Original scientific paper

Finding determinants of audit delay by pooled OLS regression analysis

Tina Vuko orcid.org/0000-0002-7030-2130 ; University of Split, Split, Croatia
Marko Čular ; University of Split, Split, Croatia

Abstract

The aim of this paper is to investigate determinants of audit delay. Audit delay is measured as the length of time (i.e. the number of calendar days) from the fiscal year-end to the audit report date. It is important to understand factors that influence audit delay since it directly affects the timeliness of financial reporting. The research is conducted on a sample of Croatian listed companies, covering the period of four years (from 2008 to 2011). We use pooled OLS regression analysis, modelling audit delay as a function of the following explanatory variables: audit firm type, audit opinion, profitability, leverage, inventory and receivables to total assets, absolute value of total accruals, company size and audit committee existence. Our results indicate that audit committee existence, profitability and leverage are statistically significant determinants of audit delay in Croatia.

Keywords

audit delay; timeliness of corporate reporting; listed companies

Hrčak ID:

120194

URI

https://hrcak.srce.hr/120194

Publication date:

31.3.2014.

Visits: 4.021 *