AUDIT QUALITY AND FINANCIAL REPORTING QUALITY OF CONSUMER GOODS FIRM IN NIGERIA

Abstract

This study looked into how audit quality affected Nigerian consumer goods companies' financial reporting quality.  The study explicitly aims to ascertain how audit independence, audit fees, and audit committee size affect the quality of financial reporting.  The ex-post facto research design was used in this investigation.  Twenty-two (22) consumer goods companies that were listed on the Nigerian Exchange Group as of 2023 make up the study's population.  The 19-year research period ran from 2005 until 2023. Because multiple linear regression uses several variables for estimate, this study used it to examine the connection between the dependent and independent variables. The analysis's findings demonstrate that audit firm tenure (AUT) significantly improves the caliber of financial reporting.  The quality of financial reporting is significantly improved by the Audit Fee (AUFS).  The quality of financial reporting is 
significantly improved by audit committee members (AUCS).  The study therefore recommends that consumer good firms should use technically competent audit firms, maintain existing audit tenure at its average length of ten years, retain Big4 audit firms, sustain or slightly raise audit fees, and retain audit committee size that will support good financial reporting practices.