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Audit Quality Practices and Financial Reporting in Nigeria

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  • Loveday A. Nwanyanwu

Abstract

This paper examined the influence of audit quality practices on financial reporting in Nigeria, drawing evidence from auditing firms. Data were collected through questionnaire. Univariate, bivariate and multivariate analyses were performed using descriptive statistic, Pearson Product Moment Coefficient of Correlation and stepwise multiple regression. Findings indicate a statistically significantly positively strong relationship between the measures of audit quality (auditor independence, technical training and proficiency and engagement performance) and financial reporting (measured in terms of reliability of financial report). Auditor independence has the highest explanatory power of variations in reliability of financial report of 47.9%. In addition, the regression model with only auditor independence produces the highest value of reliability of financial report. Given the existence of technical training and proficiency and engagement performance, auditor independence is a prime audit quality in financial reporting. Accounting practitioners should imbibe the ethics of independence to achieve credibility and reliability required of financial reports.

Suggested Citation

  • Loveday A. Nwanyanwu, 2017. "Audit Quality Practices and Financial Reporting 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(2), pages 145-155, April.
    • Handle: RePEc:hur:ijaraf:v:7:y:2017:i:2:p:145-155
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    References listed on IDEAS

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    Cited by:

    1. Efeeloo Nangih, 2017. "Safety Practices and Performance of Oil and Gas Servicing Companies in Nigeria: Empirical Evidences from Selected Companies in Portharcourt," 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 177-181, October.
    2. Prastika Suwandi Tjeng & Rina Nopianti, 2021. "The Effect of Auditor's Technical Abilities on the Quality of Financial Statement Information," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(6), pages 129-129, June.
    3. 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.
    4. Professor Owolabi, S.A. & Afolayan, Oluwatobi, 2020. "Auditor’s Independence (AUDINDP) and the Quality of Financial Reporting (FRQ) in Listed Deposit Money Banks (DMB’s) in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(8), pages 303-309, August.

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