IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 5 2023
DOI: https://doi.org/10.56201/jafm.v9.no5.2023.pg64.76

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Determinants of Audit Quality and Audit Quality: A Study of Listed Companies in Nigeria

Ojeaga, Joseph Oseikhuemhen 1 & Ezejiofor, Raymond A.

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Abstract

The study ascertained the determinants of audit quality of listed companies on the Nigerian Stock Exchange. Ex Post Facto research design was used for the study. A sample of sixty three (63) companies was used for the study from a population of one hundred and seventy companies listed on the Nigerian Exchange. The binary logit regression was applied when the dependent variable is dichotomous in nature (i.e. 1 and 0). Based on the outcome, it could be deduced that the explanatory variable of auditors’ independence poses an inverse significant impact on audit quality. The result also showed that audit tenure has a significant negative impact on audit quality. Based on the findings of this study, it was recommended among others, that management are expected to ensure strong corporate governance principles that would ensure that external auditors remain independence of insiders’ influence. This is expected to enhance the auditors’ objectivity which would lead to higher audit quality ceteris paribus.

keywords:

Auditors’ independence, Audit tenure and Audit quality

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References:

Adeniyi, S. I. & Mieseigha, G.E. (2013). Audit Tenure: an assessment of its effects on audit
quality in Nigeria. International Journal of Academic Research in Accounting, Finance
and Management Sciences, 3(3), 275–283.

Adeyemi, S. B.. Okpala, O. & Dabor E.L. (2012). Factors affecting audit quality in Nigeria
International Journal of Business and Social Science 3(20), 198-209.

Akhidime, A. (2015). Board structure, corporate characteristics and audit quality of Nigeria
banks. International Journal of Economics, Commerce and Management, 3(6), 832 –
846.

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