Mandatory financial accounting standard based international financial reporting standard adoption and audit delay

The institute of Indonesia Chartered Accountants (IAI) in 2012 issued a policy decision for mandatory International Financial Reporting Standard (IFRS) adoption applied by companies on the Indonesia Stock Exchange (IDX). This paper aims to examine whether mandatory IFRS adoption has impacted increasing or decreasing audit delay caused by increasing complexity of accounting practices. This research was designed by multiple regression model. The result of descriptive analysis shows that the average of audit delay between the period of voluntary and mandatory IFRS adoption are 77 days. The result of coefficient of determination shows R² = 0.194 in voluntary IFRS adoption and R² = 0.264 IFRS adoption mandatory. This result gives empirical evidence that audit delay increases in mandatory IFRS adoption but does not make the company late in submitting financial reports to the capital market.