EFFECT OF AUDITORS' INDEPENDENCE ON REPORTING LAG: EVIDENCE FROM SELECTED FIRMS IN NIGERIA
IBIDA NNEKA JANE-FRANCES *
Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State, Nigeria.
ORJINTA, HOPE IFEOMA
Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State, Nigeria.
OFOR, T. N.
Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study investigated the effect of auditors’ independence on reporting lag of financial firms in Nigeria from (2011-to 2020). Five research questions and five hypotheses were formulated for the study. The ex-post facto research design was employed in the study. Used for the study is the population of all financial firms quoted and trading on the Nigerian Exchange Group (NXG) (NSE) as of 31st December 2021 with a sample size of Thirty-five (35) financial firms selected from the financial sector. Reliance was placed on secondary sources of data which were obtained from Annual reports of sampled firms as provided by individual firms and the Nigerian Exchange Group (NXG) website. Panel Estimated Generalized Least Square (EGLS) regression analysis was employed for validating the hypotheses. The study revealed a significant negative effect of audit fees on audit reporting lag. Audit switching, audit tenure, joint auditors and Big-4 auditors were not significant. The study suggests, among other things, that firms budget an appropriate amount for audit fees to guarantee that they do not spend more than is necessary while still improving audit quality and reporting timeliness. Other specific issues that affect audit report lag in industrial organisations and the oil and gas sector might be researched further.
Keywords: Regression analysis, Audit independence, brain length-width, auditor tenure, teleosts, audit fee, auditor quality, audit report lag