Does Audit Delay Enhance Financial Report Quality: Evidence from Nigerian Listed Non-Financial Institution?

Abstract

The study examines the effect of audit delay on the financial reporting quality of listed non-financial firms in Nigeria. A sample size of 45 listed firms is selected using a purposive sampling technique. The study covers a period from 2011 to 2020, resulting in 450 firm-year observations. The data obtained is analysed using the Ordinary Least Square Method (OLS). The result shows that audit delay has a significant positive association with financial reporting quality. The result indicates that delay in giving an audit report enhances the financial reporting quality, thus allowing the auditor to detect and report on material misstatements and financial irregularities. This is consistent with the agency theory. Keywords: Audit delay, Financial reporting quality, Longitudinal research design, Financial irregularities, Agency theory. DOI: 10.7176/RJFA/13-14-03 Publication date: August 31 st 2022