Effect of Client Size Determinants on Audit Report Lag in Money Deposit Banks in Nigeria

This study explored the effect of client size on audit report lag in money deposit banks in Nigeria. The study adopted explanatory research design. The population of the study comprised of some selected Deposit money banks, out of which some are selected as a case study for the period from 2010 to 2021. Secondary data was sourced from the annual reports of the Web pages of selected Deposit money Banks in Nigeria including books, journals, and articles. Data was analyzed using Ordinary Least Square (OLS), Linear regression technique as well as E-views. Findings revealed that only client size and external auditor type had significant effect on audit report lag while other variables like auditor’s size, board size, and board meetings were not significant drivers of audit report lag. Therefore, total assets cause delay in audit reports while external auditor size help to reduce the audit report lag. This implies that the larger the total assets that client has, the more will delay in audit report lag that will be experienced by the Bank. The study therefore recommended that banks and audit firms should leverage efficient audit processes used with larger clients to optimize the audit process for smaller clients; banks should be encouraged to adopt governance practices that include frequent and well-organized board meetings by establishing governance frameworks that set minimum standards for board engagement and oversight to ensure more efficient audit processes.