Browsing by Author "Ritzlmayr, Matthew Andreas"

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    Exploring the reporting lag among JSE-listed entities
    (University of the Witwatersrand, Johannesburg, 2024) Ritzlmayr, Matthew Andreas; Maroun, Warren; Ecim, Dusan
    This thesis investigates how variations in “inherent”, “control” and “detection risk” may account for reporting lags for entities listed on the Johannesburg Stock Exchange (JSE) from 2017 to 2021. The reporting lag is the time between the financial year-end and the date of the audit report. Seven hypotheses are tested using panel regression and a sample of 100 companies listed on the JSE from 2017 to 2021. The regression analysis was performed to identify if client factors (classified as sources of inherent and control risk) or auditor characteristics (classified as sources of detection risk) may impact the reporting lag. A battery of sensitivity tests is used to confirm the findings. The model developed using inherent, control and detection risk, was able to explain the reporting lag. Entities characterised by higher levels of inherent and control risk show an increase in the reporting lag. An increase in detection risk also leads to an increase in the reporting lag. The article proposes a novel conceptual model for classifying client and auditor characteristics in terms of the risk which material misstatements in financial statements go undetected. The inherent, control and detection risk framework provides a comprehensive assessment of reporting lag determinants grounded in a well-established risk and assurance discourse which resonates with both academics and practitioners. Findings complement a relatively large body of work on reporting lags which prioritise developed economies. The results offer one of the first accounts of the reporting lags from a key African economy while controlling for the effects of pre-and post-COVID impacts.