The Determinants of Audit Report Lag: The Mediating Effect of Auditor's Reliance in Jordan

The Determinants of Audit Report Lag: The Mediating Effect of Auditor's Reliance in Jordan

The association between corporate governance mechanisms and the reliance decision, and the impact of such decision on the timeliness of financial reporting is the subject of increasing public and regulatory interest. This study focuses, first, on examining the relationships between the effectiveness...

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Main Author: Bagulaidah, Ghassan Saeed Salem
Format: Thesis
Language:eng
eng
Published: 2012
Subjects:
HF5601-5689 Accounting
Online Access:https://etd.uum.edu.my/3503/1/s91627.pdf
https://etd.uum.edu.my/3503/8/s91627.pdf
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institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Ismail, Noor Azizi
Fadzil, Faudziah Hanim
topic HF5601-5689 Accounting
spellingShingle HF5601-5689 Accounting
Bagulaidah, Ghassan Saeed Salem
The Determinants of Audit Report Lag: The Mediating Effect of Auditor's Reliance in Jordan
description The association between corporate governance mechanisms and the reliance decision, and the impact of such decision on the timeliness of financial reporting is the subject of increasing public and regulatory interest. This study focuses, first, on examining the relationships between the effectiveness of board and audit committee and external auditor's reliance on the internal audit work. Second, it examines the impact of the reliance decision on the audit report lag. The data are obtained using secondary-data and survey-questionnaire methods. The sample size comprises 87 companies listed in Amman Stock Exchange (ASE) for the year 2009. The internal and external auditors of these companies are surveyed with a 34% response rate. Multiple regression results reveal a significant and positive relationship between the effectiveness of the audit committee and reliance decision. In addition, audit committee meetings with external auditor and audit committee’s review of internal audit function results have also a significant and positive association with reliance decision. Findings of this study also support the positive relationship between the overall quality of internal audit function and reliance decision. Regarding the impact of reliance decision on audit report lag, a significant but negative relationship between external auditor's reliance on the work of internal audit function and audit report lag is documented. This study supports the belief that the Jordanian external auditors are aware of the importance of relying on the internal audit work and evaluating the quality of this work before making the reliance decision as required by ISA 610. However, companies in Jordan still need to improve their internal audit function and support it with the necessary resources. Further, regulators in Jordan should mandate the companies to have an effective internal audit function.
format Thesis
qualification_name Ph.D.
qualification_level Doctorate
author Bagulaidah, Ghassan Saeed Salem
author_facet Bagulaidah, Ghassan Saeed Salem
author_sort Bagulaidah, Ghassan Saeed Salem
title The Determinants of Audit Report Lag: The Mediating Effect of Auditor's Reliance in Jordan
title_short The Determinants of Audit Report Lag: The Mediating Effect of Auditor's Reliance in Jordan
title_full The Determinants of Audit Report Lag: The Mediating Effect of Auditor's Reliance in Jordan
title_fullStr The Determinants of Audit Report Lag: The Mediating Effect of Auditor's Reliance in Jordan
title_full_unstemmed The Determinants of Audit Report Lag: The Mediating Effect of Auditor's Reliance in Jordan
title_sort determinants of audit report lag: the mediating effect of auditor's reliance in jordan
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2012
url https://etd.uum.edu.my/3503/1/s91627.pdf
https://etd.uum.edu.my/3503/8/s91627.pdf
_version_ 1747827588325179392
spelling my-uum-etd.35032016-04-18T08:40:38Z The Determinants of Audit Report Lag: The Mediating Effect of Auditor's Reliance in Jordan 2012-08 Bagulaidah, Ghassan Saeed Salem Ismail, Noor Azizi Fadzil, Faudziah Hanim Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5601-5689 Accounting The association between corporate governance mechanisms and the reliance decision, and the impact of such decision on the timeliness of financial reporting is the subject of increasing public and regulatory interest. This study focuses, first, on examining the relationships between the effectiveness of board and audit committee and external auditor's reliance on the internal audit work. Second, it examines the impact of the reliance decision on the audit report lag. The data are obtained using secondary-data and survey-questionnaire methods. The sample size comprises 87 companies listed in Amman Stock Exchange (ASE) for the year 2009. The internal and external auditors of these companies are surveyed with a 34% response rate. Multiple regression results reveal a significant and positive relationship between the effectiveness of the audit committee and reliance decision. In addition, audit committee meetings with external auditor and audit committee’s review of internal audit function results have also a significant and positive association with reliance decision. Findings of this study also support the positive relationship between the overall quality of internal audit function and reliance decision. Regarding the impact of reliance decision on audit report lag, a significant but negative relationship between external auditor's reliance on the work of internal audit function and audit report lag is documented. This study supports the belief that the Jordanian external auditors are aware of the importance of relying on the internal audit work and evaluating the quality of this work before making the reliance decision as required by ISA 610. However, companies in Jordan still need to improve their internal audit function and support it with the necessary resources. Further, regulators in Jordan should mandate the companies to have an effective internal audit function. 2012-08 Thesis https://etd.uum.edu.my/3503/ https://etd.uum.edu.my/3503/1/s91627.pdf text eng validuser https://etd.uum.edu.my/3503/8/s91627.pdf text eng public Ph.D. doctoral Universiti Utara Malaysia Abbott, L. J., Park, Y., & Parker, S. (2000). The effect of audit committee activity and independence on corporate fraud. Managerial Finance, 26(11), 55-67. Abbott, L.J., Parker, S., & Peters, G.F. (2004). Audit committee characteristics and restatments. Auditing:A Journal of Practice &Theory, 23(1), 69-86. 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