All My Rowdy Friends: The Effect of Super Bowl Hosting on Audit Timing

43 Pages Posted: 24 Apr 2020

See all articles by Matthew Crook

Matthew Crook

University of Mississippi - Department of Finance

Tamara A. Lambert

Lehigh University

Brian Walkup

Rollins College - Crummer Graduate School of Business

James Whitworth

University of South Florida

Date Written: April 17, 2020

Abstract

We use the Super Bowl as a setting to explore the impact of a non-financial, exogenous source of distraction on audit efficiency/timeliness. The magnitude of festivities related to hosting the Super Bowl, combined with the game falling during the audit “busy season,” results in an ideal setting to examine how audit firms navigate short-term, anticipated audit team capacity constraints. Using 16 years of financial reporting data, we test the impact of Super Bowl hosting and find it results in less efficient audits (approximately 2 days, in terms of audit report lag) and less timely SEC (10-K) filings. However, we find no impact of Super Bowl hosting on audit fees, earnings announcement timeliness, or audit quality (using four different proxies). Our study contributes to our understanding of the costs of Super Bowl hosting, provides empirical evidence that exogenous distraction reduces efficiency in a large organizational setting, underscores the importance of high quality human resource inputs to positive audit outcomes, and provides evidence that audit firms accept lower audit efficiency in response to short-term, anticipated capacity constraints

Keywords: Audit Report Lag, Audit Delay, Audit Fees, Time Pressure

JEL Classification: M42, M40, M41

Suggested Citation

Crook, Matthew and Lambert, Tamara A. and Walkup, Brian and Whitworth, James, All My Rowdy Friends: The Effect of Super Bowl Hosting on Audit Timing (April 17, 2020). Available at SSRN: https://ssrn.com/abstract=3579003 or http://dx.doi.org/10.2139/ssrn.3579003

Matthew Crook

University of Mississippi - Department of Finance ( email )

Oxford, MS 38677
United States

Tamara A. Lambert

Lehigh University ( email )

621 Taylor Street
Bethlehem, PA 18015
United States

Brian Walkup

Rollins College - Crummer Graduate School of Business ( email )

Winter Park, FL 32789
United States

James Whitworth (Contact Author)

University of South Florida ( email )

Tampa, FL 33620
United States

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