The association between internal control quality and audit report lag in the French setting: the moderating effect of family directors

Gontara, Hela; Khelil, Imen; Khlif, Hichem

doi:10.1108/jfbm-11-2021-0139

Cited by 8 publications

(5 citation statements)

References 32 publications

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“…Audit report lag refers to the time between the end of the firm's fiscal year and the date that the audit report is issued (Ashton et al 1987;Knechel and Payne 2001;Bronson et al 2011;Krishnan and Yang 2009;Whitworth and Lambert 2014) and since the financial statements cannot be published before the audit process is completed, it has been investigated in many studies due to its importance. The findings support that this delay is influenced by the characteristics of the company such as the size of the industry, the presence of accruals, the quality of internal controls (Ashton et al 1987;Abdillah et al 2019;Gontara et al 2022), the characteristics of managers and board members such as gender, financial expertise, ability of managers, turnover of managers, religion (Harjoto et al 2015;Kalelkar and Khan 2016;Krishnan and Wang 2015;Oradi 2021;Al-Ebel et al 2020) Audit firm characteristics such as profitability, effectiveness, scope of audit work (complexity), audit staff experience, auditor tenure, auditors' motivation to provide timely reports, non-audit services, fees received by audit institutions (Bamber et al 1993;Abdillah et al 2019;Rusmin and Evans 2017;Habib et al 2019;Lai 2023;Li et al 2022) and other things such as the tone of annual reports (Teng and Han 2023), cultural dimensions (Toumi et al 2022), the report is under the ifrs standard (Zhou et al 2022). Therefore, all these cases will cause audit risk that auditors will spend different time completing the audit work when faced with these risks.…”

Section: Audit Report Lagmentioning

confidence: 57%

The Effect of Social Capital on Auditor’s Performance

Azghandi

Jabbari

Ranjbar

et al. 2023

JRFM

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This paper investigates the relationship between social capital and auditor’s performance in Iranian listed firms. The sample included 128 firms on the Tehran Stock Exchange from 2014 to 2020. The research method was descriptive-correlational, and the relationship between research variables was explained using regression models based on the panel data. The results illustrated that social capital positively correlates with auditor performance and Audit report quality. In other words, social capital decreases audit opinion shopping, audit expectation gap, internal control weakness, and audit report lag. Therefore, society’s influential assets, social capital, and audit report quality strongly influence the auditor’s performance. The auditor’s performance affects the probability of discovery and reporting material errors and misstatements. Therefore, recognizing influential factors on auditors’ performance can improve the quality of audit reports.

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Section: Audit Report Lagmentioning

confidence: 57%

The Effect of Social Capital on Auditor’s Performance

Azghandi

Jabbari

Ranjbar

et al. 2023

JRFM

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“…Jadoon et al (2021) claim that family involvement in top management has a negative impact on internal control quality and disclosure because family directors are interested in maintaining weaker internal controls to serve their own interests. Gontara et al (2022) find that the percentage of family directors mitigates the negative association between internal control quality and audit report lag because family owners exert an adverse effect on the internal control environment. As a result, auditors will perform more substantive tests, and this leads to a longer audit delay.…”

Section: Family Businesses and Internal Auditingmentioning

confidence: 84%

Family involvement in ownership and governance and internal auditing quality

Ginesti,

Santonastaso,

Macchioni

2023

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Purpose This paper aims to investigate the impact of family involvement in ownership and governance on the quality of internal auditing. Design/methodology/approach Leveraging a hand-collected data set of listed family firms from 2014 to 2020, this study uses regression analyses to investigate the impact of family ownership, family involvement on the board, family CEO and the generational stage of the family business on the quality of internal auditing. Findings The results provide evidence that family ownership is positively associated with the quality of internal auditing, while later generational stages of family businesses have the opposite effect. Additional analyses reveal that the presence of a sustainability board sub-committee moderates the relationship between generational stages of family businesses and the quality of internal auditing function. Research limitations/implications This paper does not consider country-institutional factors and other potentially family-related antecedents or governance factors that may affect the quality of internal auditing. Practical implications The results are informative for investors and non-family stakeholders interested in understanding under which conditions family-related factors influence the quality of internal auditing functions. Originality/value This study offers fresh evidence regarding the relationship between family-related factors and the quality of internal auditing and board sub-committees that moderate such a relationship in family businesses.

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“…Turning to governance and sustainability disclosure areas, different recent works pointed out the relevance of this perspective. For example, Gontara et al (2023) explore the relationship between internal control quality and audit report lag. Authors also investigate the influence of family directors on this relationship.…”

Section: Governance Factors That Influence the Disclosure's Propensitymentioning

confidence: 99%

Sustainability performance disclosure and family businesses: a perspective article

Caccialanza

2024

JFBM

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PurposeThe deeper understanding of the disclosure of external and internal dynamics of family firms necessarily places the issue of sustainability as one of the most pressing needs from both a research and managerial perspective. Therefore, this perspective article contributes to the debate of sustainability performance disclosure in family firms, proposing a research agenda.Design/methodology/approachThis study has organized the discussion around those elements that most significantly impact the propensity to disclose, with a specific focus on the interconnections and interrelations within them. The proposed research agenda is developed around three key elements: “how” firms disclose, “the reason why” they do it and “what” disclose of their performance(s).FindingsTo better understand “how” family firms should disclose their performance, it is suggested to engage in proactive stakeholder engagement to preserve long-term socioemotional wealth. “The reason why” for disclosure is still associated with the legitimization of family firms from an economic, social and environmental point of view. Finally, the “what” depends on several factors, such as the regulatory framework and the market involved.Practical implicationsThis paper contains suggestions for family firm managers, consultants and policymakers that are approaching corporate social responsibility (CSR) and non-financial reporting or sustainability disclosure overall, providing an overview of relevant factors influencing this transition process.Originality/valueThis paper suggests a logical framework to combine these three elements of the debate as strictly interrelated to foster the sustainability performance disclosure of family firms.

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The association between internal control quality and audit report lag in the French setting: the moderating effect of family directors

Cited by 8 publications

References 32 publications

The Effect of Social Capital on Auditor’s Performance

The Effect of Social Capital on Auditor’s Performance

Family involvement in ownership and governance and internal auditing quality

Sustainability performance disclosure and family businesses: a perspective article

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