Determinants of Bifurcated Local Government Reporting Lag: The Potential for XBRL to Improve Timeliness

2018 ◽  
Vol 15 (1) ◽  
pp. 121-140 ◽  
Author(s):  
Shannon N. Sohl ◽  
Tammy R. Waymire ◽  
Thomas Z. Webb
Keyword(s):  
Local Governments ◽  
Financial Information ◽  
Fiscal Year ◽  
Audit Report ◽  
Audit Process ◽  
Financial Reports ◽  
Audit Firm ◽  
Recent Developments ◽  
Release Of Information ◽  
Pdf Format

ABSTRACT Government financial reports are often released six months or more after the reporting government's fiscal year-end, and this lag limits usefulness. In a sample of 1,693 Illinois local governments, we examine the determinants of total reporting lag, bifurcating it into two distinct components: (1) audit report lag (ARL), i.e., fiscal year-end to the audit report date, and (2) regulatory reporting lag (RRL), i.e., the audit report date to submission with the State of Illinois Office of the Comptroller. These governments are required to provide regulatory filings in both PDF format and as digital financial information within 180 days of fiscal year-end. We find that prior year ARL is the biggest determinant of current year ARL and that audit firm expertise is associated with shorter ARL. In contrast, audit firm expertise is associated with longer RRL, as is slack, i.e., the number of days left in the 180-day reporting window, suggesting that balancing the demands of multiple government clients is a factor in filing time. Given recent developments in government reporting taxonomies, XBRL is well positioned as a tool to eliminate the RRL by automating the post-audit process, resulting in the timelier release of information in a consumable format to external users.

scholarly journals A review of the empirical determinants of audit delay

2012 ◽  
Vol 9 (2) ◽  
pp. 511-514 ◽  
Author(s):  
Salem Eghlaiow ◽  
Guneratne Wickremasinghe ◽  
Stella Sofocleous
Keyword(s):  
Financial Reporting ◽  
Accounting Information ◽  
Fiscal Year ◽  
Audit Report ◽  
Financial Reports ◽  
Significant Characteristic

Timeliness in financial reporting is considered to be a significant characteristic of accounting information. Since audit delay has been found to be the single most important factor in determining the timing of financial reports releases, this concept paper discuss the determinants of “audit delay”, the number of calendar days from fiscal year-end to the audit report date. The first section sheds some light on the significance of studying the determinants of audit delay. Next, it reviews the literature on audit report delay (ARL) and its determinants.

scholarly journals Determinants of Audit Report Lag of Financial Statements in Banking Sector

2019 ◽  
pp. 142
Author(s):  
Sigit Handoyo ◽  
Erza Diandra Maulana
Keyword(s):  
Sampling Method ◽  
Banking Sector ◽  
Stock Exchange ◽  
Financial Statements ◽  
Fiscal Year ◽  
Audit Report ◽  
Financial Service Authority ◽  
Firm Reputation ◽  
Financial Reports ◽  
Auditor Switching

Audit Report Lag (ARL) is the time length of the auditor completing their activities on the client is measured from the end of the fiscal year until the date of audit report was signed. Research related to ARL has been widely carried out in some countries, considering the importance of this issue. This study analyzed the factors that affect ARL on the Conventional Bank Companies listed in the Indonesia Stock Exchange. The sample consisted of 84 companies listed in Indonesia Stock Exchange (IDX) which submitted financial reports to OJK (the Financial Service Authority) in the period of 2013-2015. The data used in this research was selected by using purposive sampling method and analysis used multiple linear regression. Based on the analytical results, Profitability, Auditor Opinion, and Firm Reputation had negative significant effect toward ARL. Then Auditor Switching, Complexity, and Board of Size of Director had positive significant effect toward ARL.

Office-Level Characteristics of the Big 4 and Audit Report Timeliness

2014 ◽  
Vol 33 (3) ◽  
pp. 129-152 ◽  
Author(s):  
James D. Whitworth ◽  
Tamara A. Lambert
Keyword(s):  
Financial Reporting ◽  
Low Cost ◽  
Fiscal Year ◽  
Audit Report ◽  
Audit Firm ◽  
Big 4 ◽  
Office Size ◽  
Reporting Environment ◽  
The Impact ◽  
Industry Expertise

SUMMARY: Recent changes in the audit and financial reporting environment have resulted in longer audit report lags and have increased the importance of identifying factors associated with a timely audit. We examine timeliness implications of office-specific attributes of the audit firm. Specifically, we examine whether office-specific industry expertise, office size, and the importance of the client to the local office are associated with audit delay (i.e., the time between fiscal year-end and the audit report date). We explore the sensitivity of our results to various measures and consider the impact of earnings quality. We examine two types of industry expertise and whether the aforementioned audit firm attributes are associated with a propensity to issue an early earnings announcement. We find that office-specific industry expertise is negatively associated with audit delay (for all but the largest quartile of firm offices) while office size and client importance are both positively associated with audit delay; however, the most important clients are associated with a more timely audit. Office-specific industry expertise is positively associated with the propensity to announce earnings substantially early and such expertise garnered via a product-specialist strategy is positively associated with audit delay relative to a low-cost specialist strategy. Our study provides further support for the importance of office-specific characteristics on audit and financial reporting outcomes and provides evidence of the benefit of office-specific industry expertise.

scholarly journals Increasing Creasing Transparency and Efficiency: An Examination of County Government Note Disclosures

2016 ◽  
Vol 5 (2) ◽  
pp. 59 ◽  
Author(s):  
Steve Modlin
Keyword(s):  
Local Governments ◽  
Insurance Coverage ◽  
Internal Controls ◽  
Fiscal Year ◽  
County Government ◽  
Audit Process ◽  
County Governments ◽  
State Laws ◽  
Generally Accepted Accounting Principles ◽  
The Many

Local government financial audits have provided increased transparency into the many transactions that take place over an entire fiscal year. In many of these cases, it can be determined if local governments have followed state laws, observed generally accepted accounting principles, and established proper internal controls. However, implementation of stricter state guidelines and more stringent accounting standards have not eliminated reporting errors. For these reasons, notes that accompany financial statements are not only useful for clarification and information purposes, but also to question various reporting aspects among statements. This study examines the fiscal year 2009 independent auditor findings among note disclosures in professionally administered county governments in North Carolina. Findings indicate numerous reporting problems within a majority of county governments ranging from employee retirement funding to inadequate insurance coverage and unexplained asset amounts. A more involved county manager, more internal staff dedicated to the audit process, and collaboration in auditor selection are all significant in reducing the number of note disclosure errors.

scholarly journals DETERMINAN AUDIT REPORT LAG (STUDI EMPIRIK PADA PERUSAHAAN LQ-45 TAHUN 2014-2018)

2021 ◽  
Vol 4 (2) ◽  
pp. 146-159
Author(s):  
Adibah Yahya
Keyword(s):  
Financial Distress ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Fiscal Year ◽  
Audit Report ◽  
Return On Assets ◽  
Financial Reports ◽  
Accounting Firm ◽  
The Public

The company's financial performance for each period is always reported in the form of audited financial reports, especially for companies listed on the Indonesia Stock Exchange (IDX). In the submission of the audit report, there is a time difference between the end of the fiscal year and the date of issuance of the audit report, which is called the audit report lag. The factors that affect the audit report lag include company size (Size), Return On Assets (ROA), Financial Distress (FD) and the size of the Public Accounting Firm (KAP). This study aims to determine the effect of these factors on the audit report lag (ARL). The research method used in this research is multiple linear regression analysis method, with a sample of companies LQ-45 listed on the IDX in 2014-2018. The results of the analysis show that simultaneously Size, ROA, FD and KAP have an effect on ARL, while Size and KAP partially affects ARL, ROA and FD have no effect on ARL.

Audit Report Lags after Voluntary and Involuntary Auditor Changes

2010 ◽  
Vol 24 (4) ◽  
pp. 671-688 ◽  
Author(s):  
Paul Tanyi ◽  
K. Raghunandan ◽  
Abhijit Barua
Keyword(s):  
Empirical Evidence ◽  
Fiscal Year ◽  
Future Research ◽  
First Year ◽  
Audit Report ◽  
Cost Component ◽  
Big 5 ◽  
Audit Firm ◽  
Auditor Rotation ◽  
Second Year

SYNOPSIS: We find that the audit report lag is significantly higher for former Andersen clients (that did not follow their Andersen partner to the new audit firm) than for clients voluntarily changing auditors from another Big 5 predecessor for the fiscal year ended December 31, 2002 (the first year with the new auditor for ex-Andersen clients). The differences in audit reporting lags between the two groups are not significant for fiscal years ended December 31, 2000 (the last year before Andersen’s Enron related problems surfaced), or 2003 (the second year with the successor auditor). We also find that clients with voluntary (i.e., non-Andersen) auditor changes have only marginally higher audit reporting lags compared to clients without auditor changes. Our results, focusing on a cost component of involuntary auditor changes, thus provide relevant empirical evidence for debates surrounding mandatory auditor rotation. We also find that ex-Andersen clients that followed the Andersen partner to the new audit firm had shorter audit report lags than ex-Andersen clients that did not follow their Andersen partner. Our findings highlight the importance of individual relationships in the auditing process, and suggest new avenues for future research.

scholarly journals Pengaruh Profitabilitas dan Komite Audit terhadap Audit Report Lag pada Perusahaan Sub Sektor Property dan Real Estate (2017-2018)

2020 ◽  
Vol 20 (2) ◽  
pp. 388
Author(s):  
Samuel Parlindungan Silalahi ◽  
Harman Malau
Keyword(s):  
Real Estate ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Audit Committees ◽  
Fiscal Year ◽  
Audit Report ◽  
Audit Process ◽  
Other Information

This study aims to determine the effect of profitability and audit committee on audit report lag of companies listed on the Indonesia Stock Exchange in the property and real estate sub sector in 2017-2018. This study uses descriptive methods in finding relationships between variables that provide a detailed description of a phenomenon by conducting linear regression analysis. The method of collecting data uses a passive participatory observation method where the researcher observes but is not directly involved in the activity. Through this method has been carried out by studying, classifying, and analyzing secondary data in the form of independent auditor's reports, financial reports and other information related to the scope of this research. Audit report lag, which is the time difference that occurs when the end of the fiscal year with the date of issue in the audit report. This variable is the dependent variable that is measured by the interval of the number of days between the date of the financial statements until the date the auditor's report is signed. The variables that affect are profitability and the audit committee. Profitability will be measured using the ratio of Return on Assets (ROA). The audit committee will be deducted by dividing the total members of the audit committee by the total members of the board of commissioners. The results of this study are profitability and audit committee does not significantly affect audit report lag by having a positive relationship. Audit report lag will increase due to the company's high profitability and the greater proportion of audit committees, resulting in a longer audit process.

Determinant of Audit Report Lag Among Mining Companies in Indonesia

2019 ◽  
Vol 15 (1) ◽  
pp. 68
Author(s):  
Sari Angriany Natonis ◽  
Bambang Tjahjadi
Keyword(s):  
Stock Exchange ◽  
Sampling Technique ◽  
Annual Reports ◽  
Fiscal Year ◽  
Company Size ◽  
Audit Report ◽  
Public Accounting ◽  
Audit Opinion ◽  
Accounting Firm ◽  
Mining Companies

Time period in completing the audit work until the date of publishing audit report is called audit report lag. BAPEPAM requires each of going-public companies to publish their annual reports not later than three months after the fiscal year ends. The aim of this research was to determine the effect of profitability, solvency, company size, audit opinion, and size of public accounting firm on audit report lag at mining companies listed on Indonesia Stock Exchange during the period of 2013-2017. As many as 12 samples were obtained through purposive sampling technique. The data analysis technique used was the multiple regression analysis. The results showed that the profitability and company size negatively affected the audit report lag, while the other variables, such as solvency, audit opinion, and size of public accounting firm, had no significant effect on the audit report. The result of simultaneous test showed that all independent variables influenced audit report lag with 32.8% of determination coefficient.

Guns on Campus: Surveying a rugged post-Heller/ McDonald landscape

2013 ◽  
Vol 45 (1-2) ◽  
pp. 77-108 ◽  
Author(s):  
Leif Magne Lervik
Keyword(s):  
Local Governments ◽  
Public Colleges ◽  
Concealed Weapons ◽  
Second Amendment ◽  
Academic History ◽  
Recent Developments ◽  
State And Local ◽  
Public Colleges And Universities ◽  
The Right ◽  
The U.S

In June 2008, the U.S. Supreme Court ruled that the Second Amendment to the U.S. Constitution guarantees an individual the right to keep and bear arms. Two years later, this decision was also made applicable to state and local governments. Today, seven U.S. states have provisions allowing the carrying of concealed weapons on their public senior high school campuses. This article, introduced by a brief comment on the Second Amendment’s legal and academic history, traces several recent developments of legal change. It discusses relevant arguments and attitudes towards guns on campus, and explores issues of future concern for public colleges and universities within the realm of firearms and campus safety.

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