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| Abstract : Perpustakaan Tuanku Bainun |
| This study investigated the effect of audit quality on financial reporting quality in
Nigeria. The audit quality was proxied with audit firm size, audit fee, audit tenure and
audit committee financial expertise on financial reporting quality in Nigeria. This study
adopted a stratified sampling technique to select 50 non-financial firms, which cut
across 10 sectors from 2015 to 2022. The dependent variable (FRQ) was measured
using accruals quality, while the explanatory variables were measured using; audit firm
size, audit fee, audit tenure and audit committee financial expertise. The panel data
set were analyzed using pooled, fixed and random effects estimator, while Hausman
test and L.M test were used to select the best estimates. The results of this study
revealed that audit firm size has a non-significant negative effect on financial reporting
quality. The findings of this study also indicated that audit fee has a significant negative
effect on financial reporting while audit firm tenure has a non-significant positive effect
on financial reporting quality. Audit committee financial expertise also has a significant
negative effect on financial reporting quality. The study also revealed that audit quality
has a significant negative effect on financial reporting quality. Based on the findings of
this study, the study recommended that elements of audit quality should be improved
upon as this might improve the quality of financial reporting. Additionally, audit firms
should give more attention to accruals quality as this constitutes the major element
that signifies the quality of financial reports.
Keyword: Audit quality, Accruals, Audit fees, Financial Reporting Quality (FRQ) |
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