Audit report lag and its contemporary issues: a comparative review of literature

Purpose This study aims to provide a comprehensive review of the existing literature on audit report lag (ARL), analyzing the factors influencing ARL, emerging trends and implications for financial reporting timeliness and audit quality. While earlier research established foundational insights into ARL determinants, recent advancements–including advancements in data-driven technology, regulatory changes, managerial behaviors and socio-economic developments–call for a renewed perspective. Design/methodology/approach A systematic review of 81 articles published between 2018 and 2023 was conducted to achieve the study's objective. Building on prior influential studies, such as those by Durand (2019) and Habib et al. (2019), this review extends the analysis of ARL determinants beyond 2017 to capture recent developments and insights. This comparative analysis aimed to highlight overlaps and introduce a new categorization of ARL determinants based on contemporary research findings. Findings Approximately 37% of recent research addresses emerging ARL determinants, including managerial influences such as earnings management, tax avoidance, and managerial overconfidence, as well as external factors such as data-driven technology, IFRS adoption and corporate social responsibility. A new categorization framework identifies ARL determinants across audit firm, company and external levels, emphasizing the growing importance of external factors such as regulatory changes, technological advancements and socio-economic influences, including political connections and cultural norms, on audit timelines and reporting efficiency. Originality/value This study offers valuable insights for researchers, practitioners and policymakers, enhancing their understanding of the complexities surrounding ARL and its impact on financial reporting timeliness and quality.