THE EFFECT OF AUDIT COMMITTEE CHARACTERISTICS ON FINANCIAL STATEMENT TIMELINESS

Financial statement timeliness represents a fundamental qualitative characteristic of useful accounting information, yet corporate reporting delays persist globally, undermining investor confidence and capital market efficiency. This monograph presents a systematic investigation of how audit committee characteristics influence the timeliness of financial statements, measured through audit report lag. Grounded in agency theory and resource dependence theory, the study examines four core audit committee attributes: independence, financial expertise, size, and meeting frequency. Through a comprehensive review of empirical evidence from 2020 to 2026 across developed and emerging markets, the findings demonstrate that audit committee financial expertise consistently reduces audit report lag, while the effect of independence is contingent upon broader board structures. Meeting frequency exhibits paradoxical effects, reducing delays in some contexts but extending them in environments characterised by high earnings management concerns. Audit committee size shows no consistent direct effect on timeliness. The research objectives are: (1) to analyse the relationship between audit committee independence and financial statement timeliness; (2) to examine the effect of audit committee financial expertise on audit report lag; and (3) to assess the influence of audit committee meeting frequency and size on reporting timeliness. This monograph contributes theoretical and practical insights for regulators, corporate boards, and investors seeking to enhance financial reporting timeliness through effective audit committee design.
Keywords: Audit committee, financial statement timeliness, audit report lag, corporate governance, audit committee independence, financial expertise