Abnormal Audit Delay and Earnings Quality in Nigerian Banking

Abstract

Abstract:The objective of this study is to ascertain the relationship abnormal audit delay and earnings quality in the Nigeria. The study focused on the Nigerian banking sector. The Ordinary Least Square statistical technique was adopted. Eleven banks were selected using the simple random sampling technique. The period under review is eleven years from 2005-2015. The results showed that earnings quality has a negative relationship with abnormal audit delay. The study recommended that management should be prohibited from constant changing of accounting calculation that can cause material discrepancy between the auditor and client regarding accounting practices.

Impact of corporate board and external audit attributes on earnings quality: Experience from Nigeria quoted foods and beverages firms

“…The probability of detection to auditor competence and probability of revelation is associated with auditor independence as large accounting firms have created trade mark to keep their reputations and have also maintained their reputations by delivery of high-quality audit (Dabor & Dabor 2015). They claimed that lack of financial affiliation with clients makes bigger auditors more independent.…”

“…The recent audit failures that swept across the world somewhat recently made users of audited financial reports to give occasion of doubt about the reliability of earnings declared by firms and the ability of auditors to successfully abridge the management sub-optimal behaviour (Dabor and Dabor 2015).The reported instances of failure of some financial institutions have made earnings quality a significant worry among financial experts. The most germane argument of these contentions is that auditors have tasks to carry out in improving earnings quality.…”

The Audit Quality and Audit Delay: Evidence from Indonesia

“…Givoly (1982) states that audit delay is caused by a material mismatch between the auditor and the client regarding accounting practices and accounting numbers calculation, called abnormal audit delay. Abnormal audit delay is a measurement of audit delay that cannot be identified by reviewing the determinant factors (Dabor & Uyagu, 2018). Audit delay is the constraint that occurs during the audit process, such as inefficiency in issuing financial reports (Super & Shil, 2019).…”

“…The Securities and Exchange Commission released Form 10-Q, which requires a period after the end of the state territory reporting year to release independent auditor reports with a classification of 3 categories within 60 days, 75 days, and 90 days to the legislature (Fischer & Marsh, 2018). The Security and Exchange Commission (SEC) in Nigeria reduced the delay in financial statements from 6 months to 3 months to meet the demands of the stakeholder (Dabor & Uyagu, 2018). The General Auditing Commission (GAC) Act, 2014 in Liberia in clause 37 (sub-section of 2), and the Public Financial Management (PFM) Act, 2009 mandate the Ministry of Finance and Development Planning that no later than four (4) months after the end of the fiscal year associated with the audit statement in its final calculation (Fully & David, 2020).…”

Does Audit Delay Enhance Financial Report Quality: Evidence from Nigerian Listed Non-Financial Institution?

“…Therefore, it is germane for potential investors to have access to timely and quality financial reports to make a profitable investment decision. The study contributes to knowledge by adding to the limited archival literature in Nigeria, especially in the nonfinancial sector (Dabor & Uyagu, 2018). Archival literature on finance and auditing has examined firm-specific (e.g., Adebayo & Adebiyi, 2016;Efobi & Okougbo, 2014;Ibadin et al, 2012;Muhammad, 2020;Oraka et al, 2019) and audit-specific (Abdillah, 2019;Muhammad, 2020) determinants of financial reporting timeliness.…”