Audit Firm Rotation and Audit Report Lag in Nigeria

Abstract

Audit firm rotation and audit report lag has been a topical issue to regulators, investors, practitioners and the public at large. Hence, this study is designed to determine the relationship between audit firm rotation and audit report lag in Nigeria. Secondary data gathered from the 2011 annual reports of fifty (50) randomly selected companies, quoted on the floor of the Nigerian Stock Exchange (NSE) were employed in the study. The Ordinary Least Square technique (OLS) was used in the analysis of the relationship between the dependent and independent variables. The study reveals that audit fees, year-end and audit firm type all have positive relationship with audit report lag. The research also establishes that audit firm rotation and company size have a negative insignificant relationship with audit report lag.