Date of Award
5-3-2012
Degree Type
Thesis
Degree Name
Master of Philosophy (MPHIL)
Department
Accountancy
First Advisor
Pro. K. H. Chan
Abstract
Timeliness is an essential attribute of corporate financial reporting as it affects the usefulness of information made available to external investors. The recognition that the length of audit is the single most important determinant influencing the timeliness of earnings announcements has motivated investigations on audit reporting lags in different countries. Nevertheless, there is a lack of research on this issue in China where the institutional environment for accounting and auditing practices is different from that of other countries. The growing interest in the Chinese stock market from domestic and international investors further increases the importance of this research. In this study, I first explore the determinants of audit reporting lags in China based on the characteristics of the Chinese audit market and business environment. I then examine the implications of long audit reporting lags. The findings of this paper indicate that audit risk, audit 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 adverse consequences such as non-standard opinions and financial statement restatements in subsequent periods.
Copyright
The copyright of this thesis is owned by its author. Any reproduction, adaptation, distribution or dissemination of this thesis without express authorization is strictly prohibited.
Recommended Citation
Luo, W. (2012). Determinants and implications of audit reporting lags in China (Master's thesis, Lingnan University, Hong Kong). Retrieved from http://dx.doi.org/10.14793/acct_etd.15