Investigating the effect of audit opinion & quality in the relationship between financial reporting complexity and audit delay

Subject Areas :

Mohammad Ali Sari ¹ (Assistant Professor, Department of Accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran)

Received: 2024-03-25 Accepted : 2024-05-10 Published : 2024-07-16

Keywords: Audit characteristics, audit quality, audit report, financial reporting, financial statements,

Abstract :

Purpose: Since the audit report contains the opinion of the auditors about the credibility of the financial statements, investors usually prefer that the audit report be submitted with less delay. Based on this, it is important to research the variables that can affect the delay of the audit report. In this regard, the current research was trying to investigate the moderating effect of audit opinion and quality on the relationship between the complexity of financial reporting and the delay in the audit report. Methodology: For this research purpose, the data obtained from 140 companies admitted to the Tehran Stock Exchange during the years 2011 to 2021 were collected and analyzed in the form of four hypotheses using multivariate regression models. Findings: The research results show that audit firm's tenure, audit opinion, size of the audit institute, and audit fees moderate the relationship between the complexity of financial reporting and audit report delay. Originality: These findings generally indicate the effect of audit opinion and quality on the audit report delay in the presence of financial reporting complexity. This research helps to better understand the Iranian capital market regarding the factors affecting the delay of the audit report.

References:

اعتمادي، حسین، و يارمحمدي، اکرم. (1382). بررسي عوامل موثر بر گزارشگري میان دوره ای به موقع درشرکت‌هاي پذيرفته‌شده در بورس اوراق بهادارتهران. پیشرفت‌های حسابداری، 19(2)، 87- 99. https://jaa.shirazu.ac.ir
امان، پیمان، همتی، هدی، و کردلوئی، حمیدرضا. (1402). ویژگی های روانشناختی حسابرسان و تاخیر در گزارش حسابرسی. پژوهش‌های حسابرسی حرفه‌ای، 3(12)، 106-127. http://aapc.khu.ac.ir/article-1-1229-fa.html
اﻳﺰدي ﻧﻴﺎ، ﻧﺎﺻﺮ، ﻓﺪوي، ﻣﺤﻤﺪﺣﺴﻦ، و اﻣﻴﻨﻲ ﻧﻴﺎ، ﻣﻴﺜﻢ. (1393). ﺑﺮرﺳﻲ تاثیر ﺷﻔﺎﻓﻴﺖ ﭘﻴﭽﻴﺪﮔﻲ ﺣﺴﺎﺑﺪاري و ﮔﺰارﺷﮕﺮي ﻣﺎﻟﻲ ﺷﺮﻛﺖ ﺑﺮ ﺗﺄﺧﻴﺮ در اراﺋﻪ ﮔﺰارش ﺣﺴﺎﺑﺮس. داﻧﺶ ﺣﺴﺎﺑﺮﺳﻲ، 14(1)، 87-103.
برزگر عباسپور، کسری، اسلامی مفیدآبادی، حسین، و ابراهیمی شقاقی، مرضیه. (1402). تأثیر ویژگی‌های حسابرس و ساختار هیئت‌مدیره بر احتمال وقوع تقلب در صورت‌‌های مالی شرکت‌های تجاری. قضاوت و تصمیم گیری در حسابداری، 2(7)، 115-145. doi: 10.30495/jdaa.2023.705530
ﺑﺰرگ اﺻﻞ، ﻣﻮﺳﻲ، رﺟﺐ دري، ﺣﺴﻴﻦ، و ﺧﺮﻣﻴﻦ، ﻣﻨﻮﭼﻬﺮ. (1397). ﺑﺮرﺳﻲ ﻋﻮاﻣﻞ ﻣﺆﺛﺮ ﺑﺮ اﻧﺘﺸﺎر ﺑﻪ ﻫﻨﮕﺎم ﮔﺰارش ﺣﺴﺎﺑﺮسی. دانش ﺣﺴﺎﺑﺪاري، 9(1)، 115-146. doi: 10.22103/JAK.2018.10944.2503
ﭘﻮرﺣﻴﺪري، اﻣﻴﺪ، ﺑﺮﻫﺎﻧﻲ‌ﻧﮋاد، ﺳﻌﻴﺪه، و ﻣﺤﻤﺪرﺿﺎﺧﺎﻧﻲ، وﺣﻴﺪ. (1394). ﺑﺮرﺳـﻲ ﺗـﺎﺛﻴﺮ ﻛﻴﻔﻴـﺖ ﺣﺴﺎﺑﺮﺳـﻲ ﺑـﺮ ﺑـﻪ ‌ﻣﻮﻗـﻊ ﺑـﻮدن ﮔـﺰارش ﺣﺴﺎﺑﺮﺳﻲ در ﺷﺮﻛﺖ‌ﻫﺎي ﭘﺬﻳﺮﻓﺘﻪ ﺷﺪه در ﺑﻮرس اوراق ﺑﻬﺎدار ﺗﻬﺮان. داﻧﺶ ﺣﺴﺎﺑﺮﺳﻲ، 14(58)، 85- 104. https://www.sid.ir/fa/journal/ViewPaper.aspx?ID=252132
رضائی پیته نوئی، یاسر، و صفری گرایلی، مهدی. (1397). خوانایی گزارشگری مالی و احتمال گزارشگری مالی متقلبانه. پژوهش های حسابداری مالی، 10(4)، 43-58. doi: 10.22108/FAR.2019.113858.1337
زارع بهنمیری، محمدجواد، و حسنخانی، فاطمه. (1400). ویژگی‌های موسسه حسابرسی و تاخیر ارائه گزارش حسابرسی با رویکرد فراتحلیل. بررسی‌های حسابداری و حسابرسی، 28(4)، 664-690. doi: 10.22059/ACCTGREV.2021.317284.1008500
زارع بهنمیری، محمد جواد، و حسنخانی، فاطمه. (1401). بررسی معیارهای پیچیدگی شرکت و تأخیر در ارائه گزارش حسابرسی: با رویکرد فراتحلیل. دانش حسابداری، 13(4)، 161-177. doi: 10.22103/JAK.2021.18232.3575
زارع بهنمیری، محمد جواد، و حسنخانی، فاطمه. (1400). ویژگی‌های مؤسسه حسابرسی و تأخیر ارائه گزارش حسابرسی با رویکرد فراتحلیل. بررسی‏‌های حسابداری و حسابرسی, 28(4), 664-690. doi: 10.22059/acctgrev.2021.317284.1008500
سازمان بورس اوراق بهادار. (1386). دستورالعمل اجرایی افشای اطلاعات شرکت‌های ثبت شده نزد سازمان. تهران.
صالحی، مریم، و مومنی، علیرضا. (1399). بررسی تاثیر اندازه و پیچیدگی عملیات واحد تجاری بر تأخیر در ارائه گزارش حسابرسی. رویکردهای پژوهشی نوین مدیریت و حسابداری، 12(4)، 77-88. https://majournal.ir/index.php/ma/article/view/364
صفرزاده بندری، محمد حسین، باقری، مرتضی، و ابوحیدری، الهام. (1402). تاثیر ویژگی های حسابرس بر تاخیر در گزارشگری حسابرسی و پیچیدگی گزارش های مالی. اولین کنفرانس بین المللی مدیریت، بازرگانی، اقتصاد و حسابداری. https://civilica.com/doc/1667534
ﻣﺮادي، ﻣﻬﺪي، و ﭘﻮرﺣﺴﻴﻨﻲ، ﺳﻴﺪ ﻣﻬﺪي. ( 1389). ﺑﺮرﺳﻲ راﺑﻄﻪ ﺑﻴﻦ ﺑﺮﺧﻲ وﻳﮋﮔﻲ ﻫﺎي ﻣﺎﻟﻲ و ﻏﻴﺮ ﻣﺎﻟﻲ و ﻣﺪت زﻣﺎن اﺟـﺮا و ﺗﻜﻤﻴـﻞ ﻋﻤﻠﻴﺎت ﺣﺴﺎﺑﺮﺳﻲ در ﺷﺮﻛﺖ ﻫﺎي ﭘﺬﻳﺮﻓﺘﻪ ﺷﺪه در ﺑﻮرس اوراق ﺑﻬﺎدار ﺗﻬـﺮان. ﺗﺤﻘﻴﻘـﺎت ﺣﺴـﺎﺑﺪاري و ﺣﺴﺎﺑﺮﺳـﻲ، 1(1)، 168- 185. doi: 10.22034/IAAR.2009.105221
Ajina, A., Laouiti, M., & Msolli, B. (2016). Guiding through the Fog: Does Annual Report Readability Reveal Earnings Management?. Research in International Business and Finance, 38, 509-516. doi: 10.1016/j.ribaf.2016.07.021
Alexeyeva, I. (2024). Does board composition impact the timeliness of financial reporting? Evidence from Swedish privately held companies. Journal of International Accounting, Auditing and Taxation, 54, 1-14. doi: 10.1016/j.intaccaudtax.2024.100597
Aman,P.,hemmati, H., and Koudlouie, H. (2023). Psychological characteristics of auditors and delay in audit report. Journal of Professional Auditing Research, 3(12), 106-127. http://aapc.khu.ac.ir/article-1-1229-fa.html [In Persian]
Balsam, S., Krishnan, J., & Yang, J. S. (2003). Auditor industry specialization and earnings quality. Auditing:A journal of practice & Theory,22(2), 71-97. doi: 10.2308/aud.2003.22.2.71
Bamber, E. M. Bamber, L. S. & Schoderbek, M. P. (1993). Audit structure and other determinants of ARL: An empirical analysis. Auditing: A Journal of Practice& Theory, 12(1), 1–23. doi: https://publications.aaahq.org/ajpt/issue/12/1
Barzegar abbaspour, K., Eslami Mofid Abadi, H., & Ebrahimi Shaghaghi, M. (2023). The Effect of the Auditor Attributes and Board of Directors Structure on the Possibility of Fraudulent Financial Statements of Commercial Companies. Judgment and Decision Making in Accounting and Auditing, 2(7), 115-145. doi: 10.30495/jdaa.2023.705530 [In Persian]
Bozorg Asl, M., Rajabdorri, H., Khoramin, M. (2018). Investigating the Factors Affecting Timely Audit Reports. Journal of Accounting Knowledge, 9(1), 115-146. doi: 10.30495/jdaa.2023.705530 [In Persian]
Carcello, J. & Nagy, A. (2004). Audit firm tenure and fraudulent financial reporting. Auditing: A Journal of Practice & Theory, 23, 55-69. doi: 10.2308/aud.2004.23.2.55
Chen, C . J, Hongmei . X, Yang . Z,David. (2022). The effect of audit firm attributes on audit delay in the presence of financial reporting complexity. Managerial Auditing Journal, 37(2), 283-302. doi: 10.1108/MAJ-12-2020-2969
Dao, M., & Pham, T. (2014). Audit tenure, auditor specialization and audit report lag. Managerial Auditing Journal, 29(6), 490-512. doi: 10.1108/MAJ-07-2013-0906
DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of accounting and economics, 3(3), 183-199. doi: 10.1016/0165-4101(81)90002-1
Durand, G. (2019). The determinants of audit report lag: a meta-analysis. Managerial Auditing Journal, 34(1), 44-75. doi: 10.1108/MAJ-06-2017-1572
Etamadi, H., Yarmohammadi, A. (2012). Investigation of factors affecting timely interim reporting in companies listed on the Tehran Stock Exchange. Accounting Advances, 19)2(, 87-99. https://jaa.shirazu.ac.ir [In Persian]
Ettredge, Michael., Emeigh Fuerherm, Elizabeth., Li, Chan. (2014). Fee pressure and audit quality. Accounting, Organizations and Society,39, 247-263. doi: 10.1108/MAJ-06-2017-1572
Filzen, J. J. & Peterson, K. (2015). Financial Statement Complexity and Meeting Analysts’Expectations. Contemporary Accounting Research,32(4), 1560–1594. doi: 10.1111/1911-3846.12135
Habib, A., Bhuiyan, M. B. U., Huang, H. J., & Miah, M. S. (2019). Determinants of audit report lag: A meta-analysis. International journal of auditing, 23(1), 20-44. doi: 10.1111/ijau.12136
IazdiNia, N.; Fadavi, M.; Amini Niya, M. (2013). Investigating the impact of the transparency of the complexity of the company's accounting and financial reporting on the delay in the submission of the auditor's report. Accounting knowledge, 14(1):87-103. [In Persian]
Kim, Y. J., Kim, W. G., Choi, H. M., & Phetvaroon, K. (2019). The effect of green human resource management on hotel employees’ eco-friendly behavior and environmental performance. International Journal of Hospitality Management, 76(4), 83-93. doi: 10.1016/j.ijhm.2018.04.007
Leventis, S., Weetman, P., & Caramanis, C. (2005). Determinants of audit report lag: Some evidence from the Athens Stock Exchange. International. Journal of Auditing, 9(1), 4558. doi: 10.1111/j.1099-1123.2005.00101.x
Lobo, G.J. & Zhao, Y. (2013). Relation between Audit Effort and Financial Report Misstatements: Evidence from Quarterly and Annual Restatements. The Accounting Review, 88(4), 1385-1412. doi: 10.2308/accr-50440
Moradi, M.; Pourhosseini, S.M. (2009). Examining the relationship between some financial and non-financial characteristics and the duration of implementation and completion of audit operations in companies admitted to the Tehran Stock Exchange. Accounting and auditing research, 1(1), 168-185. doi: 10.22034/IAAR.2009.105221 [In Persian]
Nugroho, D. A., & Fuad, F. (2017). The influence of audit committee characteristics, executive compensation, and audit complexity towards corporate audit fee. Journal of Accounting, 6(4),1-11. doi: https://ejournal3.undip.ac.id/index.php/accounting/article/view/18678
Pourheidri, O.; Barhaninejad, S.; MohammadRezakhani, V. (2014). Examining the impact of audit quality on the timeliness of audit report in companies accepted in Tehran Stock Exchange. Accounting knowledge, 14(58): 85-104. https://www.sid.ir/fa/journal/ViewPaper.aspx?ID=252132 [In Persian].
Rezaei Pitenoei, Y., & Safari Qerayli, M. (2019). Financial reporting readability and the likelihood of fraudulent financial reporting. Financial Accounting Research, 10(4), 43-58. doi: 10.22108/FAR.2019.113858.1337 [In Persian]
Safarzadeh Bandari, Mohammad Hossein, Bagheri, Morteza and Abu Haidari, Elham (2023). The effect of auditor characteristics on the delay in audit reporting and the complexity of financial reports. The first international conference on management, commerce, economics and accounting. https://civilica.com/doc/1667534. [In Persian]
Salehi, M.; Momeni A. (2019). Investigating the impact of the size and complexity of the business unit's operations on the delay in submitting the audit report. New research approaches of management and accounting, 12(4): 77-88. https://majournal.ir/index.php/ma/article/view/364 [In Persian]
Sinason, D. H., Jones, J.P. & Shelton, S. W. (2001). An Investigation of Auditor and Client Tenure. American Journal of Business, 16(2), 31-44. doi: 10.1108/19355181200100010
Stock Exchange Organization (2007). Executive instructions for information disclosure of companies registered with the organization. Tehran. [In Persian]
Tanjung, A. H., & Aida, S. N. (2022). Effect of Company Size and Solvency on Audit Delay. Jurnal Akuntansi, Audit dan Sistem Informasi Akuntansi, 6(1), 1-14. doi: 10.36555/jasa.v6i1.1716
Zare Bahnamiri, M. J., Hasankhani, F. (2021). Auditor Characteristics and Audit Report Lag: A Meta-Analysis. Accounting and Auditing Review, 28(4), 664-690. doi: 10.22059/acctgrev.2021.317284.1008500 [In Persian]
Zare Bahnamiri, M. J., & Hasankhani, F. (2022). Organizational Complexity and Audit Report Lag: Meta-Analysis. Journal of Accounting Knowledge, 13(4), 161-177. doi: 10.22059/ACCTGREV.2021.317284.1008500 [In Persian]