AUDIT FIRM ATTRIBUTES ON FINANCIAL REPORTING-LAG OF LISTED CONSUMER GOODS FIRMS IN NIGERIA: MODERATING EFFECT OF AUDIT COMMITTEE INDEPENDENCE
DOI:
https://doi.org/10.67199/tjmbkb87Keywords:
Audit Firm, Financial Reporting-Lag, Audit Committee IndependenceAbstract
This study examined the impact of audit firm attributes on financial reporting-lag of listed consumer goods firms in Nigeria: moderating effect of audit committee independence between 2012-2024. Research design was ex-post factor. Data for the study was secondary. The data was analyzed via Multiple Regression and test of independence. The analysis revealed audit firm size has a significant negative effect on financial reporting lag, audit fee has a significant positive effect on financial reporting lag, and Audit tenure was insignificant. Audit committee independence significantly moderates the relationship between audit firm size and financial reporting lag. However, audit fee and audit committee independence was also positive. Furthermore, negative significant moderating effect was observed between audit tenure and audit committee independence. The study recommends Financial Reporting Council of Nigeria (FRCN) and Securities and Exchange Commission (SEC) should encourage listed firms to engage auditors from reputable audit firms preferably Big 4. Regulatory bodies should implement mechanisms to monitor and evaluate audit fees against audit outcomes. The Nigerian Code of Corporate Governance should support independent audit committees and provide guidelines for balancing rigorous oversight with timeliness. Firms should improve internal audit readiness and engage auditors early in the financial year to reduce the turnaround time for reporting. Clear timelines and project management tools should be used to monitor audit progress.
Keywords: Audit Firm, Financial Reporting-Lag, Audit Committee Independence.
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