Audit quality attributes and financial reporting quality (a case study of some selected listed commercial banks in Nigeria)

This study assesses the impact of audit quality attributes on financial reporting quality in Nigeria. The investigation is based on the relationship between the Audit Attributes and Financial Reporting Quality of some selected listed commercial banks in Nigeria. The audit quality attributes proxy used are; Audit committee report, audit firm size, auditors’ remuneration and auditor’s report, which can be regarded as the independent variables, while the dependent variable is the financial reporting quality. Three hypotheses were tested in this study. The empirical study was performed using a sample of 10 banks and 4-year observations from the period of 2015-2018. The study is descriptive in nature and the correlational and ex-post facto designs were adopted in carrying out this research. One of the reasons why audit quality attributes is germane in the determination of financial reporting quality is that it will influence the investment decision making of an existing investor, potential investors and all the stakeholders interested in the financial report. The findings would be of interest to potential investors, auditors (internal and external) and management in the process of financial reporting enhancement. Finally, the study offered recommendations to enhance the financial reporting status through good audit attributes.