The Impact Of The Customer’s Internal Supervision On Audit Report Delay

There are eight requirements of financial statements quality. Timeliness, as one of them is not allowed to ignore. Timeliness requires companies to confirm, measure and report transactions or events in time; it should not be advanced or delayed. We know that the investors need to use the enterprise’s financial information to make decisions, but the effectiveness of the financial information relies on its timeliness. Only when the investors make effective decisions, the capital market can run more effectively. Thus it can be seen that the financial reporting timeliness will directly affect the quality of the disclosure of listed companies’ financial information. Before the listed companies disclose their financial reports, those reports must be audited by an independent third party, so the timeliness of financial report depends on the timeliness of audit report. So to some extent, the audit report timeliness is a part of the timeliness of financial reporting. Delay disclosure of audit opinion may increase uncertainty of investors’decisions and damage the information symmetry, which will affect the confidence of the investors in the capital market. Therefore, only when the management completes the organization of annual financial report on time and the auditors complete the audit work and submit the audit reports on time, the investors’confidence can be boosted. We know that every listed company’s annual reports need to be audited by certified public accountants; the period from the time start auditing to the time sign the audit report is inevitable, which is called appropriate time delay. After the certified public accountants issued the audit opinion, the company’s management will be involved in, and the management has the right to decide the final issue time of the report, this paragraph of time is called allowance delay. The allowance delay is a period of time between the statement day and the audit report issue day. So the report delay reflects the timeliness of audit report. The longer the report delay, the later the audit report will be.According to the historical study of ARL, there are not many indexes to measure the audit effectiveness; audit report delay is one of them. It is the most important element to see whether the disclosure of company’s profit information is on time. The earlier the audit report issued, the disclosure of the information is timelier, and the value of financial information is higher. If there is a long time delay, the audit report financial information disclosure is not timely, the demanders of information say investors may obtain the required financial information by alternative means, but this kind of access may be high cost, so the behavior of investors may weakens the value of financial information, and also weakens the value of the audit. Therefore, in order to improve the value of financial information, the company’s financial report should be disclosed more timely, and make a deep research of the disclosure of audit reports.In January 2002, The listed corporate governance principles was issued in our country, the guidelines allow the board of directors of the listed companies set up committees. It may include audit, decision-making and nomination committee. As one of the most important committees of the board of directors, audit committee’s responsibility is supervising the process of enterprise annual financial report preparation and ensuring its timely disclosure, therefore, for the audit committee, only to find the factors that influence the efficiency of the committee, can help audit report to be timely disclosure.In this paper, we use the empirical and normative research method, through many studies of a-share listed company’s audit report, combined with the application of multiple linear regression method, can effectively test the audit committee meeting, professionalism, independence, and the number of times that delay the impact on the audit report. It can be seen that in a series of related research in audit report, the number of audit committee meetings and professional has significant influence on audit report lag, the size of the listed company and the audit opinion is obtain has significant influence on timeliness as well, in addition, the audit committee independence and the size of the committee don’t have significant influence on audit report lag. Therefore, compared with many foreign countries and the world level, the audit technique and quality of our country is still not sophisticated. The essay will further contribute to theoretical study of the development of local CPA firms.Many scholars in and out our county have studied the influence factors of audit report delay and have made a lot of achievements, but most of the characteristics based on the company, firm’s characteristics and the influence of sarbanes-oxley, and the audit committee in corporate governance and its characteristics of audit report had less research on the effects of time delay. Through research and analysis of this article, you can see that the audit report delay is shorted by the scale of audit committee and the meetings it holds. Therefore, for the audit committee, can improve the timeliness of audit and improve their work level and working ability. In this paper, the author’s study on the factors associated with the time delay of the audit report is also has vital significance to the theoretical study of audit report lag.