Moderating Effect of Audit Quality on the Relationship Between Board Characteristics and Audit Report Lag of Listed Non-Financial Companies in Nigeria

Abstract

This study examined the moderating effect of audit quality on the relationship between board characteristics and audit report lag of listed non-financial companies in Nigeria. The ex-post facto research design was adopted, secondary data was extracted from annual reports and accounts of thirty-one listed non-financial companies for six years (2013-2018). Data were analyzed using system dynamic panel-data estimation technique; the findings revealed a negative and significant effect of board size on audit report lag, board independence has a positive but non-significant effect on audit report lag, however, board meeting has a positive and significant effect on audit report lag. Besides, audit quality has a negative and significant moderating effect on the relationship between board characteristics and audit report lag of listed non-financial companies in Nigeria. The study concludes that audit quality moderates the relationship between board characteristics and audit report lag of listed non-financial companies in Nigeria and recommended strict adherence to regulatory guidelines to avoid regulatory fines.

Keywords: Audit Quality, Board Characteristics and Audit Report Lag

DOI: 10.7176/RJFA/12-8-06

Publication date: April 30^th 2021