Audit firm tenure and quality of financial report in Nigeria
Confidence Ihenyen and Pascale Egileonisiya Augustine-Desi
The purpose of this research was to determine if there was a connection between the length of engagements with audit firms in Nigeria and the reliability of financial reports in that nation. In this study, a panel dataset was collected from 40 quoted manufacturing firms trading on the Nigerian Stock Exchange (NSE) in 2022 using a post hoc research technique. Twelve publicly listed manufacturing businesses covering the five-year period 2018–2022 are selected using a judgemental selection procedure. The data is analysed using secondary sources and a panel data multiple regression model.
The Modified Jones Model from 1995 is used to calculate discretionary accruals, which are used to gauge the reliability of financial reporting. According to the findings, the length of time an audit firm has worked with a company has no bearing on the reliability of its financial statements. This is especially true for publicly listed companies in Nigeria. Thus, rather of focusing on individual auditors, regulators should regulate "audit firms" to promote earnings quality.
Confidence Ihenyen, Pascale Egileonisiya Augustine-Desi. Audit firm tenure and quality of financial report in Nigeria. Int J Finance Manage Econ 2023;6(1):252-258. DOI: 10.33545/26179210.2023.v6.i1.206