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IFRS Adoption, Firm Traits and Audit Timeliness: Evidence from Nigeria

Author

Listed:
  • Musa Inuwa Fodio

    (Nasarawa State University)

  • Victor Chiedu Oba

    (Nasarawa State University)

  • Abiodun Bamidele Olukoju

    (Bursary Federal University Oye-Ekiti)

  • Ahmed Abubakar Zik-rullahi

    (University of Abuja)

Abstract

Audit timeliness is an important ingredient of quality financial reporting. Stale information might only benefit little to stakeholders in their decision making process. With the recent adoption of the International Financial Reporting Standards in Nigeria, the work of the auditor has seemingly become complicated. The question then emerges, if such adoption affects the timeliness of audit reports. This study empirically investigates the impact of IFRS adoption and other associated explanatory variables on audit timeliness in Nigerian deposit money banks for the period 2010 to 2013. Panel regression analysis reveals a positive significant impact of IFRS adoption on audit timeliness. Results also indicate that firm age, firm size and auditor firm type are significant predictors of audit timeliness in Nigeria deposit money banks. The study recommends that auditor firms should make stringent efforts to acclimatize with the complexities of the IFRS transition process so as to reduce audit report delays. Also reporting agencies should come up with regulations, deadlines and benchmarks for issuance of independent audit reports.

Suggested Citation

  • Musa Inuwa Fodio & Victor Chiedu Oba & Abiodun Bamidele Olukoju & Ahmed Abubakar Zik-rullahi, 2015. "IFRS Adoption, Firm Traits and Audit Timeliness: Evidence from Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(3), pages 106-119, June.
    • Handle: RePEc:dug:actaec:y:2015:i:3:p:106-119
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    References listed on IDEAS

    as
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    3. Bikki Jaggi & Judy Tsui, 1999. "Determinants of audit report lag: further evidence from Hong Kong," Accounting and Business Research, Taylor & Francis Journals, vol. 30(1), pages 17-28.
    4. Martin Hoogendoorn, 2006. "International Accounting Regulation and IFRS Implementation in Europe and Beyond -- Experiences with First-time Adoption in Europe," Accounting in Europe, Taylor & Francis Journals, vol. 3(1), pages 23-26, October.
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