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

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