Auditor-Client Geographic Proximity and Audit Report Timeliness

Forthcoming at Advances in Accounting

Posted: 18 Dec 2017

See all articles by Bei Dong

Bei Dong

University of South Florida - School of Accountancy

Dahlia Robinson

University of South Florida

Le Emily Xu

University of New Hampshire - Department of Accounting & Finance

Date Written: December 2017

Abstract

While investors and regulators value the timely release of audited financial information, recent changes in the regulatory environment have increased the difficulty of providing timely audited financial information. In this paper we examine the association between auditor-client geographic proximity and external audit report delay, since identifying the factors that influence audit delay remains an important issue. We find strong evidence that audit reports are more timely for geographically proximate auditors and clients. Further, we show that the improvement in audit report timeliness is more pronounced for non-accelerated filers relative to accelerated filers. These results are robust to controls for potential self-selection bias.

Keywords: auditor-client geographic proximity, audit report timeliness, non-accelerated filers

Suggested Citation

Dong, Bei and Robinson, Dahlia and Xu, Le Emily, Auditor-Client Geographic Proximity and Audit Report Timeliness (December 2017). Forthcoming at Advances in Accounting, Available at SSRN: https://ssrn.com/abstract=3089835

Bei Dong

University of South Florida - School of Accountancy ( email )

4202 E. Fowler Avenue, BSN 3403
Tampa, FL 33620-5500
United States
813-974-0154 (Phone)

Dahlia Robinson (Contact Author)

University of South Florida ( email )

4202 E. Fowler Avenue, BSN 3403
Tampa, FL 33620-5500
United States
8139746888 (Phone)

Le Emily Xu

University of New Hampshire - Department of Accounting & Finance ( email )

Durham, NH 03824
United States
603-862-3318 (Phone)
603-862-3383 (Fax)

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