||Does IT-Specific Industry Expertise Improve Report
||Department of Accountancy
This paper investigates whether the IT-specific expertise of external audit firm influences clients’ level of reporting timeliness. The results suggest that clients have better reporting timeliness when their external audit firms have IT-specific expertise. Further, this paper examines whether the overall expertise (i.e., the combined IT and audit expertise) of external audit firm influences the timeliness of audit report. The finding indicates that the external audit firm’s overall expertise is generally associated with better reporting timeliness. In sum, my results suggest that the IT-specific expertise of an external audit firm play an important role in reducing reporting lag.
I. INTRODUCTION 1
II. PRIOR LITERATURE AND HYPOTHESIS DEVELOPMENT 3
III. METHODOLOGY 5
3.1 Measure of IT-Specific Expertise 5
3.2 Model Specification 7
IV. SAMPLE SELECTION AND DESCRIPTIVE STATISTICS 11
V. MULTIVARIATE ANALYSES 16
5.1 Test of H1 and H2 16
VI. CONCLUSIONS 20
APPENDIX A 24
CONTENTS OF TABLES
TABLE 1 Sample Selection 11
TABLE 2 Descriptive Statistics 13
TABLE 3 Pearson Correlation Matrix 14
TABLE 4 Test of H1 18
TABLE 5 Test of H2 19
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