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Publication date: 28 January 2025

Mohammad Nasser Almarzouq, Souod Alazemi, Abdulrahman Alrefai and Abdullah Alawadhi

This study examines joint audits’ impact on financial statement timeliness in emerging markets in Kuwait.

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Abstract

Purpose

This study examines joint audits’ impact on financial statement timeliness in emerging markets in Kuwait.

Design/methodology/approach

We use a sample of nonfinancial firms listed on the Kuwait Stock Exchange from 2000 to 2020.

Findings

We find that joint audits are significantly negatively associated with financial statements’ timeliness. This suggests that firms employing two auditors (joint audits) issue their financial statements in relatively shorter periods. Our results are robust and consistent with our initial findings, even after assessing the impacts of the Big 4, profitability and firm size on them.

Practical implications

The findings show that mandating joint audits decreases audit report lag (ARL). We recommend that regulators and policymakers consider the potential implications of removing mandated joint audits, such as longer ARL.

Originality/value

This study contributes to the limited literature on joint audits and timeliness by exploring their relationship in the context of listed nonfinancial firms in an emerging market. The findings contribute to the ongoing debate about the costs and benefits of joint audits by showing the improvement of financial reporting timelines. Our findings assist regulators and policymakers in determining whether to implement or abolish joint audits.

Details

Asian Journal of Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2459-9700

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