We acknowledge that the easy digital nature regarding IFRS could be resulting in bias regarding overall performance because pools the consequences of every adoption will set you back together with other decades (Higgins et al., 2016). Hence, we overcome so it limitation by disaggregating for each and every IFRS 12 months for the a beneficial separate dummy varying.
The outcome are demonstrated when you look at the Table six. Columns step 1 and you may 2 hold the consequence of very early adopters to your audit charge and you may auditing day, correspondingly. In both review charge and you may auditing day, the newest coefficient off IFRS-step 1, IFRS0 and you will IFRS+step one try self-confident and extreme, indicating a boost in review date comparable to a rise in audit charges inside the change to IFRS and another-season blog post-IFRS months. In contrast, the outcomes of late adopters when you look at the Columns 3 and 4 tell you the escalation in audit costs and time is high just at use 12 months. That is, review fees and auditing go out have been somewhat higher simply regarding season where in fact the business prepared the earliest IFRS statement of finance. Very early adopters may have got a major improvement in bookkeeping assistance, for instance the highest price of degree teams because of the use up all your out-of early in the day expertise in IFRS, and the observed complexities up to they. Late adopters encountered the advantageous asset of discovering off prior to adopters off the true criteria regarding IFRS as opposed to an excessive amount of investment.
The outcomes within the Desk six, ergo, give so much more facts and you may establish all of our findings that the IFRS use is of a boost in audit charge, and auditing date is far more pronounced in early adopters and you can hardly non-established inside the later adopters.
six.5 Robustness glance at
To further check the robustness of our results, we use the marginal means of review fees, and you can auditing go out instead measurement on the situated variable. The latest limited function try determined because year toward seasons change when you look at the review fees otherwise review date. When it comes to audit costs, we make use of the rising prices-adjusted data. The outcomes is actually presented in the Table seven. Columns 1 and you may 2 secure the estimate consequence of early adopters whenever you are that later adopters are demonstrated within the Columns step 3 and you may cuatro. The outcomes aren’t qualitatively distinctive from compared to a portion of the contributes to Dining table cuatro; and this, all of our conclusions that the aftereffect of IFRS adoption towards review charge and you can auditing day is actually sturdy to help you an alternative dimension off details.
seven. End
Discover abundant and you may almost unanimous conclusions you to definitely IFRS try good state-of-the-art gang of conditions one increases the price of auditing in order to a strong (Cameran and you may Peroti, 2014; De George ainsi que al., 2013; Griffin ainsi que al., 2009; Hassan et al., 2014; Higgins ainsi que al., 2016; Lin and you can Yen, 2016, towards the Asia; Rished and you can Al-Saeed, 2014; Yaacob and you will Che-Ahmad, 2012). But not, each one of these results are derived from a sample regarding very early adopters and no recommendations so you can late adopters. While the suggested from the Trick and you will Kim (2020), the action, exposure and you will bonuses lately adopters can be unlike very early adopters; and therefore, the end result may be BHM dating sites different. Hence, contained in this report, you will find make use of the unique configurations out-of IFRS use of the several more African nations to look at whether the effectation of IFRS on the review charges and you can auditing day varies anywhere between very early and you will late adopters. Africa will bring an appropriate means towards the investigation by the lowest adoption in the area and you may significant various other implementing many years anywhere between brand new places. Along with, the location has not yet lured much focus from the IFRS-auditing feeling literature. South Africa adopted IFRS during the 2005 which will be branded once the early adopters since use by the Nigeria within the 2012 is considered as later following.
The outcomes cam towards the latest conflict that dating anywhere between IFRS adoption and you will review charges, along with auditing time, disagree between very early adopters and you may later adopters. Specifically, we discover you to definitely very early adopters feel a life threatening boost in audit fees and you may big date because of IFRS adoption. However, when it comes to later adopters, even if audit charge boost, it is rarely extreme. Our performance mean that early adopters off IFRS reduced a premium for being the original users of the standards, from rise in audit fees and review time. In the after that analyses, we find that confident dating between IFRS and audit costs and auditing go out are high in the transition seasons up on one-seasons article-IFRS use. In the outcome lately adopters, the partnership is extreme just use seasons. The results is strong so you’re able to an option dimension of review fees and you can auditing big date.