Accounting Regulatory Reforms and Audit Quality of Public Sector in Nigeria

The public sector in Nigeria has witnessed several accounting regulatory reforms aimed at enhancing financial accountability and transparency. This paper examines the impact of accounting regulatory reforms on audit quality in Nigeria’s public sector. It explores the theoretical underpinnings of regulatory changes, assesses their effectiveness in improving audit outcomes, and identifies challenges that hinder the realization of high audit quality. The study employs a qualitative research approach, relying on secondary data sources, including policy documents, audit reports, and scholarly articles. Findings indicate that while regulatory reforms such as the adoption of the International Public Sector Accounting Standards (IPSAS), change of accounting basis from cash to accrual basis, and the establishment of audit oversight bodies have improved audit quality, challenges such as political interference, inadequate funding, and poor implementation persist. The paper concludes by recommending strengthened enforcement mechanisms, capacity-building initiatives, and technological integration to enhance audit quality in Nigeria’s public sector.