Title
Determinants and implications of long audit reporting lags : evidence from China
Document Type
Journal article
Source Publication
Accounting and Business Research
Publication Date
1-1-2016
Volume
46
Issue
2
First Page
145
Last Page
166
Keywords
audit reporting lag, non-standard audit opinions, restatements, auditor-client negotiation
Abstract
Audit reporting lag is the single most important determinant influencing the timeliness of the release of financial statements. In this study, we first explore the determinants of audit reporting lags in China where the audit market for listed firms is dominated by non-Big 4 auditors. We then examine the implications of long audit reporting lags in subsequent years. We find that selected measures of audit risk and complexity, and auditor expertise are all associated with the length of audit reporting lags in China. Firms with long audit reporting lags are more likely to have the receipt of non-standard opinions in subsequent periods. There is also evidence that firms with extremely long audit reporting lags tend to have more restatements in the subsequent year. As prior research has not specifically investigated the consequences of long audit reporting lags in subsequent years, this study makes an important contribution to the literature in this area.
DOI
10.1080/00014788.2015.1039475
Print ISSN
00014788
E-ISSN
21594260
Publisher Statement
Copyright © 2015 Taylor & Francis
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Chan, K. H., Luo, V. W., & Mo, P. L. L. (2016). Determinants and implications of long audit reporting lags: Evidence from China. Accounting and Business Research, 46(2), 145-166. doi: 10.1080/00014788.2015.1039475
