Risk management committee characteristics and audit report lag: evidence from Malaysia

The timeliness of audited financial reporting is valuable to deliver relevant information to stakeholders at the appropriate time, which will alleviate the decisions-related uncertainty, and also represents an indicator of the quality of corporate transparency. While audit delay adversely affects th...

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Main Author:	Abdellatif Ismaiel, Abdelhamid Elsayed
Format:	Thesis
Language:	eng eng eng
Published:	2020
Subjects:	HD61 Risk Management
Online Access:	https://etd.uum.edu.my/9530/1/s824249_01.pdf https://etd.uum.edu.my/9530/2/s824249_02.pdf https://etd.uum.edu.my/9530/3/s824249_references.docx
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id	my-uum-etd.9530
record_format	uketd_dc
spelling	my-uum-etd.95302023-10-18T00:43:41Z Risk management committee characteristics and audit report lag: evidence from Malaysia 2020 Abdellatif Ismaiel, Abdelhamid Elsayed Shafie, Rohami Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HD61 Risk Management The timeliness of audited financial reporting is valuable to deliver relevant information to stakeholders at the appropriate time, which will alleviate the decisions-related uncertainty, and also represents an indicator of the quality of corporate transparency. While audit delay adversely affects the delivery of timely financial statements. Given that effective board committees represent the major internal corporate governance mechanisms, this highlights the potential effects of the risk management committee (RMC), as a sub-committee, on the determination of audit report lag (ARL). Hence, the study aims to investigate the association between the RMC characteristics; RMC size, RMC independence, RMC diligence (meetings), and accounting and industry expertise of the RMC chairperson with ARL. Drawing on the agency theory, four hypotheses are tested using data collected from the year 2018 annual reports for the 184 non-financial listed companies, which compose a board-level RMC, on Bursa Malaysia. The descriptive results show that the extent of ARL for the sample selected is an average of 97 days and ranges from a minimum period of 45 days to a maximum period of 122 days. Ordinary Least Square (OLS) regression was employed to prove the hypotheses. The results reveal that RMC diligence, accounting and industry expertise of the RMC chairperson, corporate size, investment opportunities, and nonaudit fees are significantly and negatively associated with ARL, while firm performance (loss) has a significantly positive relationship with ARL. Meanwhile, RMC size, RMC independence, board size, audit committee meetings, financial condition, auditor type, and audit fees are insignificantly related to audit delay. The study empirically contributes to the existing literature regarding ARL, especially on the influences of RMC characteristics on ARL. Practically, it also provides useful information for policymakers and practitioners to pay more attention to the vital role of well-structured and functioning RMC in improving the timeliness of financial reporting. 2020 Thesis https://etd.uum.edu.my/9530/ https://etd.uum.edu.my/9530/1/s824249_01.pdf text eng public https://etd.uum.edu.my/9530/2/s824249_02.pdf text eng public https://etd.uum.edu.my/9530/3/s824249_references.docx text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Shafie, Rohami
topic	HD61 Risk Management
spellingShingle	HD61 Risk Management Abdellatif Ismaiel, Abdelhamid Elsayed Risk management committee characteristics and audit report lag: evidence from Malaysia
description	The timeliness of audited financial reporting is valuable to deliver relevant information to stakeholders at the appropriate time, which will alleviate the decisions-related uncertainty, and also represents an indicator of the quality of corporate transparency. While audit delay adversely affects the delivery of timely financial statements. Given that effective board committees represent the major internal corporate governance mechanisms, this highlights the potential effects of the risk management committee (RMC), as a sub-committee, on the determination of audit report lag (ARL). Hence, the study aims to investigate the association between the RMC characteristics; RMC size, RMC independence, RMC diligence (meetings), and accounting and industry expertise of the RMC chairperson with ARL. Drawing on the agency theory, four hypotheses are tested using data collected from the year 2018 annual reports for the 184 non-financial listed companies, which compose a board-level RMC, on Bursa Malaysia. The descriptive results show that the extent of ARL for the sample selected is an average of 97 days and ranges from a minimum period of 45 days to a maximum period of 122 days. Ordinary Least Square (OLS) regression was employed to prove the hypotheses. The results reveal that RMC diligence, accounting and industry expertise of the RMC chairperson, corporate size, investment opportunities, and nonaudit fees are significantly and negatively associated with ARL, while firm performance (loss) has a significantly positive relationship with ARL. Meanwhile, RMC size, RMC independence, board size, audit committee meetings, financial condition, auditor type, and audit fees are insignificantly related to audit delay. The study empirically contributes to the existing literature regarding ARL, especially on the influences of RMC characteristics on ARL. Practically, it also provides useful information for policymakers and practitioners to pay more attention to the vital role of well-structured and functioning RMC in improving the timeliness of financial reporting.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Abdellatif Ismaiel, Abdelhamid Elsayed
author_facet	Abdellatif Ismaiel, Abdelhamid Elsayed
author_sort	Abdellatif Ismaiel, Abdelhamid Elsayed
title	Risk management committee characteristics and audit report lag: evidence from Malaysia
title_short	Risk management committee characteristics and audit report lag: evidence from Malaysia
title_full	Risk management committee characteristics and audit report lag: evidence from Malaysia
title_fullStr	Risk management committee characteristics and audit report lag: evidence from Malaysia
title_full_unstemmed	Risk management committee characteristics and audit report lag: evidence from Malaysia
title_sort	risk management committee characteristics and audit report lag: evidence from malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2020
url	https://etd.uum.edu.my/9530/1/s824249_01.pdf https://etd.uum.edu.my/9530/2/s824249_02.pdf https://etd.uum.edu.my/9530/3/s824249_references.docx
_version_	1783729410689466368

Risk management committee characteristics and audit report lag: evidence from Malaysia

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