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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Main Author:	Al-Qublani, Ayad Ahmed Mohammed
Format:	Thesis
Language:	eng eng
Published:	2016
Subjects:	HF5667 Professional Ethics Auditors.
Online Access:	https://etd.uum.edu.my/6706/1/s817316_01.pdf https://etd.uum.edu.my/6706/2/s817316_02.pdf
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id	my-uum-etd.6706
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Kamardin, Hasnah
topic	HF5667 Professional Ethics Auditors.
spellingShingle	HF5667 Professional Ethics Auditors. Al-Qublani, Ayad Ahmed Mohammed Audit committee characteristics and audit report lag in Malaysia
description	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
qualification_level	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
url	https://etd.uum.edu.my/6706/1/s817316_01.pdf https://etd.uum.edu.my/6706/2/s817316_02.pdf
_version_	1747828106268246016
spelling	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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Audit committee characteristics and audit report lag in Malaysia

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