الفهرس 
General Framework of the StudyOnly 14 pages are availabe for public view
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Abstract
Egypt has witnessed in the last decade remarkable changes in regulations and policy settings controlling the auditing profession. Most noticeable, during March 2018, the Egyptian regulations reduced the audit report lag allowed for auditors to be only two months. If the auditing process will ever be affected with time pressure, the most vulnerable audit area is expected to be the completion phase and specifically subsequent events review. Subsequent events review has received less attention in the literature despite its importance and risks. The main objective of the study is to interpret the relationship between the length of audit report lag and effectiveness of subsequent events review.
A review of the literature revealed that the research concerning the consequences of shorter audit report lag yielded contradicting results, literature concerning determinants of audit report lag needs further explanation, and literature and standards regarding subsequent events review can be described as limited and concluded that subsequent events review is a problematic area of the audit that requires further research.
The current study examines the two directions of the relationship; it investigates the effect of shorter audit report lag on the three phases of subsequent events review; (1) searching for subsequent events, (2) evaluation of subsequent events materiality, and (3) auditor’s final decision. The study also assesses the impact of subsequent events review on audit report lag. Size of the audit firm, auditor’s qualifications and experience are assumed to affect the relationships between variables.
A sample of 58 practicing Egyptian auditors went through a between-subjects experiment that was designed to collect data necessary to test the hypotheses. A multiple linear regression analysis and Spearman’s rank correlation test was used to investigate the possible relationships between variables.
Analysis of data indicates that; First, shorter audit report lag significantly affects auditor’s search for subsequent events through affecting their detection rate of error, and that size of the audit firm materially enhance auditor’s searching process. Second, audit report lag also affects auditor’s evaluation of subsequent events materiality, auditors who were informed that the deadline is approaching evaluated the items as less material than those who were not subject to time pressure. Third, time pressured auditors took weaker final decisions and positions than auditors where time pressure was absent. Size of audit firm, auditor’s qualification, and experience were not found significant in the relationship between audit report lag and both materiality evaluation and final decisions of subsequent events.
Opposite to the researcher’s hypothesis, auditors who were told they discovered a subsequent event late in the audit were less likely to extend the audit report lag, where, auditors who discovered it early in the audit were more willing to extend the audit, given that auditor’s experience strengthen auditor’s intention to end the audit and not extending the audit report lag if events were discovered late.
The study contributes to knowledge through investigating and interpreting the relationships between audit report lag and subsequent events review, a relationship which has not been explored in the contemporary auditing literature, moreover, the study proposes solutions to improve current subsequent events review procedures.