Finding determinants of audit delay by pooled OLS regression analysis

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 scal year-end to the audit report date. It is important to understand factors that in uence audit delay since it directly a ects the timeliness of nancial 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 rm type, audit opinion, pro tability, 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, pro tability and leverage are statistically signi cant determinants of audit delay in Croatia.