EXAMINING THE NEXUS BETWEEN AUDIT QUALITY AND FINANCIAL PERFORMANCE OF LISTED CEMENT COMPANIES IN NIGERIA
Aliyu A. Almustapha , Umar Salim Ibrahim and Jamilu Madaki
Volume 13 Issue 2
Abstract
This study examines the nexus between audit quality and financial performance of listed cement companies in Nigeria. Specifically, it investigates the effects of audit firm type, audit tenure, auditor independence, audit fees, and audit firm age on return on assets (ROA). The study population comprises the three cement companies listed on the Nigerian Exchange Group (NGX). Secondary data were extracted from the annual reports and financial statements of the selected firms from 2013 to 2021. The analysis employed panel least squares regression using STATA version 14.0. The findings indicate that auditor independence significantly enhances financial performance, whereas audit firm type and audit firm age do not indicate a significant effect on ROA. Based on these results, the study recommends that listed cement companies continue to engage Big Four audit firms and ensure that management refrains from exerting undue influence over audit activities, thereby safeguarding auditor independence and promoting credible financial reporting. Keyword: Audit Quality, Audit Type, Audit Independence Firm Age and Profitability
Download Paper