Determinants of audit report lag: evidence from Palestine

Abstract

Purpose-The purpose of this paper is to employ agency theory to identify the determinants of the audit delay among Palestinian companies listed on Palestine Stock Exchange (PSE). Design/methodology/approach-Drawing on the agency theory, eight hypotheses are tested using data collected from the year 2011 annual reports for all the 46 listed companies on PSE. Multiple regression analysis was performed to identify the influence of a set of company characteristics, ownership structure variables, and corporate governance mechanisms. Findings-The result of the analysis demonstrated that the audit reporting delay is influenced by the board size, corporate size, status of audit firm, company complexity, existence of audit committee, and ownership dispersion. Research limitations/implications-The main shortcoming of the current study is that the analysis covered the Palestinian companies' annual reports for only one year. A time series analysis might give fuller and understandable picture about the audit report lag (ARL) determinants. The outcome of the study can be used by companies' managements and policy makers in Palestine to improve future disclosure. Originality/value-This paper adds to the limited audit delay literature in Middle East countries in general and Arab World in particular. This paper not only examines the determinants of the audit delay but also attempts to theorize such delay.

Determinants of audit report lag: A meta‐analysis

“…The FSN for ACSIZE is 674.03, which is greater than the CN drawer of 50. Studies that find significant and negative coefficients, however, are based on a relatively small sample size (e.g., Afify, ; Hassan, ). With regard to the audit committee meeting frequency ( ACMEET ), hypothesis H7C predicts that more frequent audit committee meetings reduce ARL.…”

“…Consequently, a larger board is often less effective in monitoring management, thereby increasing the ARL (Dimitropoulos & Asteriou, ; Lipton & Lorsch, ). Hassan () found a positive association between board size and ARL.…”

Analisis Karakteristik Perusahaan Dan Auditor Yang Mempengaruhi Keterlambatan Penyelesaian Audit Dan Dampaknya Terhadap Reaksi Investor

“…Masalah lambatnya proses audit dikenal sebagai audit delay (keterlambatan penyelesaian audit). Sebagian besar penelitian sebelumnya mendefinisikan keterlambatan penyelesaian audit sebagai rentang waktu penyelesaian audit yang diukur dari tanggal penutupan tahun buku perusahaan sampai dengan tanggal laporan audit ( (Hassan, 2016); (Mukhtaruddin, Oktarina, Relasari, & Abukosim, 2015); (Vuko & Cular, 2014); (Pourali, Jozi, Rostami, Taherpour, & Niazi, 2013); (Shulthoni, 2012); (Modugu, Eragbhe, & Ikhatua, 2012); (Iyoha, 2012); (Ismail, Mustapha, & Ming, 2012); (Banimahd, Moradzadehfard, & Zeynali, 2012); (Kartika, 2011);(Al-Ghanem & Hegazy, 2011), (Fagbemi & Uadiale, 2011); (Türel, 2010); (Kartika, 2009);(Che-Ahmad & Abidin, 2008); (Asthon, Willingham, & Elliott, 1987); (Givoly & Palmon, 1982); (Dyer & McHugh, 1975)). Rentang waktu yang dibutuhkan oleh auditor maksimal 90 hari dari tahun fiskal perusahaan, hal ini berdasarkan peraturan BAPEPAM-LK No.…”

Effects of Board Size, Board Committees Characteristics and Audit Quality on Audit Report Lags

“…Several empirical researches in accounting literature argued as to whether or not small or large board is effectively enhancing the quality of management responsibilities (Hassan, 2016). Larger board according to Akhtaruddin et al, (2009) with their collective expertise will be more capable of executing their duties and will equally abridge management control (Hussainey & Wang, 2010).…”