Timeliness (Audit Delay)
Proxy: Audit Delay (Days)
Definition & Description
Audit Delay refers to the time taken to complete the audit process, calculated from the fiscal year-end (usually Dec 31) to the date on the Independent Auditor's Report.
How to Use (Panel Data)
A favorite dependent variable in auditing research. It measures auditor efficiency and the smoothness of the client's financial reporting process.
Full Explanation Article
Regulators typically mandate that audited annual reports be published by the end of March.
Longer audit delays can be triggered by large firm size, complex financial instruments, auditor switching, or internal fraud indications (bad news).
Related Reference Journals
- [1]Ashton, R. H., Willingham, J. J., & Elliott, R. K. (1987). An Empirical Analysis of Audit Delay.
- [2]Bamber, E. M., Bamber, L. S., & Schoderbek, M. P. (1993). Audit Structure and Other Determinants of Audit Report Lag.
Research Ideas
The Effect of Firm Size, Audit Opinion, and Profitability on Audit Delay.
Impact of Operating Complexity and Auditor Industry Specialization on Audit Lag.
Frequently Asked Questions (FAQ)
What is the difference between this proxy and regular accounting variables?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Where does the data come from to calculate this proxy?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Can this proxy be used for all industry sectors?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.