DETERMINANT OF AUDIT REPORT LAG ON QUOTED MANUFACTURING FIRMS IN NIGERIA

This study examined the impact of firm attributes on audit delay of quoted manufacturing firms in Nigeria. Specifically, the study focused on firm size, firm profitability, and firm age in determining their effect on audit lag. The conceptual framework drew on agency theory, which explains how structural firm attributes influence reporting outcomes, and rational expectation theory, which relates to audit delay and profitability. A correlational research design was adopted, with a population of 74 quoted manufacturing firms as of 2015, out of which 21 firms were selected using Yamane’s sample size formula. Data were analyzed using panel regression models, incorporating both fixed and random effect tests. The results revealed that firm attributes significantly affect audit delay, with firm size showing a positive and significant impact, while firm profitability and firm age exhibited significant negative impacts. Collectively, the explanatory variables accounted for 33.40% of the variation in audit delay among the sampled firms. Based on these findings, the study concludes that larger firms are more prone to longer audit delays, while profitability and maturity in age enhance prompt financial reporting. The study recommends that managers of manufacturing firms adopt timely reporting mechanisms despite organizational complexities, strengthen profitability strategies to enhance reporting efficiency, and maintain strong internal control systems, especially in older firms, to reduce audit time. It further suggests that regulators intensify monitoring and enforce policies to minimize delays in financial reporting. Future research should explore the role of audit firm characteristics and corporate governance variables in explaining audit delays across sectors in Nigeria.