Key audit matters, audit partner tenure and audit reporting lag: Evidence from Malaysia

Audit timeliness is one of the most important factors that determine timeliness of financial reporting. Undue delay in audit report would cause delay in financial reporting and consequently affect decision making of the users of financial statement. This study investigates the relationship between K...

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Main Author:	Khoo, Vivian
Format:	Thesis
Language:	eng eng eng
Published:	2019
Subjects:	HF5667 Professional Ethics Auditors.
Online Access:	https://etd.uum.edu.my/9645/1/s819664-01.pdf https://etd.uum.edu.my/9645/2/s819664-02.pdf https://etd.uum.edu.my/9645/3/s819664-references.docx
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id	my-uum-etd.9645
record_format	uketd_dc
spelling	my-uum-etd.96452022-10-04T01:39:42Z Key audit matters, audit partner tenure and audit reporting lag: Evidence from Malaysia 2019 Khoo, Vivian Shafie, Rohami Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HF5667 Professional Ethics. Auditors. Audit timeliness is one of the most important factors that determine timeliness of financial reporting. Undue delay in audit report would cause delay in financial reporting and consequently affect decision making of the users of financial statement. This study investigates the relationship between Key Audit Matters (KAM) category, which has longer audit reporting lag (ARL) and ARL. This study also examines the moderating effect of audit partner tenure on the relationship between KAM category, which has longer ARL and ARL. The data was collected from 395 companies with financial year end of 31 December 2016 listed on Bursa Malaysia Main Board. The sample was approximately 50 percent from the population of total 795 companies. Descriptive statistics showed that on average, the companies took approximately 92 days to complete their audit report. From mean t-test analysis and univariate analysis, KAM category-receivables was found to be positive and statistically significant in predicting ARL. Using ordinary least squares regression analysis, it was found that KAM category-receivables has a positive and significant relationship with ARL. However, audit partner tenure did not moderate the KAM category-receivables-ARL relationship. Further analysis suggested the potentiality of long-tenured audit partners from Big 4 to reduce ARL. The study shall be interest of the auditors, regulators and management of companies. The findings of the study would help auditors in developing a more realistic audit strategy and alleviate Bursa Malaysia’s investigation and enforcement actions, other than serving as a justification basis of regulation reformation in the future. The findings of the study also contribute to the management of companies in developing comprehensive internal audit strategic plan and deploying resources to minimise ARL. 2019 Thesis https://etd.uum.edu.my/9645/ https://etd.uum.edu.my/9645/1/s819664-01.pdf text eng public https://etd.uum.edu.my/9645/2/s819664-02.pdf text eng public https://etd.uum.edu.my/9645/3/s819664-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	HF5667 Professional Ethics Auditors.
spellingShingle	HF5667 Professional Ethics Auditors. Khoo, Vivian Key audit matters, audit partner tenure and audit reporting lag: Evidence from Malaysia
description	Audit timeliness is one of the most important factors that determine timeliness of financial reporting. Undue delay in audit report would cause delay in financial reporting and consequently affect decision making of the users of financial statement. This study investigates the relationship between Key Audit Matters (KAM) category, which has longer audit reporting lag (ARL) and ARL. This study also examines the moderating effect of audit partner tenure on the relationship between KAM category, which has longer ARL and ARL. The data was collected from 395 companies with financial year end of 31 December 2016 listed on Bursa Malaysia Main Board. The sample was approximately 50 percent from the population of total 795 companies. Descriptive statistics showed that on average, the companies took approximately 92 days to complete their audit report. From mean t-test analysis and univariate analysis, KAM category-receivables was found to be positive and statistically significant in predicting ARL. Using ordinary least squares regression analysis, it was found that KAM category-receivables has a positive and significant relationship with ARL. However, audit partner tenure did not moderate the KAM category-receivables-ARL relationship. Further analysis suggested the potentiality of long-tenured audit partners from Big 4 to reduce ARL. The study shall be interest of the auditors, regulators and management of companies. The findings of the study would help auditors in developing a more realistic audit strategy and alleviate Bursa Malaysia’s investigation and enforcement actions, other than serving as a justification basis of regulation reformation in the future. The findings of the study also contribute to the management of companies in developing comprehensive internal audit strategic plan and deploying resources to minimise ARL.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Khoo, Vivian
author_facet	Khoo, Vivian
author_sort	Khoo, Vivian
title	Key audit matters, audit partner tenure and audit reporting lag: Evidence from Malaysia
title_short	Key audit matters, audit partner tenure and audit reporting lag: Evidence from Malaysia
title_full	Key audit matters, audit partner tenure and audit reporting lag: Evidence from Malaysia
title_fullStr	Key audit matters, audit partner tenure and audit reporting lag: Evidence from Malaysia
title_full_unstemmed	Key audit matters, audit partner tenure and audit reporting lag: Evidence from Malaysia
title_sort	key audit matters, audit partner tenure and audit reporting lag: evidence from malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2019
url	https://etd.uum.edu.my/9645/1/s819664-01.pdf https://etd.uum.edu.my/9645/2/s819664-02.pdf https://etd.uum.edu.my/9645/3/s819664-references.docx
_version_	1747828640983285760

Key audit matters, audit partner tenure and audit reporting lag: Evidence from Malaysia

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