Audit delay and its implication for fraudulent financial reporting : a study of companies listed in the Indonesian stock exchange

Abstract

This research examines the impact of company size, profit or loss, and information system toward audit delay in companies listed in the Indonesia Stock Exchange. Additionally, it also scrutinizes the implications of audit delay to fraudulent financial reporting. The population of the study includes the LQ 45 companies registered in the Indonesian Stock Exchange in the period of 2010-2014. Purposive sampling technique was employed in the study, involving the total sample of 90 companies. The data analysis used Amos software. The results of the study indicate that the information system, company size, and operation loss and profit have significant influence towards audit delay. Furthermore, it is revealed that audit delay have significant influence towards fraudulent financial reporting system.