THE EFFECT OF RETURN ON ASSET, DEBT TO EQUITY RATIO, AND AUDIT OPINION ON AUDIT DELAY IN GENERAL INSURANCE COMPANIES

Abstract

This study aims to examine the effects of Return on Assets (ROA), Debt-to-Equity Ratio (DER), and Audit Opinion on Audit Delay in general insurance companies listed on the Indonesia Stock Exchange during the period 2020–2024. This study employs a quantitative approach using secondary data obtained from the annual financial statements of the sampled companies. The population consists of 10 general insurance companies, and a saturated sampling technique was applied, resulting in a total of 50 observations. Data were analyzed using multiple linear regression with the assistance of SPSS version 20. The results show that Return on Assets has a positive and significant effect on Audit Delay, as indicated by a t-value of 2.540 and a significance level of 0.015 (< 0.05). Likewise, the Debt-to-Equity Ratio has a positive and significant effect on Audit Delay, with a t-value of 2.734 and a significance level of 0.009 (< 0.05). In contrast, Audit Opinion has a negative and significant effect on Audit Delay, as evidenced by a t-value of –3.758 and a significance level of 0.000 (< 0.05). These findings suggest that a company's profitability and leverage influence the length of the audit completion process, whereas companies receiving an unqualified audit opinion tend to experience shorter audit delays.