Corporate Governance Quality and Timeliness of Financial Reporting: The Moderating Role of Internal Auditing Quality

The timeliness of financial reporting can enhance the trust of investors and shareholders in financial information while preventing potential legal and financial issues. Among the critical factors, internal auditing is a vital component of the oversight process, ensuring the accuracy and reliability of financial information. This study examines the impact of corporate governance quality on the timeliness of financial reporting and the moderating role of internal audit quality in this relationship. The research employs a quantitative approach based on a correlational research design. Data from 109 companies listed on the Tehran Stock Exchange from 2016 to 2023 were analyzed using logistic regression to test the hypotheses. The results indicate that corporate governance quality has a positive and significant effect on the timeliness of financial reporting. However, internal audit quality is not a moderating factor in this relationship. Accordingly, corporate governance quality plays a crucial role in ensuring the timeliness of financial reporting and enhances investors' trust in financial information.Nevertheless, internal auditing, on its own, cannot address structural or managerial deficiencies that may lead to reporting delays. This study elucidates the role of corporate governance quality and internal auditing in improving the quality of financial reporting. It highlights the importance of effective governance and internal oversight management.