Abstract
The study examined the effect of audit fees on the earnings quality of quoted industrial goods companies in Nigeria. Specifically, it evaluated the influence of audit fees on earnings predictability and earnings persistence[cite: 8]. [cite_start]Two research objectives, questions, and hypotheses guided the study[cite: 9]. [cite_start]An ex-post facto research design was adopted, utilizing secondary data extracted from the audited financial statements and annual reports of listed industrial goods companies from 2013 to 2023[cite: 9]. [cite_start]The population consisted of all thirteen industrial goods companies listed on the Nigerian Exchange Group, with ten companies purposively selected based on the availability of complete financial data[cite: 9]. [cite_start]Data analysis was conducted using descriptive statistics and Panel Ordinary Least Squares (OLS) regression techniques[cite: 10]. [cite_start]The results revealed that audit fees have a positive and significant effect on both earnings predictability and earnings persistence[cite: 11]. [cite_start]This indicates that adequate auditor engagement enhances the reliability and sustainability of reported earnings, thereby improving overall earnings quality[cite: 12]. [cite_start]It was concluded that audit fees play a critical role in strengthening corporate governance and financial reporting transparency in Nigerian industrial goods companies[cite: 13]. [cite_start]It was recommended that firms ensure audit fees are commensurate with the scope of audit work to maintain high-quality financial reporting[cite: 14].
References
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