International Journal of Academic Management Science Research (IJAMSR)   Year: 2023 | Volume: 7 | Issue: 11 | Page No.: 2-12 Effect Of Audit Quality On Real Earnings Management Of Listed Consumer Goods Firms In Nigeria Download PDF Samuel Ejiro Uwhejevwe-Togbolo and Dr. Hope Ifeoma Orjinta Abstract: The study is concentrated on the effect of audit quality on real earnings management of listed consumer goods firms in Nigeria. Real earnings management, involves the manipulation of financial statements to mislead investors and other stakeholders about a firm's true financial performance while audit quality, is the degree of excellence and professionalism with which an audit is conducted. The study adopts a descriptive ex-post facto research design. The study covers a period of 2016- 2022. Population includes all the twenty (20) listed consumer goods firm on the floors of the Nigerian Exchange Group (NEG) throughout the period of the study as at December 2022. the results of the pooled Ordinary Least Square (OLS) regression conducted for the study show that audit fees have positive insignificant effect on audit quality of listed consumer goods firm in Nigeria. Again, the result on auditors' industry specialization indicates a negative but significant effect on real earnings management among listed consumer goods firm in Nigeria while the result on audit firm size showed a negative but significant relationship between audit firm size and real earnings management. The study concluded that audit firm size and auditors' industry specialization have a significant influence on real earnings management amongst listed consumer goods firms in Nigeria. It was recommended in the study that Consumer goods firm should consider hiring auditors with industry specialization since they have a better understanding of the specific industry peculiarities and operations distinct from other sectors.