Auditee Characteristics And Audit Delay: Examining The Moderating Role Of Audit Tenure In Indonesia’s Manufacturing Sector

Abstract

This study investigates the determinants of audit delay among manufacturing firms listed on the Indonesia Stock Exchange (IDX) during the period 2019–2023. Drawing upon Agency Theory, Signaling Theory, and the Resource-Based View (RBV), this research examines how auditee characteristics, auditor characteristics, and external factors jointly affect audit delay, with audit tenure serving as a moderating variable. Using panel data from 85 firms over five years (425 firm-year observations), the study employs descriptive and inferential statistical analyses, including Fixed Effects regression and robustness tests.

The empirical findings reveal that auditee characteristics and external factors have significant positive effects on audit delay, whereas auditor characteristics show no significant influence. Furthermore, audit tenure moderates the relationship between external factors and audit delay, indicating that longer auditor–client relationships enhance the auditor’s ability to adapt to regulatory and macroeconomic changes, thereby reducing delay. However, audit tenure does not moderate the effects of auditee or auditor characteristics. The COVID-19 pandemic is also found to have a significant positive association with audit delay, confirming its disruptive impact on audit operations.

These findings extend the theoretical understanding of audit timeliness by integrating internal, external, and moderating dimensions within a unified analytical framework. The study offers practical insights for auditors, regulators, and corporate managers in improving audit efficiency and regulatory compliance. It concludes that audit delay is not merely an operational issue but a reflection of the interplay between organizational risk structures and institutional environments in emerging markets.