（2006）A Within Firm Analysis of Current and Expected Future Audit Lag Determinants.pdfVIP

JOURNAL OF INFORMATION SYSTEMS Vol. 20, No. 1 Spring 2006 pp. 65–86 A Within Firm Analysis of Current and Expected Future Audit Lag Determinants Bruce K. Behn The University of Tennessee DeWayne L. Searcy Auburn University Jonathan B. Woodroof The 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 signifi- cantly 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. Contact second author. I. INTRODUCTION he Securities and Exchange Commission (SEC) has released its final regulations on Tthe acceleration of periodic reporting dates required by public firms in accordance with the Sarbanes-Oxley Act (SEC 2002). After a short phase-in period, companies will be required to file their 10-Ks wit