Audit Report Timeliness in Local Governments: An Investigation of Entities Exceeding Reporting Deadlines

• In Event: Auditing of Local Governments and Nonprofits

Abstract

The purpose of this study is to identify variables that influence audit timeliness in governments. This research utilizes logistic regression to estimate the effects of several variables of interest on the incidence of filing reports after state-mandated filing deadlines. The research also utilizes ordinary-least-squares regression to estimate the effect of those variables on time it takes to file audit reports with the state auditor’s office. Variables found to be associated with both longer audit report delay and late audits include the number of audit findings and the receipt of an adverse or qualified audit opinion. Travel distance between the auditor’s office and the client’s office was also found to play a role in timeliness. A greater amount of long-term debt carried by the governmental entity was not found to be associated with shorter audit delays but was found to be somewhat associated with audits filed on time.

Authors

• Corey Steven Cagle, University of North Alabama

• Dale L Flesher, The University of Mississippi

• Annette K Pridgen, The University of Mississippi