Moderating Effect of Audit Liberty on Reporting Timeliness of NonBank Financial Firms in Nigeria

This study investigated the effect of auditors’ liberty on audit reporting timeliness of financial firm in Nigeria from (2011-2020). Two research hypotheses were formulated for the study. Expost facto research design was employed in the study. The population of the study included all financial firms quoted and trading on the Nigerian Exchange Group (NXG) (NSE) as at 31st December 2021 with a sample size of Twenty-three (23) financial firms selected from the population sector. The study relied on secondary sources of data which was obtained from Annual reports of sampled firms as provided by individual firms and Nigerian Exchange Group (NXG) website. Random Effect Panel least square regression analysis was employed in validating the hypotheses. The study revealed a significant negative effect of audit fees on audit reporting timeliness while there is no moderating effect of audit committee gender diversity on the association between audit fee and audit reporting timeliness. Consequent on the findings, the study therefore recommends amongst others that companies should engage Audit firms with better exposure who will put due diligence and professional ethics above any pressure resulting from high or low fee. The study also recommended that firms should budget an optimal amount for audit fees to ensure they do not spend more than necessary yet not compromising audit quality and reporting timeliness. Further studies can be undertaken on other specific factors that affect audit report lag in manufacturing companies and the oil and gas sector.