Audit committee characteristics and audit report lag in Malaysia
Timeliness of the financial statements is one of the important aspects that concerns the users of information. The delay in publication of corporate financial statements may affect the usefulness of the information. This paper aims to investigate the relationship between the characteristics of audit...
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HF5667 Professional Ethics Auditors. |
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HF5667 Professional Ethics Auditors. Al-Qublani, Ayad Ahmed Mohammed Audit committee characteristics and audit report lag in Malaysia |
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Timeliness of the financial statements is one of the important aspects that concerns the users of information. The delay in publication of corporate financial statements may affect the usefulness of the information. This paper aims to investigate the relationship between the characteristics of audit committee: audit committee independence, audit committee overlap, tenure of chairman of audit committee, expertise of chairman of audit committee, and audit report lag of firms listed on Bursa Malaysia. Data were
collected from 139 companies in the financial year 2015. Descriptive analysis was used to provide insight into the time taken by external auditors to complete the audit work. The results show that on average, the companies took about 95 days to complete their audit report with a maximum and minimum day of 122 days and 45 days respectively. In addition, regression analysis was used to provide empirical evidence on which
variables had significant relationship with audit report lag. The results show that chairman of audit committee with accounting expertise, audit committee size, frequency of meetings of audit committee, firm size, leverage, and profitability are significantly associated with audit report lag. However, the other five variables: audit committee independence, audit committee overlap, tenure of chairman of audit
committee, auditor type and industry type were insignificantly related with audit report
lag. This study contributes to the body of knowledge by providing a good indicator of
the extent of the application of the proposed law from Securities Commission of Malaysia (The proposed draft code of corporate governance 2016) which suggests that the chair of audit committee should be a person with accounting expertise. |
| format |
Thesis |
| qualification_name |
masters |
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Master's degree |
| author |
Al-Qublani, Ayad Ahmed Mohammed |
| author_facet |
Al-Qublani, Ayad Ahmed Mohammed |
| author_sort |
Al-Qublani, Ayad Ahmed Mohammed |
| title |
Audit committee characteristics and audit report lag in Malaysia |
| title_short |
Audit committee characteristics and audit report lag in Malaysia |
| title_full |
Audit committee characteristics and audit report lag in Malaysia |
| title_fullStr |
Audit committee characteristics and audit report lag in Malaysia |
| title_full_unstemmed |
Audit committee characteristics and audit report lag in Malaysia |
| title_sort |
audit committee characteristics and audit report lag in malaysia |
| granting_institution |
Universiti Utara Malaysia |
| granting_department |
Tunku Puteri Intan Safinaz School of Accountancy (TISSA) |
| publishDate |
2016 |
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https://etd.uum.edu.my/6706/1/s817316_01.pdf https://etd.uum.edu.my/6706/2/s817316_02.pdf |
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my-uum-etd.67062021-04-05T01:48:50Z Audit committee characteristics and audit report lag in Malaysia 2016 Al-Qublani, Ayad Ahmed Mohammed Kamardin, Hasnah Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HF5667 Professional Ethics. Auditors. Timeliness of the financial statements is one of the important aspects that concerns the users of information. The delay in publication of corporate financial statements may affect the usefulness of the information. This paper aims to investigate the relationship between the characteristics of audit committee: audit committee independence, audit committee overlap, tenure of chairman of audit committee, expertise of chairman of audit committee, and audit report lag of firms listed on Bursa Malaysia. Data were collected from 139 companies in the financial year 2015. Descriptive analysis was used to provide insight into the time taken by external auditors to complete the audit work. The results show that on average, the companies took about 95 days to complete their audit report with a maximum and minimum day of 122 days and 45 days respectively. In addition, regression analysis was used to provide empirical evidence on which variables had significant relationship with audit report lag. The results show that chairman of audit committee with accounting expertise, audit committee size, frequency of meetings of audit committee, firm size, leverage, and profitability are significantly associated with audit report lag. However, the other five variables: audit committee independence, audit committee overlap, tenure of chairman of audit committee, auditor type and industry type were insignificantly related with audit report lag. This study contributes to the body of knowledge by providing a good indicator of the extent of the application of the proposed law from Securities Commission of Malaysia (The proposed draft code of corporate governance 2016) which suggests that the chair of audit committee should be a person with accounting expertise. 2016 Thesis https://etd.uum.edu.my/6706/ https://etd.uum.edu.my/6706/1/s817316_01.pdf text eng public https://etd.uum.edu.my/6706/2/s817316_02.pdf text eng public masters masters Universiti Utara Malaysia Abbott, L. J., Parker, S., & Peters, G. F. (2004). Audit Committee Characteristics and Restatements. A Journal of Practice & Theory, 23(1), 69–87. Afify, H. a. E. (2009). Determinants of audit report lag. Journal of Applied Accounting Research, 10(1), 56–86. Al-Ajmi, J. (2008). Audit and reporting delays: Evidence from an emerging market. Advances in Accounting, 24(2), 217–226. Al-baidhani, A. M. (2014). Review of Corporate Governance Bundle. 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