Factors Affecting Audit Delay on Mining Companies Listed on The Indonesia Stock Exchange

Companies listed on the Indonesia Stock Exchange are required every year to submit an audited annual report to investors (stockholders). Its purpose is to provide information about the entity that is useful in decision making.

According to the Financial Services Authority Regulation Number 29/POJK.04/2016 concerning the Annual Report of Issuers or Public Companies article 7 paragraph 1 that "Issuers or Public Companies are required to submit an Annual Report to the Financial Services Authority no later than the end of the fourth month after the end of the financial year." If the company or issuer concerned does not do this, the person concerned will be given a sanction by the Financial Services Authority (OJK), namely a). written warning; b). fines, namely the obligation to pay a certain amount of money; c). Restrictions on business activities; d). Suspension of business; e). Revocation of business license; f). Cancellation of approval; g). Cancellation of registration.

Audit Delay

The time span for the completion of the audit by the auditor can be seen from the time difference between the date of the financial statements and the date of the audit opinion in the audited financial statements. Febrianty in Kurniawan & Henry (2015:2) states that the time difference is called audit delay. According to Apriliane (2015:43), audit delay is the length of days required by the auditor to complete his audit work, which is measured from the closing date of the financial year to the date of issuance of the audited financial statements. The longer the auditor completes the audit work, the longer the audit delay. If the audit delay is longer, the possibility of delays in submitting financial statements will be even greater.

In general, financial reporting delays are divided into three criteria, namely:

(1) Preliminary lag: The interval between the end of the fiscal year and the date of receipt of the predecessor financial statements by the capital market,

(2) Auditor's Report lag: The interval between the end of the fiscal year and the date stated in the auditor's report,

(3) Total lag: The interval between the end of the fiscal year and the date of receipt of the report to the annual publication by the market.

Factors of Audit Delay in Mining Companies

Several factors that may affect audit delay in mining companies are: company size, profitability, and auditor's opinion.

1. Company Size

According to Chasanah (2016) the size of the company can be based on the total value of assets, total sales, market capitalization, number of workers and so on. The greater the value of these items, the greater the size of the company.

Turrel and Tucay (2016) state that usually large companies are punctual in submitting their financial reports because large companies tend to have strong internal control systems so that auditors spend less time conducting control tests. Therefore, it minimizes audit delay and allows companies to immediately report to the public.

In addition, in this research sample, the mining sector mostly exports its mining products abroad, such as at PT. Timah (Persero) Tbk has a company size of 29.68 with an audit delay of 55.00 , PT. Tambang Bukit Asam Tbk has a company size of 30.20 with an audit delay of 56.00, and PT. Aneka Tambang Tbk has a company size of 30.68 with an audit delay of 64.33, all three of them have large total assets with strong corporate control so that the audit delay of these three companies can be minimized.

2. Profitability

According to Lapinayanti and Budhiarta (2018:1067) profitability is the ability of a company to generate profits. Profitability is a ratio to measure the company's ability to generate profits at a certain level of sales, assets and share capital. Profitability is the company's ability to generate profits (Murhadi, 2013).

Kartika (2011) states that companies that are able to generate profits will tend to experience shorter audit delays, so that the good news can be immediately conveyed to investors and other interested parties.

Samindo Resources Tbk has a profitability of 0.09 with an audit delay of 78.00, PT. Central Omega Resources has a profitability of 0.12 with an audit delay of 49.67, and PT. Bukit Asam Coal Mine Tbk has a profitability of 0.16 with an audit delay of 56.00. Proving that the higher the company's profitability, the lower the audit delay, it means that profitability has a significant effect on audit delay.

3. Auditor's Opinion

According to Apriliane (2015) audit opinion is an opinion on the fairness of the audited financial statements. According to Mulyadi (2002:20), there are five types of opinions on audit reports issued by auditors:

Based on SPAP (Public Accountant Professional Standards) 2013, audit opinions consist of 5 types, namely

1) Unqualified opinion

2)Unqualified Opinion Report with Explanatory language

3) Qualified Opinion

4) Adverse Opinion

5) Disclaimer of Opinion

The auditor's opinion partially has a negative effect and is significant to audit delay. This means that companies that receive an unqualified opinion will have a lower or shorter audit delay.


Gaol, Romasi Lumban dan Krista Srikandi Duha. 2021. “Faktor-Faktor Yang Mempengaruhi Audit Delay Pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia” in Jurnal Riset Akuntansi dan Keuangan Vol. 7 No. 1. Medan: Universitas Katolik Santo Thomas.

Melati. 2016. “Audit Delay Pada Perusahaan Pertambangan: Analisis dan Faktor-Faktor Penentunya” in Jurnal Akuntansi Indonesia Vol. 5 No. 1. Semarang: Universitas Islam Sultan Agung. http://jurnal.unissula.ac.id/index.php/jai/article/download/887/723