Audit Report Lag, Audit Tenure and Auditor Industry Specialization; Empirical Evidence from Jordan

Abdelrahman Yousef Bhoor, Basheer Ahmad Khamees

Abstract


This study examined the association between audit-firm tenure and audit report lag (ARL) and how this association is affected by auditor industry specialization. Using two methods for measuring auditor industry-specialization, the study sample included 691 Jordanian firm year observations listed in Amman Stock Exchange during the period (2009-2013). The data collected was analyzed by using a number of basic statistical techniques such as descriptive statics, correlation and multiple-regression. This study revealed thatthere is no significant relationship between audit report lag and audit tenure. Additionally, industry specializations auditors will not influence on the relation between audit report lag and audit tenure in Jordan. Policy makers and regulators are encouraged to take into consideration that mandatory auditor rotation in Jordan will not result in longer audit report lag. Although audit industry specialization didn’t influence on the relation between audit report lag and audit tenure, auditor industry specialization has a significant effect on audit report lag, therefore, the Jordanian companies are recommended to hire industry-specialized auditors to reduce audit report lag. The researchers also recommend farther researches with different measurements of auditor industry specialization

Keywords


Jordan, Audit report lag, Audit firm tenure, Auditor industry specialization

Full Text:

PDF

Refbacks

  • There are currently no refbacks.