In respect of the International Financial Reporting Standards (IFRS) convergence, auditing works have become too complicated in the way auditors are burdened with so many changes of standards. The complexity of IFRS adoption is mainly attributable to certain standards that have received considerable criticism from the preparers and the auditors due to their ambiguous measurement and recognition. As FRS 138 is a new IFRS in Malaysia, and the accounting treatment for intangible assets are the most controversial and complex issue in the financial reporting field (Lhaopadchan, 2010), there is a question of whether FRS 138 adoption in Malaysia would affect audit efficiency. Hence, this study aims to examine the relationship between the adoption of FRS 138 on the timely issuance of audit report. The final sample consists of 2,440 firm-year observations. The panel regression analysis reveals a significant positive relationship between FRS 138 adoption and audit delay. The result proves that FRS 138 is a complex standard that takes the auditor more time to audit.