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Title: An analysis of audit report lags in Maltese companies
Authors: Grech, Loraine
Keywords: Financial statements
Auditing -- Malta
Accounting firms -- Malta
Issue Date: 2013
Abstract: Purpose - This study investigates the Audit Report Lag in Maltese audit reports, considering factors that may influence the duration of the audit of a sample of 375 companies for the years 2006-2010. Design - A mixed-research approach was adopted, incorporating both quantitative and qualitative methods in order to attain the determined purpose. Through a series of statistical tests and a linear regression model, the researcher examined the relationship between the Audit Report Lag and six variables. Furthermore, a sample of 12 qualified auditors was selected for an interview in order to discuss their point of view on the subject. Findings - The findings reveal that the timing factor of financial reporting is important, depending on how useful the financial statements are perceived by the users. The regression analysis suggests that large companies, positive earnings' figure, financial services companies and entities audited by large-scale audit firms, experience a shorter Audit Report Lag. However, results indicate that the higher the possibility of a qualified audit opinion and in the absence of an extraordinary item, the Audit Report Lag is expected to be longer. Most of the interviewees' responses are consistent with the statistical results, except in the case of extraordinary item. Conclusions - Based on the findings, stringent regulations and areas that incorporate high element of subjectivity and risk, are the most likely to influence the duration of the audit which in turn, may have an impact on the timeliness of financial reporting. Value - The findings of this research are significant both to the Audit firms and the client companies as they present how a number of factors may influence the duration of the audit which in turn allows both parties to cooperate more together in reducing the Audit Report Lag.
Description: B.ACCTY.(HONS)
Appears in Collections:Dissertations - FacEma - 2013
Dissertations - FacEMAAcc - 2013

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