Do investment in and the sourcing arrangement of the internal audit function affect audit delay?

• Main Authors: Wan Hussin, Wan Nordin, Bamahros, Hasan Mohammed
• Format: Article
• Language: English
• Published: Elsevier 2013
• Subjects: HF5601 Accounting
• Online Access: http://repo.uum.edu.my/16068/1/9.pdf; http://repo.uum.edu.my/16068/; http://dx.doi.org/10.1016/j.jcae.2012.08.001
• Institution: Universiti Utara Malaysia

This paper investigates the association between the internal audit function attributes and audit delay using a sample of 432 publicly traded firms in Malaysia in 2009. In this unique setting, we capitalize on the publicly available data concerning the investment in and the sourcing arrangement of internal audit function. We find a negative relationship between the costs incurred for the internal audit function and audit delay. However, we do not find any significant association between the internal audit function sourcing arrangements and audit delay. Additionally, we find that greater audit committee independence and longer auditor-client tenure shorten audit delay, and more frequent audit committee meetings and higher misstatements in the preliminary unaudited earnings are associated with a longer audit delay.