THE EFFECT OF AUDIT QUALITY ON AUDIT REPORT LAG OF INDUSTRIAL GOODS COMPANIES IN NIGERIA

Abstract

This study examined the effect of audit quality on audit report lag of industrial goods companies in Nigeria. The study specifically examined the effect of Audit quality on audit report lag of manufacturing companies in Nigeria and the effect of Auditor’s independence on audit report lag of manufacturing companies in Nigeria. The study is anchored on agency theory. The ex-post facto was adopted as the research design. The sample comprised of fourteen (14) consumer goods firms quoted on the Nigerian Stock Exchange (NSE) as at 31st December 2018. The study used secondary data obtained from annual reports and accounts. The data were analysed using multiple regression technique. The results showed that Audit quality has a positive and significant effect on audit report lag while Auditor’s independence does not significantly affect audit report lag of industrial goods companies in Nigeria. It was recommended that firms should engage the quality audit firms with requisite experience in their sector and have the required resources- human and material to avoid delays in meeting the regulatory guideline for audit report timeliness and that audit firm are given all they require to carry out their audit without undue interference and limitations.