Audit Quality and Financial Performance of Listed Deposit Money Banks in Nigeria,
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Date
2024
Journal Title
Journal ISSN
Volume Title
Publisher
Published by Université Felix Houphouet Boigny (Côte d’Ivoire).
Abstract
The role of audit quality in enhancing the financial performance of listed Deposit Money
Banks (DMBs) in Nigeria is an important issue as shareholders are interested in the credibility of
financial information disclosed by the firms’ financial statements. This study examined the impact
of audit firm size, audit fees and audit report lag on the return on assets of listed DMBs in Nigeria.
The Ex-post facto research design was adopted for the study. The study population was made up
of sixteen (16) DMBs and ten (10) banks were sampled purposively. The secondary data were
extracted from the audited annual report of the sampled banks. The data extracted covering the
period of 2013 to 2022 were analyzed using the descriptive and regression analysis. The findings
revealed that audit firm size has a positive and significant impact on return on assets (𝛽= 0.019, P<
0.01); audit report lag has a negative and significant influence on return on assets (𝛽= -0.000,
P<0.05); audit fees have an insignificant impact on return on assets (𝛽= 0.002, P> 0.05). The study
concluded that audit fee levels do not conclusively determine the financial performance outcomes
and shorter audit report lags enhance timelines and credibility. It was recommended that regulators
should establish optimal timelines for audit report releases, thereby balancing the need for rigorous
audits with market demand for timely information.
Description
African Journal of Literature and Humanities
Keywords
Audit quality, financial performance, return on assets, audit fees, Deposit Money Banks
Citation
Adigbole E. A., Bamidele G. B., Adeyemi M. O. & Alex Enema David A. E. (2024). Audit Quality and Financial Performance of Listed Deposit Money Banks in Nigeria, African Journal of Literature and Humanities, 5 (3), 190 – 212.