The Influence Of Firm Size, Audit Delay, And Audit Committee On Audit Quality In Indonesian Energy Sector Companies

Wiraganangtama Aptafaiqna Bhanu Rasendriya; Augustpaosa Nariman

doi:10.55681/economina.v5i5.2329

Authors

Wiraganangtama Aptafaiqna Bhanu Rasendriya Tarumanagara University, Jakarta , Indonesia
Augustpaosa Nariman Tarumanagara University, Jakarta , Indonesia

DOI:

https://doi.org/10.55681/economina.v5i5.2329

Keywords:

Firm Size, Audit Delay, Audit Committee, Audit Quality, Energy Sector, Discretionary Accruals

Abstract

This study examines the effects of firm size, audit delay, and audit committee on audit quality within energy sector companies listed on the Indonesia Stock Exchange (IDX) over the 2022–2024 period. The energy sector was selected due to its high operational complexity and substantial asset base, making audit quality critically important. The research population comprises all energy firms listed on the IDX, with a final sample of 102 firm-year observations obtained through purposive sampling. Audit quality is proxied by discretionary accruals using the Modified Jones Model. Firm size is measured by the natural logarithm of total assets, audit delay is calculated as the number of days between the fiscal year-end and the audit report date, and audit committee effectiveness is captured by meeting frequency. Data analysis employs multiple linear regression after satisfying classical assumption tests. The results reveal that firm size has a significant negative effect on audit quality. Meanwhile, audit delay and audit committee show no significant influence. These findings suggest that the complexity inherent in larger firms poses challenges for auditors, while the role of audit committees remains largely symbolic. This research contributes to the auditing literature and offers insights for regulators and corporate management.

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