Determinants of Audit Report Lag of Commercial Banks in Nepal

Bishnu Prasad Bhattarai

doi:10.5539/ijbm.v15n10p108

Abstract

The purpose of the study to analyzed the determinants of audit report lag of commercial banks in Nepal. The secondary balance panel data of seven commercial banks for the period of 2013/2014 to 2017/ 2018, latest five years fresh data for the analysis. The sample have been choice from the convenience sampling technique. The descriptive statistics, correlational and casual comparative research design has been employed. The study has been selected audit report lag as dependent variable and return of total assets (ROA), leverage, size of bank, size of board, and bank age as independent variables. The result has been analysis by three different models like Pooled OLS, Fixed Effects and Random Effects Model with the help of Gretl Statistical Software version 1.9.4. The result of Poled OLS and Random Effects Model has appropriate of this cases. In the Fixed Effects Model has not prediction of statically because there is not any variable significant. The study found that leverage and board size are the determinants of audit report lag in the Nepalese commercial banks perspectives. The study also found that the minimum 18 days to maximum 242 days lag of audit report of sample banks. The study concluded that leverage and board size have major determinants of audit report lag in Nepalese samples banks perspectives.

Highlights

The time difference between financial year end and audit report date is known as audit report lag or delay
The study found that leverage and board size are the determinants of audit report lag in the Nepalese commercial banks perspectives
The study concluded that leverage and board size have major determinants of audit report lag in Nepalese samples banks perspectives

Summary

Introduction

The time difference between financial year end and audit report date is known as audit report lag or delay. The information which were disclosure in the company annual report basically useful for the user as well as investors to take investment decisions. The information has got timely better to the users for analysis in different angle. The audit report lag directly and indirectly gap of companies' information to the regulated bodies and investors for relevant decision making ((Dibia & Onwuchekwa, 2013). The timely presentation of audit report produce without delay is better for the company itself, user and decision maker (Ustman, 2020). The accurate accounting information timely disclose is better for the company's investor, users as well as decision makers (Mazkiyani & Handoyo, 2017)

Methods

Results

Conclusion