THE DETERMINANTS OF AUDIT QUALITY OF LISTED SERVICE FIRMS IN NIGERIA
Abstract
ABSTRACT
This study examines the determinants of audit quality among listed service firms in Nigeria, focusing on the effects of audit firm size, audit tenure, and audit fee. Using panel data from 40 firm-year observations across 8 service firms listed on the Nigerian Exchange Group between 2019 and 2023, the study employs descriptive statistics, correlation analysis, and logistic regression to evaluate these relationships. The findings reveal that audit firm size, tenure, and fee do not have statistically significant effects on audit quality. However, auditor independence and firm profitability (measured by return on assets) emerged as significant predictors. These results suggest that ethical and financial factors are more critical in shaping audit outcomes than structural characteristics. The study concludes that strengthening auditor independence and improving firm financial health are essential for enhancing audit quality in Nigeria's service sector. It recommends that regulatory bodies enforce governance standards while firms adopt practices that promote transparency and accountability.
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