The Effect Of Audit Quality On Financial Reporting Quality Of Deposit Money Banks In Nigeria
ABSTACT
The objective of this study was to examine the effect of audit quality on financial reporting quality of deposit money banks listed on the Nigerian stock exchange. Data were extracted from audited annual reports of the eight deposit money banks with international authorization listed on the Nigerian Exchange Group for ten years, 2014-2023. These eight banks served as the population size and sample sie of this study. The study used panel multiple regression and employed Hausman’s test to choose between Random and fixed effect model. Random effect model was chosen and interpreted. It was found out that audit firm size, audit tenure, and audit fees affect Financial reporting quality(FRQ), but only the effect of audit fees was statistically significant. On the basis of the findings of this study, it was recommended that, among others, banks should make use of the services of audit firms with unquestionable track records as it concerns audit quality and audit reputation, one whose character and integrity is beyond question.