AUDIT QUALITY AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

Résumé fourni par la source

This study examined how audit quality affects the financial performance of industrial goods companies listed on the Nigerian Exchange. Ex-post facto research design was utilized. Ten industrial goods firms were chosen with the use of purposive sampling. Also, 10-year secondary data (2015-2024) was gathered from the chosen firms’ yearly financial statements. Descriptive, correlation and regression analyses were employed to evaluate the data gathered. The results revealed that audit tenure has no substantial effect on the return on assets; audit fees significantly impact the return on assets; and audit independence significantly affects the return on assets of the Nigerian industrial goods firms under study. The study concludes that when evaluating the return on assets of the selected listed industrial goods firms, both current and potential investors cannot rely on the auditor's tenure, while audit fees and audit independence can be relied upon to measure ROA. The study recommended, among others that the auditor-client relationship should not last more than three years because the audit's neutrality and quality might be compromised if the auditor develops a close relationship with the client.