DETERMINANTS OF AUDIT REPORT LAG OF LISTED NON-FINANCIAL COMPANIES IN NIGERIA

Abstract

This study investigated the determinants of audit report lag among listed non-financial companies in Nigeria, employing a longitudinal research design and secondary data from 46 selected companies listed on the Nigerian Exchange Group with financial year-end dates of December 31. The study spanned nine years, from 2014 to 2022, using descriptive statistics and inferential analysis, specifically the random effects panel least squares regression model. Key findings of the study revealed that firm size had a negative but statistically non-significant effect on audit report lag. Board size showed a positive and statistically significant effect on audit report lag. Audit committee expertise had a positive and statistically significant effect on audit report lag. Profitability exhibited a negative but statistically non-significant effect on audit report lag. Solvency was negatively associated with audit report lag, but the effect was statistically non-significant. Audit firm type demonstrated a negative and statistically significant effect on audit report lag. The study recommends that corporate entities ensure their boards are appropriately sized to include skilled and qualitative members who can effectively oversee the organization’s activities, thereby prioritizing stakeholder interests. Timely submission of audited annual reports can be achieved by introducing clear timelines and accountability frameworks for audit processes. Additionally, leveraging the services of Big-4 audit firms is encouraged to enhance audit quality and reduce reporting delays.