The Effect of Profitability, Solvency and Internal Audit on Audit Delay (Empirical Study on Mining Companies on the Indonesia Stock Exchange in 2017-2019)

This study was conducted to determine the impact of profitability, solvency and the impact of internal audit on audit delay in mining entities listed on the Indonesia Stock Exchange between 2017-2019. Purposive sampling is used in the sampling procedure, while data analysis techniques such as the classical assumption test, multiple linear regression test, t test, and coefficient of determination test are used in the data analysis. The findings demonstrate that profitability, as assessed by ROA, has a considerable impact on audit delay, as does solvency, as measured by DAR, and internal audit, as measured by audit committee size, has a significant impact on audit delay. Profitability, solvency, and internal audit all have a considerable impact on audit delay, according to the F test results. Profitability, solvency, and internal audit variables can explain 27.1 percent of audit delay, while additional variables outside this research model can explain the rest.


Introduction
The financial accounts provide clear information on which interested parties in a firm can make decisions. The financial report, which is included in the annual report, is not only a report to the General Meeting of Shareholders on the Board of Directors' and Commissioners' accountability in managing and supervising the Issuer or Public Company, but it is also a valuable source of information for investors or shareholders in the decision-making process. Issuers or public companies can invest and be supervised by their shareholders. Financial statements are also a source of information for regulators undertaking supervision in order to ensure compliance.
Financial statements can be used as a reference or basis and are useful in collecting data/information. Because it shows financial performance, changes in equity, cash flow, and assets in the company. When the financial information offered is reliable, and comparative (comparable), then the information is said to be useful. Due to the enormous number of transactions that must be audited, the complexity of the transactions, and weak internal control, the report takes a long time to be made public. As a result, audit delays are increasing. According to Thuy Lai et al. (2020), audit delay refers to the time it takes for the audit to be completed from the end of the fiscal year to the date the company issues its audit report. Because of the importance of the time period for completing the audit of financial statements (audit delay) as a factor that affects the timeliness of submitting financial statements and providing information to financial statement users, the authors believe that audit delay is an object that requires further investigation.
This study will explain how Profitability, Solvency, and Internal Audit affect Audit delay, and is expected to be able to measure the performance of company activities in terms of audit delay, and management in conducting periodic assessments.

Signal Theory
Ross was the first to create signal theory in 1977. One of the foundation theories in financial management is signaling theory. In general, signals are understood as clues from corporations regarding how they communicate with financial statement users. These signals can take a variety of forms, including those that can be viewed directly and those that require further investigation to determine (Gumanti, 2009).

Positive Accounting Theory
In this positive accounting theory, it describes the objectives and describes the current accounting process from upstream to downstream (end), and conveys the presentation of accounting information so as to maximize its delivery to other stakeholders within the company (Magdalena, 2018).

Audit Delay
The duration of the process of discontinuing the implementation of the audit of financial statements starts on December 31 until the issuance of the audit report and is used to determine audit delay (Rulick, 2012).

Profitability
Profitability concerns the company's ability to maximize profits from all entity skills and resources, including sales, asset utilization, and capital utilization (Kasmir, 2019). Profitability is often used to assess the level of managerial effectiveness. The effectiveness of management in generating the maximum profit for the organization will show good performance. Profit after tax, or Earning After Tax, is used to calculate the company's profit in this study (EAT).

Solvency
Solvency is a metric that determines how much debt a firm must carry in order to meet its obligations (Kasmir, 2019). The major focus of a solvency study is on balance sheet reactions that reflect the ability to pay off current and non-current debts. Based on the description above, the total debt to total asset ratio (TDTA) is used to assess solvency in this study, which compares the amount of debt (both short and long term) to total assets (total assets).

Internal Audit
Internal audit is an impartial assessment role that examines and assesses the internal control system, and risks, with the aim of testing and evaluating the operations carried out by the company (Tugiman, 2014).

The Effect of Profitability on Audit Delay
Profitability refers to a company's ability to make money from its overall assets. The audit procedure will take longer if the company's profitability level is getting bigger. Companies with high profits tend to attract attention and raise various questions from various parties, especially independent auditors regarding the value of the profits generated. If the value of the profit generated is much higher than that of other similar companies, it encourages the auditor to conduct a more thorough examination in relation to the company's profits.

The Effect of Solvency on Audit Delay
When a company is liquidated, its solvency refers to its capacity to meet all of its financial obligations. When a company's total debt exceeds its total assets, it is said to be unsettled. As a result, the larger the debt-to-total-assets ratio, the longer the time required to complete the yearly financial statement audit.
H2 : Solvency has a significant effect on audit delay.

The Effect of Internal Audit on Audit Delay
Internal auditors within a company are also responsible for conducting inspections and assessments of the efficiency and effectiveness of the company's operations, evaluating the implementation of internal control and risk management in accordance with company policies, and providing recommendations for improvements to the activities being audited. So that the existence of internal auditors in a company can assist external auditors in gathering audit evidence needed by external auditors in conducting audits, and so that all types of errors and fraud can be minimized before becoming external auditor findings with the presence of an internal auditor.
H3 : Internal auditors have a significant effect on audit delay

Research Methods
This research is causal and quantitative research. The subject of this study is a mining business that was listed on the Indonesia Stock Exchange (IDX) from 2017 to 2019, and the research object is profitability, solvency, and internal audit as independent variables, with audit delay as the dependent variable. The information was gathered from the IDX website and evaluated with SPSS

Research Object, Population and Sample
The population of this study are mining companies listed on the Indonesia Stock Exchange in 2017 -2019 as many as 47 companies. This writer's sample collection technique uses purposive sampling, namely the technique of determining the sample with certain criteria or considerations. Sampling was done by purposive sampling which is part of the non-probability sampling method. For members of the population who do not meet the requirements, are not selected as research samples. The following criteria are used in determining the sample: Valid N (listwise) 39 The average (mean) audit delay is .845869, which explains that the entity in submitting the audited financial statement is still in line with the stipulated provisions. For profitability, it has a mean number of .138301, indicating an increase in assets followed by an increase in operating results, which are still in fairly good condition. Solvability as measured by the debt to asset ratio with a mean value of .415312, shows a ratio of liabilities to assets of 40:60. The average internal audit is 3.179487, minimum 3,0000 and maximum 4,0000, the presence of internal auditors in a company can assist external auditors in gathering audit evidence needed by external auditors in conducting audits, and so that all types of errors and fraud can be minimized before it becomes an external auditor's findings with the presence of an internal auditor. Based on the table above, the t-test results show that the profitability variable as measured by return on assets has a significant effect on audit delay with a significance value of .024 or less than 0.05 or 5%. The solvency variable as measured by the debt to asset ratio has a significant effect on audit delay with a significance value of .016 where the significance value is less than 0.05 or 5% and the internal audit variable measured by the number of audit committees has a significant effect on the audit delay with a significance value of .031 or less than 0.05 or 5%. The ROA regression coefficient (X1) is positive and its magnitude is 0.339. That is, if ROA increases by 1 unit, then the coefficient of AD level (Y) will increase by 0.339. The coefficient is positive, meaning that there is a positive relationship between ROA and AD. The regression coefficient of DAR (X2) is negative and its magnitude is -0.113. That is, if DAR decrease by 1 unit, then the coefficient of AD level (Y) will decrease by -0.113. The negative coefficient means that there is a negative relationship between DAR and AD. The regression coefficient IA (X3) is positive and its magnitude is 0.327. That is, if IA increases by 1 unit, then the coefficient of AD level (Y) will increase by 0.337. The positive coefficient means that there is a positive relationship between IA and AD.

The Effect of Profitability on Audit Delay
Profitability (X1) as measured by ROA (Return On Assets) in this research has a significance level of 0.024 < 0.05 so that profitability has a significant effect on audit delay. The positive effect shown is that profitable entities have longer audit delays as their profits grow and the scale of their audit work grows. As a result, the auditor needs a better understanding and examination of the fairness of the achievement of these profits. This test is in line with and consistent with Fitria, (2015), Paul Adejola Adebayo (2016), Emirtuncay (2016) which states that profitability is indeed important for timely submission of annual financial statements.

The Effect of Solvency on Audit Delay
Solvency (X2) as measured by DAR (Debt to Total Asset Ratio) in this research has a significance level of 0.016 < 0.05 so solvency has a significant effect on audit delay. The results of the study show a negative effect, which means that companies that have high solvency will have lower or faster audit delays. This is because companies that have high solvency are possible to prepare quality and competent (sufficient and appropriate) audit evidence that supports the auditor's work, so the audit will be carried out quickly, and vice versa if the company does not have quality and competent audit evidence even though it has audit evidence. Even if the level of solvency is low, the audit work will still take a long time. In addition, this is also possible because the company's management can explain the reasons for the high proportion of company debt to assets owned so that it can be conveyed to interested parties. The results of this research are line with Khairun Nisak (2015), Alkhatib (2012), Khasharmeh (2010) which states that the rate of return on debt has a significant relationship with the delay in audit reports

The Effect of Internal Audit on Audit Delay
Internal audit (X3) as measured by the number of audit committees in this research has a significance level of 0.031 < 0.05 so that internal audit has a significant effect on audit delay. The positive effect means that the entity with the more audit committee has an impact on the audit waiting time, the longer the duration. As a result of this, indicating that the implementation of functions on the audit committee that have not been carried out can cause protracted and increasingly prolonged audit delays. In addition, this is because it has not been maximized in carrying out its functions and there are doubts related to independence as long as it still benefits from the entity. The results of this research are line with Putri (2015), Carslaw and Kaplan in Racmawati (2008) which states that internal audit has an impact on delays in submitting financial statements

Summary and Conclusion
Based on the results of this study, it can be stated that profitability (as assessed by ROA), solvency (as measured by DAR), and internal audit (as measured by the size of the audit committee) all have a substantial impact on audit delay, either partially or concurrently (together). The results of this study are expected to give information about the elements that affect audit delay, allowing subsequent interested parties to decide the priority of the dominating components and regulate the aspects that can affect audit delay length.
The results of this study have implications for how businesses might reduce the risk of financial reporting delays. Management is expected to conduct regular evaluations in order to maintain positive performance through direct management involvement, which can lead to corrective actions and, if necessary, revised work plans, as well as strengthen the internal audit function (supervision) in the implementation of the company's business activities.
Because of the constraints of this study, such as the small number of samples, the next researcher will need to lengthen the research interval and employ different research objects. In future research, it is also intended to use different indicators that can more clearly depict conditions when measuring these variables.