EARNINGS MANAGEMENT AND AUDIT QUALITY OF LISTED COMPANIES IN NIGERIA

ABSTRACT

This study examine the effect between earnings management and audit quality of listed companies in Nigeria. The study was achieved by examining the effect of audit firm size, joint audit service, audit fee, auditor’s experience and audit tenure on earnings management of listed companies in Nigeria. The study examined the effect of audit quality on the earning management of listed companies in Nigeria. The data used was obtained from the annual reports of the 13 listed industrial firms considered and covered a time frame of 2017 to 2022 period on an annual basis. Following a detailed analysis, the study conclusively revealed that audit firm size and audit fee have no significant influence on earnings management. While joint audit service, auditor experience and audit tenure have a significant influence on earning management of listed industrial firms in Nigeria. The study therefore concluded that audit quality have a statistically significant influence on the earning management of listed companies in Nigeria since the F statistics value of 3.372994 is greater than the bench mark of 2. In line with these findings, the study recommends Management of firms should ensure that the size of audit firms is considered when appointing independent auditor, to ensure that audit firms with the right size are engaged.