The role of auditor’s gender and audit firm size on the audit report lag and the role of key audit matters as a moderating variable

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Abstract

Due to its potential to impact the timeliness of accounting information used by both internal and external users in their decision-making, audit report lag (ARL) is a significant problem (Mardi et al., 2020). Thus, the study looked at how the size of the audit firm and the gender of the auditor affected the ARL as well as how key audit matters (KAMs) functioned as a moderating factor in Jordanian companies that were listed on the Amman Stock Exchange (ASE). A correlational research strategy was employed in the study. The information gathered between 2016 and 2020 from the 144 Jordanian enterprises mentioned in their published annual financial reports. The findings indicated a substantial inverse link between audit report delays and audit firm size. Furthermore, there exists a negligible but positive correlation between the gender of auditors and the latency of audit reports. This study also discovered that, in relation to audit report latency, KAMs may function as a moderator between audit company size and auditor gender. It is advised that scholars investigate new businesses and employ alternative approaches in the future. Future studies might examine components like the opinion of the auditors and the auditors’ remuneration.

Keywords: Audit Report Lag, Audit Firm Size, Auditors’ Gender, Key Audit Matters, Jordan

Authors’ individual contribution: Conceptualization — O.A.; Methodology — O.A. and Z.S.; Investigation — O.A. and S.I.; Resources — O.A., Z.S., and S.I.; Writing — O.A. and S.I.; Supervision — O.A.; Funding Acquisition — O.A. and Z.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M41, M42, M48

Received: 12.06.2023
Accepted: 01.04.2024
Published online: 05.04.2024

How to cite this paper: Alhawamdeh, O., Salleh, Z., & Ismail, S. (2024). The role of auditor’s gender and audit firm size on the audit report lag and the role of key audit matters as a moderating variable. Corporate Governance and Organizational Behavior Review, 8(2), 73–81. https://doi.org/10.22495/cgobrv8i2p7