IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 8 NO. 6 2023
DOI: https://doi.org/10.56201/ijefm.v8.no6.2023.pg1.15

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Audit Fee Differential and Financial Reporting

Dr. Tonye Ogiriki, Tantua Bralayefa

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Abstract

This study has examined audit fee differential and financial reporting. Adopted the ex-post-facto research design in order to get preferences as it regards to relationship between audit fee differential and statement on Statement of Financial Position (SFP), the Statement of Financial Performance (SAP), and the Cash Flow Statement (CFS) of of quoted firms in Nigeria between 2012-2022 using Ordinary Least Square (OLS) estimate. Multiple analyses will be performed on the series of data representing the model variable. To begin, we conducted a test for stationary to eliminate the potential for false parameters arising from the regression of two or more non- stationary data series. From the analysis, the study found out that there exist significant relationship between audit fee differential on statement of financial position, statement of financial performance and cash flow statement of quoted firms in Nigeria between 2012-2022. From the finding, the study recommends that there should be transparency in financial reporting, firms should provide detailed explanations and justifications for the audit fee differentials, and also there should be regular audits and independent evaluations of the financial statements can help identify any potential manipulations or misrepresentations

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References:

Agrawal, A., & Chadha, S. (2005). Corporate governance and accounting scandals. Journal of Law
and Economics, 48(2), 371-406.
Arogundade, B.B. (2017). The impact of financial performance on audit fees: evidence from
quoted companies in Nigeria. International Journal of Economics, Commerce, and
Management, 5(9), 277-289.
Backer, W., & Philip, J. (2016). Financial reporting: An introduction to concepts, methods, and
uses. Cengage Learning.

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