ANALYSIS OF PROFITABILITY, SOLVENCY, AND LIQUIDITY ON AUDIT DELAY THROUGH THE REPUTATION OF PUBLIC ACCOUNTING FIRMS IN BANKING SECTOR COMPANIES IN INDONESIA

Abstract

This study aims to analyze the effect of profitability, solvency, and liquidity on audit delay, with the reputation of public accounting firms as an intervening variable, in banking sector companies listed in Indonesia during the 2018–2022 period. The research employs a quantitative approach using secondary data obtained from annual financial reports published by the companies. The sample was selected through purposive sampling, focusing on banks consistently listed on the Indonesia Stock Exchange during the observation period. Data were analyzed using multiple regression analysis and path analysis to test both direct and indirect effects. The results show that profitability and liquidity have a significant negative effect on audit delay, indicating that higher profitability and better liquidity conditions can shorten audit completion time. Meanwhile, solvency has a positive but insignificant effect on audit delay. Furthermore, the reputation of public accounting firms partially mediates the relationship between financial performance indicators and audit delay. These findings suggest that both financial characteristics and auditor reputation play an important role in determining the timeliness of financial reporting in the Indonesian banking industry. Keywords: Profitability, Solvency, Liquidity, Audit Delay, Public Accounting Firm Reputation