Chief Accounting Officers and Audit Efficiency

Abstract

This study is to investigate the roles of chief accounting officer (CAO) on the efficiency of auditing process and to empirically examine the association between separate CAO appointment and audit report lag. Based on the firms listed in the U.S. market from 2004 to 2012, we examine and find that the presence of a separate CAO significantly reduces audit report lag. With the appointment of a new auditor, the presence of a separate CAO is associated with lower audit report lag, suggesting the moderating effect of separate CAOs on the relationship between auditor change and audit delay.

Keywords: Chief accounting officer, Audit effort, Audit efficiency, Audit report lag

JEL Classification: M41, M42