The Effect of External Audit Quality on the Delay of the Auditor's Report - An Empirical Study

The auditor's objective is to provide reasonable assurance about the reliability of the information contained in the financial statements (Baldacchino, et al., 2016) .Assessment of the auditor is of value to users of financial statements if available in a timely manner. Accounting (IASB, 2008, paragraph QC22), is also a qualitative characteristic of accounting information (SFAC No.8, 2010) that enhances the value of information to users of financial statements, where information is valuable if it is able to predict events or confirm or correct expectations
(Al-Ajmi, 2008). The Knechel & Payne, 2001 study also found that timely timing is one of the most influential factors in assessing the quality of financial reporting.
The timeliness of the financial reports is affected by the period of the audit, where the annual financial reports can only be disclosed after the auditor has given an impartial technical opinion on the fairness and honesty of the financial statements. The auditors are therefore subject to considerable pressure to reduce the time period required to carry out the audit. They range from the end of the fiscal year to the date of signing the audit report, known as the auditor's delay report period.
The period of delay of the auditor's report is important to meet the needs of the users of the financial statements, as the reduced delay of the auditor's report leads to reduced information asymmetry (Yaacob & Che-Ahmad, 2012), reduced uncertainty in decision-making (Dao & Pham, 2014), increased Efficiency of information in the stock market (Lee, et al., 2009), improving stock prices in the stock market and reducing the phenomenon of rumors (Hassan, 2016).
The Knechel & Payne (2001) study also pointed out that there is an inverse relationship between the length of the audit report delay and the media value of the audited financial statements. The study (Leventis, et al., 2005) found that the audit report delay is one of the most influential factors. On the timing of the disclosure of financial reports, a study (Bamber, et al., 1993) found that more than 70% of companies do not announce their annual profits until after the issuance of the auditor's report.
 It is therefore important to consider the factors influencing the reporting delay
The reviewer (Bamber, et al., 1993) indicated that the delay of the auditor's report is one of the important factors that can be observed externally and is related to the efficiency of the audit process, as well as the delay of the auditor's report directly related to the timing Profit announcement which significantly affects stock prices in the stock market (Lee, et al., 2009).
The quality of the external audit indicates the extent to which the auditor has complied with the requirements of recognized audit standards and professional ethics issued by professional organizations to increase the likelihood of detecting material misstatement and fraud during the audit and disclosure process to increase the degree of confidence in the financial statements, and to increase the efficiency of information to meet the needs of all stakeholders. It also helps to protect the interests of all parties involved in the audit process, which are represented by audited companies, audit offices, professional organizations, existing investors and investors. As a result, many professional organizations, such as the International Federation of Accountants, the American Institute of Certified Public Accountants, and the Egyptian Institute of Accountants and Auditors, have issued audit quality control standards to overcome many of the problems associated with audit quality and reach reasonable assurance about the implementation of audits in the light of professional standards. And legal and regulatory requirements.