Audit Qualification Paragraphs and Audit Report Lag: Evidence from Iran

Authors: Faraji, O., MohammadRezaei, F., Yazdifar, H., Ahmed, K. and Najafi Gadikelaei, Y.

Journal: Revista Espanola de Financiacion y Contabilidad

Volume: 52

Issue: 3

Pages: 348-383

eISSN: 2332-0753

ISSN: 0210-2412

DOI: 10.1080/02102412.2022.2086731

Abstract:

We investigate whether the number and type (the nature and repetitiveness) of audit qualification paragraphs (AQPs) play a role in audit report lag (ARL). We use a unique dataset of listed firms in Iran where the multitude and diversity of AQPs are very high. The results show that ARL is longer for firms with a greater number of AQPs, that there is a significant positive relationship between all AQP types and ARL except for misclassification of accounting numbers in financial statements, and that ARL increases with the number of non-repetitive AQPs. We employed several sensitivity tests, and the results did not change materially. Drawing on prior studies, we have developed two arguments, ‘additional audit procedures’ and ‘auditor-client negotiations’, to explain the role of the number and type of AQPs on ARL. The findings of this study have significant implications for investors, auditors and authority bodies in terms of paying close attention to the number and type of AQPs in their decisions.

https://eprints.bournemouth.ac.uk/37014/

Source: Scopus

Audit Qualification Paragraphs and Audit Report Lag: Evidence from Iran

Authors: Faraji, O., MohammadRezaei, F., Yazdifar, H., Ahmed, K. and Gadikelaei, Y.N.

Journal: SPANISH JOURNAL OF FINANCE AND ACCOUNTING-REVISTA ESPANOLA DE FINANCIACION Y CONTABILIDAD

Volume: 52

Issue: 3

Pages: 348-383

eISSN: 2332-0753

ISSN: 0210-2412

DOI: 10.1080/02102412.2022.2086731

https://eprints.bournemouth.ac.uk/37014/

Source: Web of Science (Lite)

Audit Qualification Paragraphs and Audit Report Lag: Evidence from Iran

Authors: Faraji, O., MohammadRezaei, F., Yazdifar, H., Ahmed, K. and Najafi Gadikelaei, Y.

Journal: Spanish Journal of Finance and Accounting

Abstract:

We investigate whether the number and type (the nature and repetitiveness) of audit qualification paragraphs (AQPs) play a role in audit report lag (ARL). We use a unique dataset of listed firms in Iran where the multitude and diversity of AQPs are very high. The results show that ARL is longer for firms with a greater number of AQPs, that there is a significant positive relationship between all AQP types and ARL except for misclassification of accounting numbers in financial statements, and that ARL increases with the number of non-repetitive AQPs. We employed several sensitivity tests, and the results did not change materially. Drawing on prior studies, we have developed two arguments, “additional audit procedures” and “auditor-client negotiations”, to explain the role of the number and type of AQPs on ARL. The findings of this study have significant implications for investors, auditors and authority bodies in terms of paying close attention to the number and type of AQPs in their decisions.

https://eprints.bournemouth.ac.uk/37014/

Source: Manual

Audit Qualification Paragraphs and Audit Report Lag: Evidence from Iran

Authors: Faraji, O., MohammadRezaei, F., Yazdifar, H., Ahmed, K. and Najafi Gadikelaei, Y.

Journal: Spanish Journal of Finance and Accounting

ISSN: 0210-2412

Abstract:

We investigate whether the number and type (the nature and repetitiveness) of audit qualification paragraphs (AQPs) play a role in audit report lag (ARL). We use a unique dataset of listed firms in Iran where the multitude and diversity of AQPs are very high. The results show that ARL is longer for firms with a greater number of AQPs, that there is a significant positive relationship between all AQP types and ARL except for misclassification of accounting numbers in financial statements, and that ARL increases with the number of non-repetitive AQPs. We employed several sensitivity tests, and the results did not change materially. Drawing on prior studies, we have developed two arguments, “additional audit procedures” and “auditor-client negotiations”, to explain the role of the number and type of AQPs on ARL. The findings of this study have significant implications for investors, auditors and authority bodies in terms of paying close attention to the number and type of AQPs in their decisions.

https://eprints.bournemouth.ac.uk/37014/

https://www.tandfonline.com/toc/refc20/current

Source: BURO EPrints