2024, Vol. 5, Issue 1, Part F
Audit firm attributes and the nature of financial reporting quality of consumer goods firms in Nigeria
Author(s): Michael Rerhime Atokpe and Edirin Jeroh
Abstract: This research primarily examined the perceived influence of audit firm attributes on the nature of the quality of financial reporting among consumer goods companies in Nigeria by obtaining empirical evidence from a ten-year period (2013 to 2022). Relevant data were sourced from sampled firms’ published annual reports and the attributes of audit firms examined were audit firm size, audit tenure, audit fees, and joint audit; whereas, the nature of financial reporting quality was measured with reference to the length of audit report lag so that where audit report lag is above 180 days, the quality of financial report is deemed to be low and the reverse is the case where audit report lag is below 180 days. Relevant descriptive statistical tools were applied to examine the nature of the data while the panel logistic regression analysis was the basis of the test of hypothesis. Overall, the analytical outcome indicated that apart from joint audit, most audit firm attributes are not significant determinants of the nature of the quality of financial reports of listed consumer goods firms in Nigeria. We therefore recommend that auditee firms should institute stringent but well-regulated engagement policies for auditors that will regulate the pricing, tenure and the nature/type of auditors that would be engaged from time to time. Also, since the amount of audit fees does not guarantee high reporting quality, auditee firms should be discouraged from paying very high fees for audit service.
Pages: 454-461 | Views: 106 | Downloads: 60
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How to cite this article:
Michael Rerhime Atokpe, Edirin Jeroh. Audit firm attributes and the nature of financial reporting quality of consumer goods firms in Nigeria. Asian J Manage Commerce 2024;5(1):454-461.
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