ABSTRACT

This study investigates the relationship between audit quality and financial reporting quality among listed firms in Nigeria. Specifically, it examines how auditor’s fees, audit committee size, auditor’s firm size, and auditor’s tenure impact financial reporting quality. Utilizing secondary data from the annual reports of 30 companies listed on the Nigerian Exchange Group (NGX) over a five-year period (2018-2022), the research employs an ex-post facto research design and purposive sampling technique. The results from panel regression analysis reveal that auditor’s fees, audit committee size, and auditor’s firm size have an insignificant negative relationship with financial reporting quality, while auditor’s tenure shows an insignificant positive relationship.

These findings suggest that factors such as the competitiveness of the audit market, regulatory environment, and corporate governance practices may influence these relationships. The study recommends that firms review fee structures, ensure effective audit committee composition, prioritize audit quality over firm size, and consider the benefits and potential independence concerns associated with longer auditor tenure. This research contributes to the understanding of audit quality dynamics and provides practical insights for improving financial reporting quality in Nigeria.