THE IMPACT OF AUDITING STANDARDS ON FINIANCIAL PERFORMANCE OF LISTED MANUFACTURING COMPANIES IN NIGERIA

ABSTRACT This report presents the outcome of a research that examines auditing standards on the financial performance. Specifically, the study drew inference from quoted manufacturing companies in Nigeria, with data covering 5 years (2018 to 2022). The proxy for audit quality were statutory audit services, audit tenure, auditor’s independence, and audit-firm size; whereas, firm performance was measured by Return On Assets (ROA) and Return on Equity (ROE). Firm year data which were collated from their respective annual reports were obtained from the database. The study adopted the Multiple Regression technique, descriptive analysis and the tools used in analyzing the data collated The multiple regression analysis revealed that statutory audit service had a significant positive impact on return on assets but an insignificant impact on return on equity. Audit tenure showed an insignificant negative impact on both return on assets and return on equity. Auditor independence had a significant negative impact on return on assets but an insignificant impact on return on equity. Audit firm size had an insignificant negative impact on both return on assets and return on equity. The study recommend that Manufacturing companies should invest in robust internal control systems and adopt best practices in auditing procedures to optimize their financial performance.