EFFECT OF AUDIT FIRM ATTRIBUTES ON AUDIT QUALITY OF QOUTED INSURANCE COMPANIES IN NIGERIA
M.M Naburgi, PhD, M.A .Mohammed, PhD and Adebiyi, Shola Tajudeen
Volume 11 Issue 1
Abstract
Audit quality is a fundamental pillar of financial reporting and corporate governance, essential for maintaining investor confidence and ensuring efficient capital markets. This study investigates the effect of audit firm attributes (audit tenure, audit fees and auditor industry specialization) and audit quality of listed insurance companies in Nigeria. Using a longitudinal research design and secondary data extracted from annual reports and accounts of sixteen insurance companies over a ten-year period (2014-2023), logistic regression and longitudinal balanced panel models were employed for analysis. The findings reveal a significant negative effect of audit tenure on audit quality. The analysis further revealed a significant positive effect of audit fees on audit quality. While auditor industry specialization positive insignificant effect on audit quality of listed insurance companies in Nigeria. Based on the findings, the study recommends among others that the companies should ensure that audit fees are sufficient to cover the resources and expertise required for a thorough audit. Higher audit fees can incentivize auditors to invest more effort and time into the audit process, leading to improved audit quality. Keywords: Audit Firm Attributes, Audit Quality, Audit Tenure, Audit Fees, Auditor Industry Specialisation
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