AUDIT QUALITY AND ITS EFFECT ON EARNINGS MANAGEMENT OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Authors

  • Luka Giwa Taraba State University, Jalingo
  • Stephen Adi Pajo Taraba State University, Jalingo
  • Daniel Zachariah Abel Taraba State University, Jalingo

Keywords:

Audit Quality, Audit Fee, Audit Firm Size, Earnings Management, Discretionary Accruals

Abstract

The main objective of this study is to examine how audit quality is related to earnings
management of listed consumer goods firms in Nigeria. Expo facto research design was used and
a sample of nine (9) consumer goods firms from a population of twenty-one (21). OLS regression
was employed for data analysis. The result reveals that there is a significant negative relationship
between audit firm size and earnings management, suggesting that big 4 auditors do constrain
earnings management of the sampled firms, while a significant positive relationship was observed
between audit fees and earnings management, implying that audit fees do not constrain earnings
management. However, the study therefore recommends that regulators and policy makers should
encourage the deployment of Big Four audit companies in auditing annual reports and accounts
of listed firms to constrain earnings management.

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Published

2024-08-20

How to Cite

Giwa, L., Pajo, S., & Abel, D. Z. (2024). AUDIT QUALITY AND ITS EFFECT ON EARNINGS MANAGEMENT OF LISTED CONSUMER GOODS FIRMS IN NIGERIA . TSU-International Journal of Accounting and Finance, 3(1), 1–12. Retrieved from https://tsuijafc.k-publisher.com/index.php/tsuijaf/article/view/108

Issue

Vol. 3 No. 1 (2024): International Journal of Social and Management Sciences (IJOSMS)

Section

Articles