AUDIT FEES AND TIMELINESS OF AUDIT REPORT OF LISTED INDUSTRIAL FIRMS IN NIGERIA

Abstract

This study examined effect of audit fees on timeliness of audit report of listed industrial firms in Nigeria. Population of the study comprised of all the 14 listed industrial firms on the floor of the Nigerian Stock Exchange (NSE). A purposive sampling technique was used to arrive at a sample size of thirteen (13) based on the availability of data. The research used secondary sources of data collection covering a period of seven (7) years from 2012 to2018.The dependent variable is timeliness (TML) while the independent variable is Audit fees (AUDFEE). Multiple regression analysis with Random Effects Model was employed to analyze data. The panel data result which was estimated through the use of Ordinary Least Square (OLS) method showed that AUDFEE is statistically significant hence, have significant effect on audit report timeliness. The study concludes among others that companies pay auditors less, they will ensure prompt release of audit report as auditors tend to spend less time for auditing when given lesser fees and in return provide audited annual reports and accounts within a shorter time frame. It is therefore recommended that, to ensure timeliness of audit report in Nigeria, regulatory and enforcement agencies ought to investigate audit delay and articulate policies that would put in force compliance with the timely release of audited annual reports and accounts.