The Effect of Auditor Reputation, Audit Fees, and Audit Tenure on Audit Delay, with Financial Distress as a Moderating Variable, in Manufacturing Companies Listed on the Indonesia Stock Exchange
DOI:
https://doi.org/10.62872/j1hzck16Keywords:
Audit Delay, Auditor Reputation, Audit Fee, Audit Tenure, Financial DistressAbstract
This study aims to examine the effect of auditor reputation, audit fees, and audit tenure on audit delay with financial distress as a moderator. The sample consists of 99 manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2023–2025 period, with a total of 297 observations after removing 9 outliers. The analysis used Partial Least Square (PLS) with SmartPLS 4.0. The results show that auditor reputation, audit fees, and audit tenure have a significant negative effect on audit delay. Big 4 accounting firms complete audits 11.2 days faster, a 1-unit increase in Ln_Fee decreases the delay by 6.8 days, and an additional 1-year tenure decreases the delay by 2.1 days. Financial distress, proxied by the Altman Z-Score, is proven to moderate these three relationships. The advantages of Big 4 firms, high fees, and long tenure are greater in healthy companies and weaken in distressed companies because auditors become more conservative. The model has R² = 0.486, Q² = 0.461, and SRMR = 0.051. Practical implications: Regulators need to consider tiered deadlines for distressed issuers, public accounting firms need to implement risk-based pricing, and issuers should improve their financial health before turning to the Big 4.
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Copyright (c) 2026 Ego Salman, Afrizal Afrizal, Fitrini Mansur (Author)
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
