The Impact of Earnings Volatility on Audit Report Lag in Listed Nigerian Firms
- Post by: airjournals
- October 6, 2023
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Prof. Egiyi, Modesta Amaka1 & Okafor, Victor Ikechukwu PhD2
1Department of Accounting, Godfrey Okoye University, Enugu
2Department of Accounting Michael Okpara University of Agriculture, Umudike
| AbstractThe purpose of this study is to investigate whether earnings volatility influences audit report lag in listed firms in Nigeria. For the period 2012-2021, a sample of ten Nigerian firms listed on the Nigerian Exchange Group Plc was analyzed. The annual panel data on publicly traded companies was obtained from the annual report release and analyzed using the pooled mean group estimate approach. The findings show a positive relationship between earnings volatility and audit report lag, which is consistent with auditors exerting greater effort in response to more volatile earnings. Increased leverage and larger firm size are also linked to fewer audit efforts, according to the findings. Given the positive and significant influence of earnings volatility on audit report lag, the study suggests that management organizations in Nigeria provide an enabling atmosphere for audits. It is vital to have adequate financial resources available for auditing to enable the proper conduct of audits, which would eventually expose misstatements in reports, hence improving the quality of financial reporting in Nigerian firms. Keywords Earnings Volatility; Audit Report Lags; Listed Nigerian Firms Citation Egiyi, M. A. & Okafor, V. I. (2023). The Impact of Earnings Volatility on Audit Report Lag in Listed Nigerian Firms. International Journal of Advanced Finance and Accounting, 4(4), 16-24, https://doi.org/10.5281/zenodo.10028036 |
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