Author:
Qasem Ameen,Wan-Hussin Wan Nordin,Al-Qadasi Adel Ali,Ghaleb Belal Ali Abdulraheem,Bamahros Hasan Mohamad
Abstract
Purpose
This study aims to assess whether non-financial corporate social responsibility (CSR) information decreases audit risk and audit scope and enables speedier completion of audit reports. The study also investigates whether institutional investors’ ownership (IIO) has an influence on the association between CSR disclosures and audit report lag (ARL).
Design/methodology/approach
This study uses a sample of 154 Saudi firms over 2016–2021 (837 observations) and applies ordinary least square regression to examine the study hypotheses.
Findings
This study’s results show that ARL is significantly shorter for firms with higher CSR disclosures. Furthermore, the findings show that IIO has no significant impact on the association between CSR disclosures and ARL.
Originality/value
This study offers new insights into how auditors respond to CSR disclosures and whether institutional investor monitoring influences the audit process in an emerging economy.
Subject
Economics, Econometrics and Finance (miscellaneous),Accounting,Management Information Systems
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