A Within Firm Analysis of Current and Expected Future Audit Lag Determinants

Bruce K. Behn
University of Tennessee

DeWayne L. Searcy
Auburn University

Jon B. Woodroof
University of Tennessee
 

ABSTRACT:

This paper reports the impediments identified by practicing auditors that keep them from significantly reducing the time lag between closing and issuing their report. We obtain these impediments by surveying the U. S. assurance partners of an international audit firm. Our results suggest that lack of sufficient personnel resources, both with the client and the audit firm hindered a significant reduction in prior audit report lags. In addition, the partners believe that before audit report lags are significantly reduced, the clients’ and the auditor’s mindset must change to accommodate a new audit approach. Even if the mindset of both parties is changed, the partners believe the skill-set of auditors must improve and the flexibility of the scheduling process must increase. Implications of the results for continuous auditing are also discussed.

Keywords: Audit Lag, Impediments, Continuous Audit

Data Availability: Data collected are confidential.