How auditor locality affects audit report timeliness

Abstract

Purpose

Despite extensive research on the determinates of audit report timeliness, there is limited empirical evidence on the effect of auditor locality on audit report timeliness. Therefore, this study aims to examine the relationship between auditor locality and audit report timeliness. Furthermore, this study investigates the moderating roles of audit committee, corporate governance and auditor quality in this relationship.

Design/methodology/approach

In this study, the information of 157 companies listed on the Tehran Stock Exchange during the period 2013–2019 has been collected. Moreover, multivariate linear regressions were used to test the hypotheses.

Findings

Findings show that in general, there is no significant relationship between auditor locality and audit report timeliness. However, empirical evidence suggests that in companies with specialized audit committees, strong corporate governance and high-quality auditors, auditor locality improves audit report timeliness.

Originality/value

Overall, the results indicate that there are some circumstances in which auditor locality affects the audit report timeliness. Specifically, the association of auditor locality and audit report timeliness is conditional to audit committee, corporate governance and auditor quality.

Citation

Bazrafshan, A. and Dehghani Madise, S. (2022), "How auditor locality affects audit report timeliness", Journal of Facilities Management, Vol. 20 No. 2, pp. 306-321. https://doi.org/10.1108/JFM-12-2020-0093