Panel data analysis reveals that audit firm size significantly affects audit timeliness in listed consumer goods firms, indicating a major role for auditor capacity in financial reporting.
The study evaluates the determinants of audit timeliness among consumer goods firms listed on the Nigerian Exchange Group (NGX) from 2012 to 2024. Using a panel dataset of 169 firm-year observations drawn from 13 listed consumer goods firms, specifically, the study examines how firm size (Fsize), profitability (Prof), financial leverage (Lev), board independence (Bind), and audit firm size (Audsize) influence audit timeliness (Audtim). Measured as the number of days from fiscal year-end to the audit report date. Prior to regression analysis, the study conducts normality test (Sharpiro-Wilk and Jarque-Bera), heteroskedasticity diagnostic (Breusch-Pegan and White tests), and Hausman test result (Chi-squared =34.25, p = 0.000) strongly supports the Fixed Effect (FE) model. The FE regression result reveal that audit firm size (Audsize) exerts a significant positive effect on audit timeliness (p=0.000), while board independence (Bind) approaches significance at the 10% level (p =0.096). Firm size, profitability, and leverage do not significantly influence audit timeliness within the within-firm variation framework. The study recommends strengthened regulatory enforcement of reporting deadlines, improved firm-level reporting infrastructure, and structured audit engagement timelines between Big 4 firms and their Nigerian consumer goods clients.
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Oto et al. (2026) studied this question.
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