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ABSTRACT
The study examines determinants of Auditor’s Choice in Nigerian Quoted Companies. It specifically examined empirically the effect of Audit Fee, Auditor’s Independence, Asset Structure and Audit Tenure in Nigeria A longitudinal research design was adopted with extensive reliance on secondary data sourced from the annual reports of 30 companies quoted on the Nigerian Stock Exchange between 2017 to 2021. Both statistical and econometric tools, including Ordinary Least Square were employed in the analysis. Findings reveal that Audit Fees (AUDFEE) was found to have a positive relationship with Auditor’s Choice (AUDCHOICE) and statistically significant when tested at 5% level of significance. Auditor independence was found to be negatively related with Auditor’s Choice (AUDCHOICE) and statistically insignificant at 5% level of significance. Inventory/receivables were found to be positively related with Auditor’s Choice (AUDCHOICE) and statistically insignificant at 5% level of significance. Finally, auditor tenure was found to be negatively related with Auditor’s Choice (AUDCHOICE) and non-statistically significance at 5% level of significant. Hence, study recommends that firms in Nigerian should ensure that their auditors are truly independent as this is likely to enhance auditor’s choice. Mergers of the asset structure of non-Big-Four audit firms should be considered in order to reduce the current gap between the Big Four and non-Big-Four audit firms. Finally, higher should be sustained since high audit fee is associated with auditors’ choice resulting to a higher audit quality and reputation of the auditors.
