IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF CONSUMER GOODS FIRMS IN NIGERIA
This study examines the impact of audit quality on earnings management of listed consumer goods firms in Nigeria. The study adopted correlational research design. The population of the covers all twenty-one (21) listed consumer goods firm in Nigeria and two-stages filter was used to arrive at a sam...
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| Format: | Article |
| Language: | English |
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Department of Accounting and Finance, Federal University Gusau
2024-09-01
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| Series: | Gusau Journal of Accounting and Finance |
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| Online Access: | https://journals.gujaf.com.ng/index.php/gujaf/article/view/271 |
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| _version_ | 1823857073952129024 |
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| author | Sirajo Bappah Awwal Saad Saidu Adamu Shehu Usman Hassan |
| author_facet | Sirajo Bappah Awwal Saad Saidu Adamu Shehu Usman Hassan |
| author_sort | Sirajo Bappah |
| collection | DOAJ |
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This study examines the impact of audit quality on earnings management of listed consumer goods firms in Nigeria. The study adopted correlational research design. The population of the covers all twenty-one (21) listed consumer goods firm in Nigeria and two-stages filter was used to arrive at a sample size of fifteen (15) consumer goods firms listed the floor of Nigerian Exchange group as at 31st December, 2022, the data were extracted from annual reports and accounts of the sampled firms for the period of ten (10) years from 2013-2022. Multiple regression was used as a technique of data analysis, regression result shows that audit reporting lag, audit client’s importance and auditor independence have a positive and significant impact on earnings management of the sampled firms, while auditor’s tenure has a negative and significant impact on earnings management. Based on the findings, the study concluded that audit reporting lag, audit client’s importance and auditor independence enhanced the earnings management. while, auditor tenure does not affect earnings management. Based on findings and conclusion, it is therefore, recommends that the regulatory bodies such as Financial Reporting Council of Nigeria and Security and Exchange Commission in Nigeria should ensure that audited reports for private companies are release within a regulated period, this is because prolonged audit lagged increase earnings management by giving management of the companies enough time to manipulate earnings. This will impede the users of financial information to take an informed decision.
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| format | Article |
| id | doaj-art-935efda33f98477fbd604b6cdeaad8df |
| institution | Kabale University |
| issn | 2756-665X 2756-6897 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | Department of Accounting and Finance, Federal University Gusau |
| record_format | Article |
| series | Gusau Journal of Accounting and Finance |
| spelling | doaj-art-935efda33f98477fbd604b6cdeaad8df2025-02-12T01:06:47ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2756-68972024-09-015110.57233/gujaf.v5i1.01IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF CONSUMER GOODS FIRMS IN NIGERIASirajo Bappah0Awwal Saad1Saidu Adamu2Shehu Usman Hassan3Federal University of Kashere, Gombe State, NigeriaFederal University of Kashere, Gombe State, NigeriaFederal University of Kashere, Gombe State, NigeriaFederal University of Kashere, Gombe State, Nigeria This study examines the impact of audit quality on earnings management of listed consumer goods firms in Nigeria. The study adopted correlational research design. The population of the covers all twenty-one (21) listed consumer goods firm in Nigeria and two-stages filter was used to arrive at a sample size of fifteen (15) consumer goods firms listed the floor of Nigerian Exchange group as at 31st December, 2022, the data were extracted from annual reports and accounts of the sampled firms for the period of ten (10) years from 2013-2022. Multiple regression was used as a technique of data analysis, regression result shows that audit reporting lag, audit client’s importance and auditor independence have a positive and significant impact on earnings management of the sampled firms, while auditor’s tenure has a negative and significant impact on earnings management. Based on the findings, the study concluded that audit reporting lag, audit client’s importance and auditor independence enhanced the earnings management. while, auditor tenure does not affect earnings management. Based on findings and conclusion, it is therefore, recommends that the regulatory bodies such as Financial Reporting Council of Nigeria and Security and Exchange Commission in Nigeria should ensure that audited reports for private companies are release within a regulated period, this is because prolonged audit lagged increase earnings management by giving management of the companies enough time to manipulate earnings. This will impede the users of financial information to take an informed decision. https://journals.gujaf.com.ng/index.php/gujaf/article/view/271Audit Reporting LagAuditor clients ImportanceAudit IndependenceEarnings Management |
| spellingShingle | Sirajo Bappah Awwal Saad Saidu Adamu Shehu Usman Hassan IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF CONSUMER GOODS FIRMS IN NIGERIA Gusau Journal of Accounting and Finance Audit Reporting Lag Auditor clients Importance Audit Independence Earnings Management |
| title | IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF CONSUMER GOODS FIRMS IN NIGERIA |
| title_full | IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF CONSUMER GOODS FIRMS IN NIGERIA |
| title_fullStr | IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF CONSUMER GOODS FIRMS IN NIGERIA |
| title_full_unstemmed | IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF CONSUMER GOODS FIRMS IN NIGERIA |
| title_short | IMPACT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF CONSUMER GOODS FIRMS IN NIGERIA |
| title_sort | impact of audit quality on earnings management of consumer goods firms in nigeria |
| topic | Audit Reporting Lag Auditor clients Importance Audit Independence Earnings Management |
| url | https://journals.gujaf.com.ng/index.php/gujaf/article/view/271 |
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