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Determinants of Audit Quality: Evidence from Deposit Money Banks Listed on Nigeria Stock Exchange

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  • Amahalu Nestor Ndubuisi
  • Beatrice O. Ezechukwu

Abstract

The objective of this study is to ascertain the determinants of audit quality with a focus on selected Deposit Money Banks listed on the floor of Nigeria Stock Exchange from 2010-2015. This study made use of secondary data obtained from fact books, annual reports and account of selected banks under study. The relevant data were subjected to statistical analysis using Pearson coefficient of correlation, Ordinary Least Square (OLS) and Granger causality test with the aid of E-view 9.0. The result of this study revealed that there is a positive and statistically significant relationship between audit fees, audit tenure, audit firm size and audit quality. It was also empirically verified that audit fees, audit tenure, audit firm size have a statistically significant relationship with audit quality of banks listed on the floor of Nigerian Stock Exchange at 5% level of significance. The study recommends among others that auditor-client relationship should not exceed 3 years, because the auditor may develop close relationship with the client and become more likely to act in favour of management, resulting in reduced objectivity and audit quality.

Suggested Citation

  • Amahalu Nestor Ndubuisi & Beatrice O. Ezechukwu, 2017. "Determinants of Audit Quality: Evidence from Deposit Money Banks Listed on Nigeria Stock Exchange," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(2), pages 117-130, April.
    • Handle: RePEc:hur:ijaraf:v:7:y:2017:i:2:p:117-130
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    Cited by:

    1. Amahalu Nestor Ndubuisi & Moses Nnoruga Okeke & Obi Juliet Chinyere, 2017. "Audit Quality Determinants: Evidence from Quoted Health Care Firms in Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(4), pages 216-231, October.
    2. Onodi, Benjamin Ezugwu & Utuk, Edidem Okon, 2023. "External Audit Characteristics and Value Relevance of Listed Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(3), pages 965-979, March.
    3. Otuya Sunday & Ofeimun Godwin, 2017. "Effects of Board Globalizing on Financial Performance of Banks in Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(4), pages 1-10, October.
    4. Otuya, Sunday, 2019. "Auditors' Independence And Quality Of Financial Reporting In Listed Nigerian Manufacturing Companies," International Journal of Contemporary Accounting Issues-IJCAI (formerly International Journal of Accounting & Finance IJAF), The Institute of Chartered Accountants of Nigeria (ICAN), vol. 8(1), pages 111-128, June.
    5. Moses Nnoruga Okeke & Chikwelu M. Mbonu & Amahalu Nestor Ndubuisi, 2018. "Tax Revenue and Economic Development in Nigeria: A Disaggregated Analysis," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(2), pages 178-199, April.
    6. Joseph U. Madugba & Kerry E. Howell & Tony Ikechukwu Nwanji & Sainey Faye & Ben-Caleb Egbide & Damilola Felix Eluyela, 2021. "Audit Committee Quality and Financial Reporting in Deposit Money Banks in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(2), pages 104-117, February.

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