AUDIT CLIENT ATTRIBUTES AND CORPORATE EFFICIENCY

ABSTRACT

This study aims to investigate the relationship between audit client attributes (firm size, profitability, complexity, and leverage) and corporate efficiency, with a focus on examining how these attributes influence the effectiveness of auditing processes and ultimately, firm performance. By analyzing these variables, this research seeks to provide insights for auditors, regulators, and stakeholders on the key factors that impact audit quality and corporate efficiency, and to inform strategies for improving audit effectiveness and firm performance." The study regressed the dependent variable – corporate efficiency and the independent variables – firm size, profitability, leverage, complexity and board size as the control variable. A sample of 14banks was used in this study. The study employed Ordinary least square method. The result revealed that there is negative significant relationship between firm size, leverage and corporate efficiency while there is positive significant relationship between profitability and corporate efficiency and a positive but insignificant relationship between complexity and corporate efficiency. The study recommends amongst others that efforts should be made to minimize and streamline procedures within institutions to increase efficiency.