Corporate governance and audit lag in Nigerian quoted companies

Unnecessary audit lag or delay decreases the quality or superiority of the financial report by not allowing investors and stakeholders to have appropriate information about their investment. The audited Financial Statements are important instrument for decision making purposes. However, before it ca...

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主要作者:	Beri, Mohammed Haliru
格式:	Thesis
语言:	eng eng
出版:	2015
主题:	HF5601-5689 Accounting
在线阅读:	https://etd.uum.edu.my/5228/1/s816081.pdf https://etd.uum.edu.my/5228/2/s816081_abstract.pdf
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id	my-uum-etd.5228
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abidin, Shamharir
topic	HF5601-5689 Accounting
spellingShingle	HF5601-5689 Accounting Beri, Mohammed Haliru Corporate governance and audit lag in Nigerian quoted companies
description	Unnecessary audit lag or delay decreases the quality or superiority of the financial report by not allowing investors and stakeholders to have appropriate information about their investment. The audited Financial Statements are important instrument for decision making purposes. However, before it can be released to the public, it must be examined by the auditor. Thus, the speed of Financial Statements production is subject to the completion of audit work. The purpose of this study is to investigate the audit lag (i.e. time taken to complete the audit work) of Nigerian quoted companies, as listed on the Nigerian Stock Exchange for the period of 2012 to 2013. The examination was conducted on a pooled sample of 266 firm-years across ten industries. Data collected was analysed by the regression method and the results from the analysis show that, on average, Nigerian auditors spend 132 days to complete the audit work. The time taken is more than the time allowed for the submission of the annual return to the Nigerian Stock Exchange, i.e. 120 days. Firm size, leverage and profitability were established to be significant in explaining the audit lag. It is argued that bigger companies, in order to maintain investors’ confidence, would make their Financial Statements ready for audit earlier than smaller companies. In addition, since these companies also have better internal control, it is relative easier for their auditors to complete the audit field work. However, companies with more leverage and profitably were found to subject to longer audit work. This is perhaps due to auditors’ doubtful about the reported accounts since fraudulent reporting is not unusual in Nigeria. The following recommendations are suggested. The release of businesses’ financial report ought to be done appropriately, hence that will enable the shareholders to make the right investments decision. The supervisory agencies (e.g. SEC, NSE, CAMA) should formulate a strict and rigid polices that will force the companies to comply with the timely release of audited accounts
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Beri, Mohammed Haliru
author_facet	Beri, Mohammed Haliru
author_sort	Beri, Mohammed Haliru
title	Corporate governance and audit lag in Nigerian quoted companies
title_short	Corporate governance and audit lag in Nigerian quoted companies
title_full	Corporate governance and audit lag in Nigerian quoted companies
title_fullStr	Corporate governance and audit lag in Nigerian quoted companies
title_full_unstemmed	Corporate governance and audit lag in Nigerian quoted companies
title_sort	corporate governance and audit lag in nigerian quoted companies
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2015
url	https://etd.uum.edu.my/5228/1/s816081.pdf https://etd.uum.edu.my/5228/2/s816081_abstract.pdf
_version_	1747827888895295488
spelling	my-uum-etd.52282021-03-18T06:33:12Z Corporate governance and audit lag in Nigerian quoted companies 2015 Beri, Mohammed Haliru Abidin, Shamharir Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5601-5689 Accounting Unnecessary audit lag or delay decreases the quality or superiority of the financial report by not allowing investors and stakeholders to have appropriate information about their investment. The audited Financial Statements are important instrument for decision making purposes. However, before it can be released to the public, it must be examined by the auditor. Thus, the speed of Financial Statements production is subject to the completion of audit work. The purpose of this study is to investigate the audit lag (i.e. time taken to complete the audit work) of Nigerian quoted companies, as listed on the Nigerian Stock Exchange for the period of 2012 to 2013. The examination was conducted on a pooled sample of 266 firm-years across ten industries. Data collected was analysed by the regression method and the results from the analysis show that, on average, Nigerian auditors spend 132 days to complete the audit work. The time taken is more than the time allowed for the submission of the annual return to the Nigerian Stock Exchange, i.e. 120 days. Firm size, leverage and profitability were established to be significant in explaining the audit lag. It is argued that bigger companies, in order to maintain investors’ confidence, would make their Financial Statements ready for audit earlier than smaller companies. In addition, since these companies also have better internal control, it is relative easier for their auditors to complete the audit field work. However, companies with more leverage and profitably were found to subject to longer audit work. This is perhaps due to auditors’ doubtful about the reported accounts since fraudulent reporting is not unusual in Nigeria. The following recommendations are suggested. The release of businesses’ financial report ought to be done appropriately, hence that will enable the shareholders to make the right investments decision. The supervisory agencies (e.g. SEC, NSE, CAMA) should formulate a strict and rigid polices that will force the companies to comply with the timely release of audited accounts 2015 Thesis https://etd.uum.edu.my/5228/ https://etd.uum.edu.my/5228/1/s816081.pdf text eng public https://etd.uum.edu.my/5228/2/s816081_abstract.pdf text eng public masters masters Universiti Utara Malaysia Abdel-Meguid, A. M., Ahmed, A. S., & Duellman, S. (2013). Auditor independence, corporate governance and aggressive financial reporting: An empirical analysis. Journal of Management and Governance, 17, 283–307. Abd-Elsalam, O. H., & El-Masry, A. (2008). 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Corporate governance and audit lag in Nigerian quoted companies

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