AUDIT QUALITY AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS SECTOR IN NIGERIA
Abstract
The main objective of this study examines the effect of audit quality on financial performance of listed
consumer goods sector in Nigeria. Specifically, the study assesses the effect of audit fee, audit size and
auditor committee on financial performance of listed consumer goods sector in Nigeria. The theoretical
framework for the study is the agency theory. The research design was ex-post facto research design.
The research work used secondary data collected from financial statements of the listed consumer goods
firms in Nigeria. The analysis was done using descriptive statistics, correlation analysis, fixed and random
effect test and regression analysis for the test of hypotheses. The result of the study indicate that audit
fee and audit size has significant effect on financial performance of listed consumer goods sector in
Nigeria while and auditor committee has no significant effect on financial performance of listed
consumer goods sector in Nigeria. The study therefore concludes that audit quality has positive and
significant effect on financial performance of listed consumer goods sector in Nigeria. Amongst the
recommendations is that consumer goods firms should determine the optimum audit fee that will not
affect performance. Consumer goods firms should improve the audit size below the mean value and
consumer goods firms should not be in a hurry to assign more than one responsibility to each of the
auditor committee since it has significant effect on return on asset.
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Published in BUSINESS AND FINANCE JOURNAL
ISSN: 988-47878
This article appears in our peer-reviewed academic journal
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