Audit Quality as a Determinant of Earnings Performance in Selected Nigerian Oil and Gas Companies

Earnings volatility remains a critical challenge for oil and gas companies, largely due to fluctuations in global oil prices, geopolitical uncertainties, and rising exploration and production costs. As the global energy landscape shifts toward renewables and regulatory pressures to reduce carbon emissions intensify, the demand for accurate and transparent financial reporting has become more pronounced. Despite the importance of financial reporting in this sector, there is a notable gap in the literature regarding the empirical relationship between audit quality and corporate earnings, particularly within emerging markets. This study investigates the effect of audit quality on the earnings performance of selected oil and gas firms listed on the Nigerian Stock Exchange. Employing a descriptive research design, the study targeted directors and senior management staff of actively trading firms, selected purposively as key stakeholders involved in financial decision-making. The findings reveal a statistically significant and positive relationship between audit quality and earnings, with the audit process identified as the most influential component. The study concludes that enhancing audit quality particularly audit procedures can contribute substantially to earnings reliability. It recommends that firms place greater emphasis on rigorous audit practices to improve financial transparency and stakeholder confidence in the oil and gas industry.