Audit Structure and the Clock: How Committee Composition Influences Audit Reporting Timeliness in Listed Companies in Nigeria

Abstract

Abstract This study investigated the influence of audit committee structure specifically audit committee size and the proportion of non-executive members on audit reporting timeliness among industrial goods companies listed on the Nigerian Exchange Group (NGX). Using an ex post facto research design, secondary data from audited financial reports covering the period 2019 to 2023 were analyzed for a purposive sample of 10 companies. Panel least squares regression was employed to assess the impact of audit committee size and non-executive membership on audit reporting lag, measured as the number of days between the financial year-end and the audit report issuance date. The results showed that audit committee size had a significant negative effect on audit reporting lag, with a coefficient of -21.78 (p = 0.0369), while the proportion of non-executive members also significantly reduced reporting lag, with a coefficient of -8.41 (p = 0.0368). These findings indicated that larger audit committees and higher non-executive membership contributed to faster audit report completion. The study concluded that robust audit committee structures enhance financial reporting efficiency and corporate governance quality. It recommended that Nigerian listed companies and regulators strengthen audit committee composition to promote timely financial disclosures and greater transparency.