2024, Vol. 5, Issue 1, Part F
Audit quality and the financial performance of multinational companies in Nigeria
Author(s): Esegbuyota Frank Igben and Edirin Jeroh
Abstract: This research focused on assessing how audit quality influence the financial performance of multinational companies in Nigeria. The study used secondary data which were obtained from the financial accounts of 10 listed multinational companies in Nigeria. Two performance indices (Return on Assets - ROA and Return on Equity - ROE) were considered in this study while audit quality was measured with 4 variables (Audit Report Timeliness - ART, Joint Audit - JAU, Audit Tenure - ATE and Audit Fees - AUF). Two hypotheses were advanced and tested with the robust regression technique. Findings indicate that the financial performance of firms as measured by ROA and ROE is not significantly influenced by audit fees and tenure respectively. Contrary to this, it was further observed that audit report timeliness and joint audit exert significant influence on the trend of ROA and ROE of multinational companies operating in Nigeria over time. In view of this outcome, we recommend amongst others that multinational companies should be deliberate in achieving progressive reduction in audit time lag for future years. This can be achieved by making the tasks of external auditors easier through improvement in the systems of internal controls and maintaining high compliance levels with established standards and relevant reporting frameworks.
Pages: 440-446 | Views: 127 | Downloads: 95
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How to cite this article:
Esegbuyota Frank Igben, Edirin Jeroh. Audit quality and the financial performance of multinational companies in Nigeria. Asian J Manage Commerce 2024;5(1):440-446.
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