Client Attributes and the Audit Report Lag in Nigeria
AbstractThis study examines the eff ect of client attributes on the audit report lag of listed firms in Nigeria during the period 2010 – 2015. We found that fi rm size, company age and profitability have a signifi cant impact on the audit report lag. However, auditor type remained signifi cant in our estimation. It is recommended that the government should enforce stringent policies and regulations to reduce the audit report lag of companies in Nigeria. In addition, the Nigeria Stock Exchange, Securities and Exchange Commission, Financial Reporting Council of Nigeria and the Central Bank of Nigeria should ensure strict compliance with fi nancial reporting rules and regulations. Professional accounting bodies should also encourage audit firms to complete the audit engagement within a reasonable time period.Keywords: Audit report lag, big4 firms; client age; client size; profi tability; Nigeria.
Abdulla, J. Y. A. (1996).The timeliness of Bahraini annual reports. Advances in International
Accounting, 2 (9), 1-4.
Ahmed, K. (2003). The timeliness of corporate reporting: A comparative study of South Asia.
Advances in International Accounting, 16, 17-44.
Ashton, R. H., Graul, P.R, & Newton, J. D. (1989). Audit delay and the timeliness of corporate
reporting, Contemporary Accounting Research, 5 (2), 657-673.
Ashton, R. A., Willingham, J. J., & Elliott, R. K. (1987). An empirical analysis of audit delay.
Journal of Accounting Research, 25(2), 275–292.
Al–Ajmi, J.(2008). Audit and reporting delays: Evidence from an emerging market. Advances
in Accounting, 24(2),217-226.
Almosa, S. A & Alabbas, M. (2008). Audit delay: Evidence from listed joint stock companies in
Saudi Arabia. Working paper, King Khalid University.
Azman, H., & Kamaluddin, A. (2012, March). Corporate governance mechanisms and
intellectual capital disclosure in Malaysian GLCs. In 3rd International Conference On
Business and Economic Research (3rd ICBER 2012) Proceeding (pp. 12-13).
Carslaw, C. A., & Kaplan, S. E. (1991). An examination of audit delay: Further evidence from
New Zealand. Accounting and Business Research, 22(85), 21-32.
Courtis, J. K, (1976). Relationship between timeliness in corporate reporting and corporate
attributes, Accounting and Business Research,7(25), 45-76.
Dibia., N. O & Onwuchekwa., J. C. (2013). An Examination of the audit report lag of companies
quoted n Nigerian stock exchange. International Journal of Business and Social Research,
Engel, E., Gordon, E. &Hayes, R. (2002). The roles of performance measures and monitoring
in annual governance decisions in entrepreneurial fi rms. Journal of Accounting Research,
Fagbemi,. T. O & Uadiale, O. M (2011).An appraisal of determinants of timeliness of audit
report in Nigeria: Evidence from selected quoted companies. Proceedings 2011 New
Orleans International Academic Conference, R.C. Clute and Clute, D. M. (eds.), 355 – 372.
Published by Clute institute, New Orleans, U.S.A.
Habbash, M. (2010). The eff ectiveness of corporate governance and external audit on
constraining earnings management practice in the UK. Doctoral Dissertation, Durham
Hope, Ole-K & langli, J.C. (2008). Auditor independence in a private fi rm and
low litigation risk setting. Paper presented in a Workshop at the Norwegian School of
Economics and Business Administration (NHH), Norway.
International Accounting Standard Board (2008). Retrieved from http://iasb.org/
Iyoha, F.O. (2012). Company attributes and the timeliness of fi nancial reporting in
Nigeria. Business Intelligence Journal 5(1), 1-6.
Jaggi, B. &Tsui, J. (1999). Determinants of audit report lag: Further evidence from Hong
Kong. Accounting and Business Research, 30 (1), 17-28.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the fi rm: Managerial behavior, agency
costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Karuna, C. (2009). Industry attributes and their infl uence on managerial pay and the use of
performance measures. Journal of Accounting and Economics, 43(2), 275-29.
Leventis, S., Weetman, P. & Caramanis, C. (2005). Determinants of audit report lag: Some
evidences from the Athens stock exchange. International Journal of Auditing, 9 (1), 45-48
Modugu, P. K., Erahbhe., E. & Ikhatua., O. J. (2012). Determinants of Audit Delay in Nigerian
Companies: Empirical Evidence. Research Journal of Finance and Accounting. 2 (3), 3-9.
Newton, J. D., & Ashton, R. H. (1989). The association between audit technology and audit
delay. Auditing: A Journal of Practice and Theory, 8 (Supplement), 22–37.
Ng, P.P. H. & Tai, B.Y. K. (1994). An empirical examination of the determinants of audit
delay in Hong Kong. British Accounting Review, 26(1), 43-59.
Oladipupo, A.O. (2011). Impact of corporate international linkage on the incidence of audit
delay in Nigeria. Journal of Research in National Development. 1 (9), 24-32.
Owusu – Ansah, S. & Yeoh, J. (2005). The eff ect of legislation on corporate disclosure practices,
Abacus, 41 (1), 1-19.
Shukeri, S. N., & Islam, M. A. (2012). The determinants of audit timeliness: Evidence from
Malaysia. Journal of Applied Sciences Research, 8(7). 191-200
Shukeri, S. N., & Nelson, S. (2010). Timeliness of Annual Audit Report: Some Empirical
Evidence from Malaysia. Paper presented at the Entrepreneurship and Management
International Conference (EMIC 2) Kangar, Perlis Malaysia. Retrieved from http://ssrn.com/
Soltani, B. (2002). Timeliness of corporate and audit reports: some empirical evidence in the
French context, The International Journal of Accounting, 37, 215-246.
Yunos, R. M., Smith, M., Ismail, Z., & Ahmad, S. A. (2011). Inside concentrated owners, board
of directors and accounting conservatism. Annual Summit on Business and Entrepreneurial
Studies. Proceeding, Malaysia
- Copyright of all the submissions to the Market Forces will remain to the contributors.
- Anyone is allowed to distribute, remix, tweak, and build upon his/her work, even commercially, as long as it is credited/cited to the original contributors of the Market Forces.