AUDIT QUALITY AND FINANCIAL REPORTING QUALITY EVIDENCE FROM NIGERIAN LISTED DEPOSIT MONEY BANKS
Abstract
This study investigates the impact of audit quality dimensions on the financial reporting quality (FRQ) of the 14 deposit money banks listed on the Nigerian Exchange Group (NGX) from 2018 to 2024. Motivated by the persistent failure of banks despite "clean" audit opinions—most recently evidenced by the 2024 collapse of Heritage Bank—this research examines whether audit fees, tenure, and firm size influence reporting integrity. Using a Pooled OLS regression on 98 bank-year observations, the results reveal that audit fees exhibit a statistically significant positive relationship with FRQ (β = 0.0190, p < 0.001), confirming that resource commitment is the primary driver of audit effectiveness. Conversely, audit firm size and auditor tenure were found to be statistically insignificant. This study argues that in the Nigerian banking sector, "Big Four" affiliation (95% of observations) and mandatory rotation have become structural market baselines rather than differentiators of quality. The findings suggest that regulators should move beyond "brand-name" oversight and focus on the adequacy of audit pricing to ensure rigorous financial monitoring.
This article is available as a PDF download
Published in UNIPORT JOURNAL OF BUSINESS, ACCOUNTING & FINANCE MANAGEMENT
ISSN: 1596-9911
This article appears in our peer-reviewed academic journal
View JournalRelated Articles
Explore similar research in our collection
WORKPLACE DIGITALIZATION AND ENTREPRENEURIAL SUCCESS OF FOOD AND BEVERAGES FIRM IN RIVERS STATE.
AKI, WINNER WRITTEN, B. CHIMA ONUOHA
Apr 20, 2026
The study investigates the relationship between workplace digitalisation and entrepreneurial success...
View ArticleFLEXIBLE WORK ARRANGEMENT AND EMPLOYEE JOB SATISFACTION: EVIDENCE FROM SELECTED ENTREPRENEURIAL FIRMS IN LAGOS STATE, NIGERIA
OLADEJO, DAUDA ADEWOLE, OBADARE, GRACE. OLUWATOYIN
Mar 27, 2026
This study examined the effect of flexible work arrangements (FWAs) on employee job satisfaction amo...
View ArticleTHE IMPACT OF IRREGULAR ELECTRICITY SUPPLY ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN MAKURDI METROPOLIS: THE IMPLICATIONS OF ALTERNATIVE ENERGY SOURCE
SA’AONDO, SIMON AONDONA
Feb 25, 2026
This study investigates the impact of irregular electricity power supply on the performance of Small...
View Article