Audit Firm Attributesand Financial Reporting Quality of Quoted Manufacturing Firmsin Nigeria

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 1

Year of Publication : 2020

Authors : Emmanuel Emeakponuzo Daferighe , Emem Monday George

10.14445/23939125/IJEMS-V7I1P107

How to Cite?

Emmanuel Emeakponuzo Daferighe , Emem Monday George, "Audit Firm Attributesand Financial Reporting Quality of Quoted Manufacturing Firmsin Nigeria," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 1, pp. 41-52, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I1P107

Abstract:

The need to ensure accurate and reliable financial reports has been a topical issue due to the continuous corporate scandals witnessed in developed and developing countries. Despite regulators' and stakeholders' concernsabout ensuring financial reporting quality, corporate financial scandals are still on the rise in Nigeria and other countries of the world. This study examined the impact of audit firm attributes on the financial reporting quality of quoted manufacturing firms in Nigeria from 2011 to 2015. The ex-post facto research design was adopted in the study. Data were obtained from the published annual reports and accounts, notes to the financial statements of the sixteen firms that represent the sample of the study. Multiple regression analysis was employed in analyzing the data and testing the stated hypotheses. The findings showed that auditor fees havea significant influence on the financial reporting quality of quoted manufacturing firms in Nigeria. However, it was discovered that audit firm size and audit delayhavean insignificant impact on the financial reporting quality of manufacturing firms in Nigeria. Therefore, it was recommended that the manufacturing firms create an enabling environment that will ensure the conduct of proper audits by the auditors and for a timely release of their reports to users, thus promoting quality decision making.

Keywords:

Audit attributes, Financial reporting quality, Manufacturing firms, Audit fees, Audit firm size, Audit delay

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