Are Lengthy Audit Report Lags a Warning Signal?

Blankley, Alan I.; Hurtt, David N.; MacGregor, Jason

doi:10.2308/ciia-51215

Cited by 23 publications

(26 citation statements)

References 16 publications

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“…Recently, Blankley, Hurtt, and MacGregor (2015) find evidence to suggest that audit report lag contains information about future restatement. This finding by Blankley et al (2015), not only provides support to the proponents who argued audit report lag serves as a good measure for problematic audit, but it is also incremental in predicting future risk attached to the current financial reporting.…”

Section: Literature Reviewsupporting

confidence: 59%

“…In specific, its timeliness aspect. From audit report lag, the inferred signal is predominantly as an indicator of audit efficiency (Bamber et al, 1993) or problematic audit (Blankley, Hurtt, & MacGregor, 2015). Recently, Blankley, Hurtt, and MacGregor (2015) find evidence to suggest that audit report lag contains information about future restatement.…”

Section: Literature Reviewmentioning

confidence: 99%

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Ceo’s Gender, Power, Ownership: Roles on Audit Report Lag

Azizan

2019

MAR

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This study examines the role of CEO’s gender, power and ownership on audit report lag. The rapid changes of market regulations and societal norms make CEO’s characteristics emerge as evolving risk factors for corporate governance and audit research. This raises the importance for research to understand their dynamic influences on corporate financial disclosure quality specifically, timeliness. This study hypothesises that different CEO’s characteristics set different tones to the audit discussion in the boardroom. To test the hypothesis, this study uses multiple secondary data from Compustat, Audit Analytics Execucomp and BoardEX. The CEO’s characteristics are divided to three dimensions that measure gender diversity, power and ownership concentration. This study provides evidence that both CEO’s ownership and power, which proxied by (1) industrial experience and (2) social network size are significantly associated with audit report lag. However, only the association with the CEO’s power reduces audit report lag and CEO’s ownership increases it. With regards to the gender diversity, it is only effective in reducing audit report lag if other CEO’s characteristics are also presence. Overall, the results provide support the study proposition in respect of the role of CEO’s characteristics towards promoting financial reporting timeliness.

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Section: Literature Reviewsupporting

confidence: 59%

Section: Literature Reviewmentioning

confidence: 99%

Ceo’s Gender, Power, Ownership: Roles on Audit Report Lag

Azizan

2019

MAR

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“…The auditor's expertise has an impact on the efficiency and effectiveness of the audit process (Blankley et al 2014). The auditor's broader knowledge about the client's line of business or the specifications of the type of industry, enables the auditor to identify and overcome risks in the audit process (Blankley et al, 2015). Habib (2015) states that large PAFs produce shorter ARL compared to small and medium auditor PAFs.…”

Section: External Auditors and Audit Lag Reportmentioning

confidence: 99%

The Role of Legal Compliance and Good Corporate Governance on Reducing Audit Delay on Publicly Listed Companies in Indonesia

Fujianti¹

2019

RWE

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Audit Report Lag (ARL) the completion of the audit that the length of time is measured from the date of closing of the financial year until the issuance of the audit report signed by the auditor. Benefits of the financial statements will be reduced if the report is not available on time. This study examines the Good Corporate Governance (GCG) mecanism and eksternal auditor that affect ARL including the board of ditectors, independent board of ditectors, audit committee and the external auditors and regulatory pressures. This study sampled kompas 100 companies in Indonesia Stock Exchange, with a sample of 94. This study was measured by using a Moderated regression analysis. These results indicate that Partially, the board of directors, independent board of directors have a significant effect on ARL before and after uses moderating variabel legal pressure, and the audit committe, external auditors have not a significant effect on ARL. Regulatory pressures plays a role as a moderator variable in the relationship the ARL with the GCG.

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“…In times of financial crisis where the need to boost market confidence is urgent, auditors are pressured to complete audit work in a timely manner. Besides pressure to complete audit work on time, greater audit time spent beyond the optimal level has also been found to undermine the quality of audit work resulting in a higher likelihood of a future restatement (Blankley, Hurtt, & MacGregor, 2015). As audit report lag increases, time pressure adversely affects audit judgment resulting in future revision of the audited financial statements.…”

Section: Problem Statementmentioning

confidence: 99%