EFFECT OF AUDIT QUALITY ON THE FINANCIAL REPORTING QUALITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
AROYEWUN, Hannah Kashi and GWAMNA, Yusuf Junior
Volume 2 Issue 2
Abstract
This study examines the effect of Audit Quality on the Financial Reporting Quality of Listed Deposit Money Banks in Nigeria for the period of ten years from 2011-2020. The study adopted correlation research design, and a census sample of 14 out of a population of 14 deposit money banks listed on the floor of Nigerian Stock Exchange as at 31st December, 2020 respectively. Secondary data of the sampled firms was extracted from the annual audited financial reports of the sampled banks. The data were analysed based on the multiple regression. The result reveals that, audit firm tenure and audit firm fee have a negative and insignificant impact on financial reporting quality. While audit firm type has a positive and significant effect on financial reporting quality of listed deposit money banks in Nigeria. The study concludes that audit quality is significantly influencing the financial reporting quality of listed deposit money banks in Nigeria. Based on the findings, the study recommends that, listed deposit money banks in Nigeria should reduce the period of rotation of audit firm; banks should stop paying unnecessary high fees to audit firms with the believe that they will receive high quality financial report. Keywords: Audit Quality, Financial Reporting Quality, Audit Tenure, Audit Fee
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