The Moderating Role of Auditor Reputation on the Effect of Profitability, Solvability, and Financial Distress on Audit Delay

Hedar Rusman; Rudy; Harmoko Sukayat

doi:10.70716/ecoma.v4i3.689

Authors

Hedar Rusman Accounting Department, Faculty of Economics and Business, Nusa Bangsa University, Indonesia
Rudy Accounting Department, Indonesian Business School, Indonesia
Harmoko Sukayat Accounting Department, Faculty of Economics and Business, Nusa Bangsa University, Indonesia

DOI:

https://doi.org/10.70716/ecoma.v4i3.689

Keywords:

Audit Delay, Auditor Reputation, Financial Distress, Profitability, Solvency

Abstract

This study examines the effect of profitability, solvency, and financial distress on audit delay, and investigates the moderating role of auditor reputation. The study employs a quantitative approach using secondary data from manufacturing companies listed on the Indonesia Stock Exchange (IDX) over the 2021–2025 period. A total of 499 firm-year observations were selected through purposive sampling and analyzed using Moderating Regression Analysis (MRA). The results indicate that profitability has a significant negative effect on audit delay, while solvency and financial distress have significant positive effects. Auditor reputation is found to reduce audit delay directly. More importantly, this study reveals that auditor reputation acts as a risk buffer, weakening the impact of solvency and financial distress on audit delay, but not strengthening the effect of profitability. These findings contribute to the literature by providing a more nuanced understanding of how auditor quality interacts with firm financial conditions in determining audit timeliness, particularly in emerging market contexts.

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