ISSN: 2225-8329
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The study was conducted to explore the impact of auditor industry specialization (AIS) on the relationship between audit firm engagement tenure and audit report lag (ARL). The study is motivated by the public demand for timely release of financial information and the ongoing debate on mandatory auditor rotation. To achieve the broad objective, the determination of the following specific objectives are critical; One (1) to establish the relationship between audit firm engagement tenure and audit report lag, and two (2) the impact of AIS on the association between audit firm engagement period and ARL in Ghana. The study adopted the regression model used by Dao and Pham (2014); Habid and Bhuiyan (2011) using secondary data from selected enterprises listed on Ghana’s Stock Exchange. Following the analysis and interpretation of the research data, the study discovered among others that, a substantial positive correlation exists between short-term audit tenure and audit delay implying that short-term audit tenure increases audit delay. It was also found that, the correlation between audit delay and return on assets was insignificant and that a substantial negative correlation existed between audit delay and leverage. The study also discovered a substantial positive link between audit delay and firm size and that both regression models were not significant. The study established that AIS at the city, national and city-national levels does not moderate the relationship between audit firm tenure and audit report lag. The study recommended to companies to rotate their auditors every 6 years to improve the independence of auditors, reduce ARL and also comply with the requirement of the company’s Act 2019 (Act 992). The study further recommended that companies should engage the services of auditors based on fees charged and quality of audit work. The study provided detailed information for selecting an auditor in Ghana.
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In-Text Citation: (Domogoun & Awinepoya, 2022)
To Cite this Article: Domogoun, F. D., & Awinepoya, S. A. (2022). Audit Tenure, Auditor Specialization and Audit Report Lag: The Case of Companies Listed on Ghana Stock Exchange. International Journal of Academic Research in Accounting Finance and Management Sciences. 12(2), 370 – 391.
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