This study sought to examine the influence of IFRS adoption on audit fees. The study also
examined the impact of IFRS adoption on the timeliness of audit reports. The study further
sought to identify aspects of the IFRSs that pose compliance challenges.
The study employed panel regression analysis to address the influence of IFRS adoption on
audit fees as well as on audit report timeliness. The data used was drawn from the audited
annual reports of thirty-six (36) firms observed over the period 2005 to 2011 making 252
firm-year observations. The regression results were generated from the Stata software
programme. The study employed interview and content analysis of audit reports to identify
specific aspect(s) of IFRS that pose compliance challenges to firms.
The study finds that the adoption of IFRS significantly and positively impact audit fees. On
audit report timeliness, the study found significant positive association between IFRS
adoption and audit report lag. The panel regression results show that adopting IFRS
significantly increases audit fees and lengthens the number of days it takes auditors to sign
off audit reports. Per the audit reports reviewed, the study identified IAS 19 Employee
Benefits as the key standard not strictly adhered to. The interview responses revealed that
standards requiring Fair Value basis of measurement and those relating to Financial
Instruments, Employee Benefits, Share-based Payments and Income Tax tend to pose greater
compliance challenges. The study further observed that corporate managers, without strict
enforcement measures, are susceptible to deliberately not comply with certain standards if the
perceived repercussion on financial performance is detrimental. By implication, the study shows that major changes in accounting standards can increase
agency costs and therefore the cost of financial reporting, and as well dampen information
quality by delaying reporting timeliness.
CDR, C (2021). THE EFFECTS OF THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ON FINANCIAL STATEMENTS AUDIT IN GHANA. Afribary.com: Retrieved April 11, 2021, from https://afribary.com/works/the-effects-of-the-international-financial-reporting-standards-ifrs-on-financial-statements-audit-in-ghana
Coalition, CDR. "THE EFFECTS OF THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ON FINANCIAL STATEMENTS AUDIT IN GHANA" Afribary.com. Afribary.com, 02 Apr. 2021, https://afribary.com/works/the-effects-of-the-international-financial-reporting-standards-ifrs-on-financial-statements-audit-in-ghana . Accessed 11 Apr. 2021.
Coalition, CDR. "THE EFFECTS OF THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ON FINANCIAL STATEMENTS AUDIT IN GHANA". Afribary.com, Afribary.com, 02 Apr. 2021. Web. 11 Apr. 2021. < https://afribary.com/works/the-effects-of-the-international-financial-reporting-standards-ifrs-on-financial-statements-audit-in-ghana >.
Coalition, CDR. "THE EFFECTS OF THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ON FINANCIAL STATEMENTS AUDIT IN GHANA" Afribary.com (2021). Accessed April 11, 2021. https://afribary.com/works/the-effects-of-the-international-financial-reporting-standards-ifrs-on-financial-statements-audit-in-ghana