in obtaining benefits. Then, dergree of low profitability influence to audit delay. This is related to the market that can be caused a result to the announcement of losses by companies (Dewi Lestari, 2010). The indicators used to determine the profitability of a company in this research is return on assets (ROA), which compares the ratio between net income by total assets. c. Solvability Solvability measures the ability of the company to cover all of its obligations. When high levels of solvability, then the risk of failure of the company to repay the loan will also be higher, and vice versa (Kartika, 2009). Companies that experience high solvability indicates that companies experiencing financial difficulties, and this is a bad news for the company, so the company will choose to delay submit financial statements. Based on the description of solvency, in this research using the ratio of Total Debt to Total Assets (TDTA) to measure the level of solvability, which compares the ratio of total debt (both short-and long-term) to total assets (total assets). d. Auditor s Opinion The audit report is a formal tool that is used by auditor to communicate the conclusions about the audited financial statements to the parties concerned. Auditor's opinion is very important for the company or other parties who need the results of the audited financial statements (Rochimawati, 2011). As the independent has conducted examination of the financial statements, the auditor will give an opinion on the financial statements that have been audited. It is predicted that companies that obtain an unqualified audit opinion, take less faster than the companies that audit opinion other than unqualified. e. Size of KAP Size Public Accounting Firm (KAP) is a form of organization that is licensed public accountant in accordance with the legislation, which seeks in the provision of professional services in the practice of public accounting (Rachmawati, 2008). Public accountant who is generally considered to be capable of large-scale audits more ISSN 1411 3880 32

quickly, compared with the small-scale KAP. This is due to large-scale KAP than as an effort to preserve his reputation also has a greater number of employees, so that they can conduct audits more efficiently and effectively. Size KAP shows auditor affiliated with the Big Four Firm and Non Firm The Big Four. 3. The Framework of Thought The Independent Variables Internal Factors: 1. Size of Companies 1,2 2. Profitability 3,4 3. Solvability 5,6 Audit Delay The Dependent Variable External Factors: 4. Auditor's Opinion 7, 8 5. Size of KAP 9,10 Picture 2.1 The Framework of Thought a. Hypothesis Ho 1 : There is no influence size of companies partially against the audit delay. Ha 1 : There is the influence size of companies partially against the audit delay. Ho 2 : There is no influence return on asset partially against the audit delay. Ha 2 : There is the influence return on asset partially against the audit delay. Ho 3 : There is no influence total debt to total asset partially against the audit delay. Ha 3 : There is the influence total debt to total asset partially against the audit delay. Ho 4 : There is no influence auditor s opinion partially against the audit delay. Ha 4 : There is the influence auditor s opinion partially against the audit delay. Ho 5 : There is no influence size of KAP partially against the audit delay. Ha5 : There is the influence size of KAP partially against the audit delay. Ho 6 : There is no influence size of companies, ROA, TDTA, auditor s opinion, and size of KAP simultaneously against the audit delay. Ha 6 : There is the influence size of companies, ROA, TDTA, auditor s opinion, and size of KAP simultaneously against the audit delay. C. RESEARCH METHODS 1. Object Research The sampling techniques used in this research is purposive sampling method, which is based on sampling criteria or on the basis of specific consideration by researchers, who considered the elements that you want already exists in members of the samples taken. In this study the determination of criteria for the sample set as follows: 1. A company engaged in the banking industry are registered (listed) over the years 2009-2012 on the Indonesia stock exchange. 2. Financial reporting in the sample has been audited by public accountant (KAP). ISSN 1411 3880 33

This research uses secondary data, that is data in the form of financial statements of companies in the banking industry has been audited by an independent auditor, which is listed on the Indonesia Stock Exchange (BEI), obtained from the site www.idx.co.id. 2. Research variables a.the Dependent Variables Variable bound ( dependent ) used in this research is audient delay ( audly ) measured quantitative in unit of day. Audit delay is the period between the closing date of the financial year to the date of signing the audit report by the auditor. Audit delay as stated Subagyo (2009), is the difference in time between the date of the financial statement audit opinion on the financial statements indicate the length of time to complete the audit by the auditor. b.the Independent Variable The independent variables in this research consists of internal factors (the size of companies (SIZE), profitability (ROA), solvability (TDTA)), and external factors (auditor's opinion (OPINION), size KAP (SIZEKAP)). D.DISCUSSION a. Overview The Object Research This study used a sample of companies included in the banking industry, which is listed on the Indonesia Stock Exchange (BEI) for three consecutive years, that is during the years 2009-2011, obtained through the Indonesia Stock Exchange website (www.idx.co. id). That existed before population consisted of 31 banking companies, and then performed the sample selection criteria based on purposive sampling method, the sample banking industry company listed on the Stock Exchange during the years 2009-2011, and the financial statements in the sample has been audited by Public Accountant. There are two banking companies that are not registered for three consecutive years, during the years 2009-2011, so that the banking acquired 29 companies listed on the Indonesia Stock Exchange (BEI) during the years 2009-2011. b. Analysis of Data Descriptive Statistics Analysis Below is a table of the results of the Audit Delay descriptive statistics on the banking industry as follows: Table 4.1 Descriptive Statistics Audit Delay (AUDLY) Year 2009-2011 Descriptive Statistics N Minimum Maximum Mean Std. Deviation AUDLY 87 26 119 70.10 18.337 Valid N (listwise) 87 Based on the description of the resulting data, length of the audit delay that occurred at the company's banking industry in Indonesia in 2009-2011 is the average 70.10 days, and standard deviation equal to 18.337. The minimum value of 26 days at Bank OCBC NISP Tbk. in 2010, and the maximum value of 119 days on Bank Mutiara, Tbk in 2009. ISSN 1411 3880 34

c. Classical Test Assumptions 1. Test of Normality Test of normality is done to show that the samples taken from a normally distributed population. Normality test performed using the Kolmogorov-Smirnov test. Normality test aims to test whether in the regression, the dependent variable and the independent variables were normally distributed or not. Table 4.7 Test of Normality Significant value is at 0482 which is above 0.05. It shows that in the regression model, the data are normally distributed. 2.Test of Multicolinearity Multicollinearity test aims to test whether the regression found a correlation between the independent variables. A good regression model should not contain the correlations between the independent variables`(rochimawati, 2011). Table 4.8 Test of Multicolinearity All the independent variables had tolerance values above 0:10, and all variables have a value of Variance Inflation Factor (VIF) below 10. It shows that the regression model, there is no multicollinearity. ISSN 1411 3880 35

3. Test of Autoccorelation Test of Autocorrelation aims to test whether in a linear regression model there is a correlation between the error disturber in period t with an error in period t-1 (previous). Test of autocorrelation can use the Durbin-Watson test. Regression model that is free of autocorrelation is if the value of Durbin-Watson, are among the upper limit value (du) with 4-dU. Table 4.9 Test of Autoccorelation Model Summary b Adjusted R Std. Error of the Model R R Square Square Estimate Durbin-Watson 1.374 a.140.087 17.522 2.301 a. Predictors: (Constant), SIZEKAP, OPINI, TDTA, ROA, SIZE b. Dependent Variable: AUDLY Durbin-Watson value (dw) of 2301 is located between the upper limit value (du) with 4-dU. It shows that in the regression model does not occur autocorrelation. 4. Test of Heteroscedasticity Test of heteroscedasticity is used to test whether in the regression model used in inequality occurred residual variance from one observation to another observation. Test of heteroscedasticity in this research using a scatterplot, which see the value of the dependent variable (ZPRED) with residual (SRESID). Picture 4.1 Test of Heteroscedasticity On the scatterplot chart points are spread out and do not form a specific pattern. It shows that in the regression model does not happen heteroscedasticity. ISSN 1411 3880 36

d. Hypotesis Test 1. The Coefficient of Determination (R 2 ) The coefficient of determination (R2) aims to measure how much variation in the independent variables in explaining the variation the dependent variable. Determination coefficient is between zero and one (0 <R2 <1). Table 4.10 Table of Model Summary Model Summary b Adjusted R Std. Error of the Model R R Square Square Estimate Durbin-Watson 1.374 a.140.087 17.522 2.301 a. Predictors: (Constant), SIZEKAP, OPINI, TDTA, ROA, SIZE b. Dependent Variable: AUDLY Adjusted R Square value generated is equal to 0.87, it shows that 8.7% dependent variable explained by the independent variables, while the remaining 91.3% is explained by other factors. 2. Multiple Linear Regression Analysis Table 4.11 Multiple Linear Regression Analysis Coefficients a Standardized Unstandardized Coefficients Coefficients Model B Std. Error Beta t Sig. 1 (Constant) 156.625 54.299 2.885.005 SIZE -4.014 1.496 -.377-2.683.009 ROA -.553.628 -.097 -.880.381 TDTA 44.463 52.212.094.852.397 OPINI -5.051 4.101 -.128-1.232.222 SIZEKAP -.107 5.435 -.003 -.020.984 Based on the result analysis above, can be made a model of multiple regression equation as follows: AUDLY=156.625-4.014SIZE-0.553ROA+44.463TDTA-5.051OPINI- 0.107SIZEKAP+e 3. t Test ISSN 1411 3880 37

1. The Influence of Size of Companies Against Audit Delay Based on the results of testing hypothesis 1. The size of companies is partially significant to audit delay, it is known by looking at the significant value of 0009 is less than 0.05. The results of this research support the research done by Kartika (2009). However, this result contrast with the result of research Subagyo (2009). Estimated the size of companies influential against audit delay, caused large-scale companies inclined to face a higher external pressure to immediately deliver financial statements, it is because the big cmpanies are closely monitored by investors, capital oversight, and government. 2. The Influence of Return on Asset Against Audit Delay Based on the result of testing hypothesis 2. Profitability (ROA) is partially does not significantly infulence to audit delay, it is known by looking at the significant value of 0.381 is more than 0.05. The result of this research support the research done by Kartika (2009). However, this result contrast with the result of research Rachmawati (2008), that profitability (ROA) has no influence to audit delay. On this research profitability does not significantly influence to audit delay. Any large ROA obtained each company will get the same auditing standard. The research of Ani Yuliati (2011), produced the conclusion that profitability does not significantly influence to audit delay, it can be caused to the research that has been done, a lot of companies that increase profit, but the increase was not so great, Moreover there is who suffered losses. 3. The Influence of Total Debt to Total Asset Against Audit Delay Based on the result of testing hypothesis 3. Solvability (TDTA) is partilally does not significantly influence to audit delay, it is known by looking at the significant value of 0.397 is more than 0.05. The result of this research support the research done by Utami (2006). However the opposite result, that solvability significantly influence to audit delay, there is in the research Dewi Lestari (2010). The company suffered a major or minor solvability suspected will tend to be careful in presenting the financial statements related to the obligations that to fulfilled to others. Such the research of Kartika Simbolon (2009) that solvability does not significantly influence to audit delay, it may be caused in the research took several samples of banking that have a high level of solvability, but has not a shorter audit delay, and not at all influence the level of solvability, because for banking almost all asset of company came from liability. 4. The Influence of Auditor s Opinion Against Audit Delay Based on the results of testing hypothesis 4. Auditor's opinion is partially does not influence significant to audit delay, it is known by looking at the significant value of 0222 is more than 0.05. The results of this research support the research done by Dewi Lestari (2010). Auditor's opinion is partially influence audit delay, caused by completion of the audit of the financial statements, does not depend on the type of auditor's opinion, but the time taken by the independent auditors to complete the audit. Besides it can be caused by giving audit opinion is part of the KAP authority to make a statement. The reluctance of auditor to issue a qualified and management to accept the results of auditing, can occur in the environment in the structure of law and professionalism not properly formed. Research done by J. Meylisa Iskandar and Estralita T (2010), resulting in that auditor's opinion does not significantly influence to audit delay, it may caused the process of giving an opinion on the fairness of a ISSN 1411 3880 38

financial statements is the final step in the audit process, so type the opinions of any given will not affect the duration of the audit report lag that occurs. 5. The Influence of Size of KAP Against Audit delay Based on the results of testing hypothesis 5. Size of KAP is partially does not significantly influence to audit delay, it is known by looking at the significant value of 0.984 is more than 0.05. The results of this research support the research done by Kartika (2009). This result difference with the results research done by Subekti (2005), that audit delay is significantly influenced by size of KAP. Companies that use the service of an independent auditor of the Big Four need a shorter time, compared with companies that use the service of an independent auditor other than The Big Four. However, this research result that size of KAP does not significantly influence to audit delay, it can be caused either KAP of The Big Four or KAP of Non- The Big want to provide audit services are getting better. As contained in the research Subagyo (2009) that KAP of Non-The Big Four has increased the number of human resources and has improved its performance in implementing the audit plan completion time. In the research of Subagyo (2009), the quality of KAP of Non-The Big Four is not inferior to KAP of the big four. It may be caused by the different years of the research with previous researches, and increasing competition that occurs between KAP of The Big Four with KAP of Non-The Big Four. 4. F Test Table 4.13 F Test ANOVA b Model Sum of Squares df Mean Square F Sig. 1 Regression 4049.665 5 809.933 2.638.029 a Residual 24868.404 81 307.017 Total 28918.069 86 F test is used to know the whole effect (simultaneously) the independent variables to the dependent variable. In this research the F test is used to know the influence of variable from internal factors ( size of companies, ROA, TDTA) and external factors ( auditor's opinion, size of KAP) simultaneously audit delay. Simultaneously all variables, both internal factors ( size of companies, profitability, solvability) and external factors ( auditor's opinion, size of KAP), significantly influence audit delay, it is known by looking at the significant value of 0.29 is less than 0.05. E.Conclusion Conclusion The conclusions obtained in this study, these are: ISSN 1411 3880 39

1. Partially only internal factor-size of companies which significantly influence to audit delay, while the other internal factors (profitability, solvency) and external factors ( auditor's opinion, size of KAP) is partially does not significantly influence to audit delay. Large companies tend to face a higher external pressure to immediately deliver financial statements, it is because big companies are closely monitored by investors, capital oversight, and government. 2.. Simultaneously all independent variables consisting of internal factors (size of companies, profitability, solvability) and external factors (auditor's opinion, size of KAP) significantly influence to audit delay. Suggestion In this research, the authors only used five independent variables consisting of internal factors ( sizeof companies, profitability, solvability) and external factors (auditor's opinion, size of KAP) that influence to audit delay. So the suggestion for further research, may use other variables included in the internal factors and external factors on audit delay, or did the addition of the sample. Implication The implications of this research are: 1. This study can be a reference for further writing related to audit delay. 2. This research can provide information to users of financial statements in order to assist decision-making. 3. This research can be information to the auditor, about the factors that influence audit delay. Independent auditors can provide information to the company about the factors that influence audit delay, so that the company can give more attention to the factors that influence audit delay. So the audit delay is expected to diminish. REFERENCES Ani Yulianti. 2011. FAKTOR-FAKTOR YANG BERPENGARUH TERHADAP AUDIT DELAY (Studi Empiris Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Pada Tahun 2007-2008). Skripsi. Universitas Negeri Yogyakarta. Arens, Alvin.A., Ronald J.Elder., dan Mark S.Beasley. 2003. Auditing dan Pelayanan Verifikasi. Edisi Kesembilan. Jakarta: Indeks. Ashton, Robert H., John J. Willingham, and Robert K. Elliott. 1987. An Empirical Analysis of Audit Delay, Journal of Accaouting Research, Vol. 25, No. 2. Atikah, Siti dan Baiq Riffa Fathini. 2007. Pengaruh Profitabilitas, Solvabilitas, Ukuran Perusahaan, dan Opini Akuntan Terhadap Ketepatan Waktu Penyajian Laporan Keuangan Tahunan Pada Perusahaan Manufaktur Di Bursa Efek Jakarta. Jurnal Riset Akuntansi Aksioma, Vol. 6,No. 1. Dewi Lestari. 2010. Faktor-Faktor Yang Mempengaruhi Audit Delay: Studi Empiris Pada Perusahaan Consumer Goods Yang Terdaftar Di Bursa Efek Indonesia. Skripsi. Universitas Diponegoro. Harahap, Sofyan Syafri. 2011. Teori Akuntansi Edisi Revisi 2011. Jakarta: Rajawali Pers. Hardi 2010, Komponen Laporan Keuangan Yang Lengkap Beda Peraturan PSAK No.1 (1998) Dengan PSAK No.1 (2009), diakses 9 September 2012, <www.auditmepost.blogspot.com/2010/08/komponen-laporan-keuangan-yang-lengkap.html>. Indonesia Stock Exchange, Indonesia, diakses 13 April 2012, <www.idx.co.id>. Iskandar, Meylisa Januar., dan Estralita Trisnawati. 2010. Faktor-Faktor Yang Mempengaruhi Audit Report Lag Pada Perusahaan Yang Terdaftar Di BursaEfek Indonesia. Jurnal Bisnis dan Akuntansi, Vol. 12, No. 3:175-186. ISSN 1411 3880 40

Joko Sulistyo. 2011. Enam Hari Jago SPSS 17. Jakarta: Penerbit Cakrawala. Kartika, Andi. 2009. Faktor-Faktor Yang Mempengaruhi Audit Delay Di Indonesia (Studi Empiris Pada Perusahaan-Perusahaan LQ45 Yang Terdaftar Di Bursa Efek Jakarta). Jurnal Bisnis dan Ekonomi, Vol. 16, No. 1: 1-17. Kartika P. Simbolon. 2009. Analisis Faktor-Faktor Yang Mempengaruhi Audit Delay Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia. Skripsi. Universitas Sumatera Utara. Peraturan Nomor X.K.2. Kewajiban Penyampaian Laporan Keuangan Berkala, diakses 13 April 2012, <www.bapepam.go.id/old/old/hukum/peraturan/emiten/x.k.2.doc>. Rachmawati, Sistya. 2008. Pengaruh Faktor Internal dan Eksternal Perusahaan Terhadap Audit Delay dan Timeliness. Jurnal Akuntansi dan Keuangan, Vol. 10, No. 1: 1-10. Reza Diki Nisyadin. 2011. Analisis Faktor-Faktor Yang Mempengaruhi Rentang Waktu Penyelesaian Audit (Studi Kasus Pada Perusahaan Finansial Bank dan Non Bank di Bursa Efek Indonesia). Skripsi. Universitas Gunadarma. Rochimawati. 2011. Analisis Diskriminan Audit Delay Pada Industri Keuangan Di Bursa Efek Indonesia (BEI). Skripsi. Universitas Gunadarma. Shulthoni, Moch., 2012. Determinan Audit Delay dan Pengaruhnya Terhadap Reaksi Investor. Jurnal Akuntansi dan Ekonomi Bisnis, Vol. 1, No. 1. Statistik Perbankan Indonesia, diakses 29 Juli 2012, <www.bi.go.id/web/id/statistik/statistik+perbankan/statistik+perbankan+indonesia/d efault.htm?page=4&year=0>. Subagyo. 2009. Analisis Faktor-Faktor Yang Mempengaruhi Audit Delay Pada Perusahaan Go Public Sektor Property dan Real Estate. Jurnal Akuntansi, Vol. 9, No. 2: 149-168. Subekti, Imam. 2005. Faktor-Faktor yang Berpengaruh terhadap Audit Delay di Indonesia. Jurnal Ekonomi dan Manajemen, Vol.6, No. 1. The World s Biggest Public Companies, global 2000, diakses 22 Mei 2012, <www.forbes.com/global2000/list/>. Utami, Wiwik., 2006. Analisis Determinan Audit Delay Kajian Empiris Di Bursa Efek Jakarta. Bulletin Penelitian, No. 09. Wenny, Carmel Meiden., 2007. Variabel Total Lag Laporan Keuangan Perusahaan Manufaktur di BEJ. Akuntabilitas. Vol. 7, No. 1:18-22. Wirakusuma, Made Gede., 2008. Pengaruh Ketepatwaktuan Publikasi Laporan Keuangan Terhadap Kandungan Kualitas Informasi Laba Akuntansi di Pasar Modal Indonesia. Jurnal Riset Akuntansi Indonesia, Vol. 11, No. 3:286-311. ISSN 1411 3880 41