Full Article - PDF

Published: 2022-06-23

Page: 888-899


Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State, Nigeria.


Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State, Nigeria.


Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Anambra State, Nigeria.

*Author to whom correspondence should be addressed.


This study investigated the effect of auditors’ independence on reporting lag of financial firms in Nigeria from (2011-to 2020). Five research questions and five hypotheses were formulated for the study. The ex-post facto research design was employed in the study. Used for the study is the population of all financial firms quoted and trading on the Nigerian Exchange Group (NXG) (NSE) as of 31st December 2021 with a sample size of Thirty-five (35) financial firms selected from the financial sector. Reliance was placed on secondary sources of data which were obtained from Annual reports of sampled firms as provided by individual firms and the Nigerian Exchange Group (NXG) website. Panel Estimated Generalized Least Square (EGLS) regression analysis was employed for validating the hypotheses. The study revealed a significant negative effect of audit fees on audit reporting lag. Audit switching, audit tenure, joint auditors and Big-4 auditors were not significant. The study suggests, among other things, that firms budget an appropriate amount for audit fees to guarantee that they do not spend more than is necessary while still improving audit quality and reporting timeliness. Other specific issues that affect audit report lag in industrial organisations and the oil and gas sector might be researched further.

Keywords: Audit independence, auditor tenure, audit fee, auditor quality, audit report lag

How to Cite

JANE-FRANCES, I. N., IFEOMA, O. H., & T. N., O. (2022). EFFECT OF AUDITORS’ INDEPENDENCE ON REPORTING LAG: EVIDENCE FROM SELECTED FIRMS IN NIGERIA. Asian Journal of Advances in Research, 5(1), 888–899. Retrieved from https://mbimph.com/index.php/AJOAIR/article/view/3063


Download data is not yet available.


Onyeaghala OH, Unung PU, Iorngee HM. Effects of mergers and acquisitions on employee’s morale in the Nigerian banking industry: A study on access and diamond bank plc. Journal of Research in Science and Technology. 2021;2(1):1-10.

Adeyemi SB, Fagbemi TO. Audit quality, corporate governance, and firm characteristics in Nigeria. International Journal of Business and Management. 2010;5(5):P169-179.

Farouk MA, Hassan SU. Impact of audit quality and financial performance of quoted cement firms in Nigeria. International Journal of Accounting and Taxation. 2014;2(2): 1-22.

Ojo M. The role of external auditors in corporate governance: Agency problems and the management of risk. (Oxford Brookes University). Online at https://mpra.ub.uni-muenchen.de/28149/ MPRA Paper No. 28149; 2009.

Porter B, Simon J, Hatherly D. Principles of External Auditing (3rd Ed.). West Sussex: John Wiley & Sons Ltd; 2008.

Arens AA, Elder RJ, Beasley Mark S. Auditing and assurance services: An integrated approach, (14th edition). New Jersey: Pearson Education, Inc; 2014.

Cullinan L. Enron as a symptom of audit process breakdown: can the sarbanes – oxley act cure the disease. Critical Perspectives on Accounting. 2004;15(617):853-864.

Al-Sehali M, Spear N. The decision relevance and timeliness of accounting earnings in Saudi Arabia. The International Journal of Accounting. 2004;39(2):197-217.

Ovbiebo EO. Audit committee characteristics and audit report lag in Nigeria Insurance companies. EPRA International Journal of Multidisciplinary Research (IJMR). 2021;7(6). Journal

DOI: 10.36713/epra2013 || SJIF Impact Factor 2021: 8.047 || ISI Value: 1.188. ISSN (Online): 2455-3662

Ogun S, Edoumiekumo A, Nkak P. Audit committee attributes and audit report lag of quoted industrial companies in Nigeria. Journal of Business and Management. 2020;22(5):01-09.

ISSN: 2278-487X, p-ISSN: 2319-7668. 01-09


DOI: 10.9790/487X-2205050109 www.iosrjournals.org

Freeman RE, Wicks AC, Parmar B. Stakeholder theory and the corporate objective revisited. Organization Science. 2004;15(3):364–369.

Ghosh A, Lustgarten S. Pricing of initial audit engagements by large and small audit firms. Contemporary Accounting Research. 2006; 23(2):333-368.

Abdollahiebli F. Joint audit and the implications of its use. Proceedings of Academics era 20th International Conference, Montreal, Canada, 29th-30th May 2018. Retrieved 1st February quality? Journal of Accounting Research. 2018;52(5):1029–1060.

Appah E, Tebepah SF. Audit committee attributes and reporting lag of listed consumer goods firms in Nigeria. International Journal of Economics and Financial Management. ISSN 2545-5966 P-ISSN 2695-1932. 2020;5(2).


Clarke T. Theories of corporate governance. The philosophical foundations of corporate governance. London, England: Routledge Taylor & Francis Group; 2004.

Khasharmeh HA. Determinants of auditor switching in bahraini’s listed companies - An empirical study. European Journal of Accounting, Auditing and Finance Research. 2015;73-99.

Nehme R, Assaker G, Khalife R. Dynamics of audit lag - Board of directors and audit committees' Effect. Corporate Ownership & Control. 2015;281-294.

Pawitri NM, Yadnyana K. Pengaruh audit delay, opini audit, reputasi auditor dan pergantian manajemen pada voluntary auditor switching. E-jurnal Akuntansi Universitas Udayana. 2015;214-228.

Azubike J, Aggreh M. Corporate governance and audit delay in Nigerian quoted companies. European Journal of Accounting Auditing and Finance Research. 2014;22-33.

Pw C. The emergence of a new examination approach – Joint Audits; 2011.

Available:http://www.pwc.com/gx/en/services/tax/newsletters/tax-controversy-dispute resolution/joint-audits.html.

Ajaegbu CO. Case for joint audit: Preamble. Institute of Chartered Accountants of Nigeria; 2014.


EC. [European Commission]. Regulation (EU) No. 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EC. Official Journal of the European Union L158/77; 2014.

Lobo GJ, Paugam L, Zhang D, Casta JF. The effect of joint auditor pair composition on audit quality: evidence from impairment tests. Contemporary Accounting Research. 2017;34(1):118–153.

DOI: 10.1111/1911-3846.12244

Okaro SC, Okafor GO, Ofoegbu GN. Mandating joint audits in Nigeria: Perspectives and issues. International Journal of Academic Research in Business and Social Sciences. 2018;8(3):316–338.

DeAngelo LE. Auditor independence, ‘low balling’, and disclosure regulation. Journal of Accounting and Economics. 2001;3:113-127.

Zayol PI, Kukeng V, Iortule M. Effect of auditor independence on audit quality: A review of the literature. International Journal of Business and Management Invention. 2017;6(3):51-59.

Palmrose ZV, Saul RS. Push for auditor independence regulation. 2001;24:18-23.

Aktaş Rabia, Kargin, Mahmut. Timeliness of reporting and the quality of financial information. International Research Journal of Finance and Economics. 2011;63:71-77.

Habib A, Bhuiyan MBU, Huang HJ, Miah MS. Determinants of audit report lag: A meta‐analysis. International Journal of Audit. 2019;23:20–44.


Rubin MA. Municipal selection of a state or external auditor for financial statement audits. Journal of Accounting and Public Policy. 1992;11(2):155–178.

Leventis S, Weetman P, Caramanis C. Determinants of audit report lag: Some evidence from the Athens stock exchange. International Journal of Auditing. 2005;9(1):45-48.

Lobo GJ, Zhao Y. Relation between audit effort and financial report misstatements: Evidence from quarterly and annual restatements. The Accounting Review. 2013; 88(4):1385–1412.

DeFond M, Zhang J. A review of archival auditing research. Journal of Accounting and Economics. 2014;58(2-3):275–326.

Johnson VE, Khurana IK, Reynold JK. Audit-firm tenure and the quality of financial reports. Contemporary Accounting Research. 2002;19(4):637-660.

Chi W, Huang H, Liao Y, Xie H. Mandatory audit partner rotation, audit quality, and market perception: Evidence from Taiwan. Contemporary Accounting Research. 2009;26(2):359–391.

Babatolu AT, Aigienohuwa OO, Uniamikogbo E. Auditor’s independence and audit quality: A study of selected deposit money banks in Nigeria. International Journal of Finance and Accounting. 2016;5(1):13-21.

Jensen Michael C, William H Meckling. “Can the Corporation Survive?” Financial Analysts Journal (January-February); 1976.

Ibrahim G, Mansor N, Nasidi M. Mediating effect of audit committee independence on the link between firms’ internal governance tunnelling from real earnings management. International Journal of Academic Research in Business and Social Sciences. 2020;10(2):195–211.

Ratna JST, Bambang H. Influence of audit committee and internal audit on audit report lag: Size of a public accounting firm as a moderating variable. International Journal of Research in Business and Social Science. 2020;9(1):137-142.

Agyemang-Mintah P, Schadewitz H. Audit committee adoption and firm value: Evidence from UK financial institutions. International Journal of Accounting &Information Management. 2017;26(3).

Hoai Nam Le. Audit fees, auditor independence and audit quality: New Zealand evidence. (A PhD Research Proposal, School of Accounting and Commercial Law, Victoria University of Wellington); 2011.


Coulton J, Livne G, Pettinicchio A, Taylor S. Audit fees and accounting quality: Inferences from single-period versus multi-period perspectives; 2012.


Klein A. Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics. 2002;33:375-400.

Schilling MA. Decades ahead of her time; Advancing stakeholder theory Through the Ideas of Mary Parker Follett. Journal of Management History. 2000;6(5):224-242.

Stocken ME. Auditor conservatism and opinion shopping: Influence of client switching expectations on audit opinion decision. (The Pennsylvania State University); 2000.

Sundaram AK, Inkpen AC. Stakeholder theory and the corporate objective revisited: A Reply. Organization Science. 2004;15(3):370–371.