Audit Committee Characteristics and Audit Report Lag

16 Pages Posted: 5 Jun 2015

See all articles by Nigar Sultana

Nigar Sultana

Curtin University of Technology - Curtin Business School - Bentley Campus; Curtin University - School of Accounting

Harjinder Singh

Curtin University - School of Accounting

J‐L. W. Mitchell Van der Zahn

Curtin University - School of Accounting

Date Written: July 2015

Abstract

This study seeks to determine whether audit committee compositional features are associated with the timeliness of financial reporting by Australian firms. Timeliness of financial reporting by firms, of which the length of an audit is a fundamental component, adds information content and impacts firm value, making an examination of audit report lag determinants important. Results indicate that audit committee members with financial expertise, prior audit committee experience and those who are independent are associated with shorter audit report lag. Results suggest that legislation mandating audit committee financial expertise and independence are effective also in improving the timeliness of financial reporting. More importantly, our results suggest that there may be benefits in constituting audit committees with other compositional features such as prior committee experience in overall efforts to improve the timeliness, and therefore quality, of financial reporting by firms.

Keywords: Audit report lag, audit committee, financial reporting quality

Suggested Citation

Sultana, Nigar and Sultana, Nigar and Singh, Harjinder and Mitchell Van der Zahn, J‐L. W., Audit Committee Characteristics and Audit Report Lag (July 2015). International Journal of Auditing, Vol. 19, Issue 2, pp. 72-87, 2015, Available at SSRN: https://ssrn.com/abstract=2614731 or http://dx.doi.org/10.1111/ijau.12033

Nigar Sultana (Contact Author)

Curtin University of Technology - Curtin Business School - Bentley Campus ( email )

GPO Box U1987
Perth WA 6845
Australia

Curtin University - School of Accounting ( email )

Australia

Harjinder Singh

Curtin University - School of Accounting ( email )

Australia

J‐L. W. Mitchell Van der Zahn

Curtin University - School of Accounting ( email )

Australia

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