Title: Appraisal of Audit Quality Attributes on Performance of Listed Oil and Gas Multinational Companies in Nigeria
Authors: Emmanuel Omeresa
Volume: 8
Issue: 11
Pages: 23-28
Publication Date: 2024/11/28
Abstract:
The paper examined the effect of audit quality attributes on the performance of listed oil and gas multinational companies in Nigeria over a 10-year periods from 2014 to 2023. The independent variable is audit quality attributes measured by audit rotation, auditing firm reputation, and audit report timeliness, with return on assets as the dependent variable. Data was collected from the firms' annual reports from 2014-2023, and analyzed using descriptive statistics, correlation analysis, and panel data tests with the help of E-Views version 9.0. The study reported that auditors' rotation exerted negative significant effect on firm performance, auditing firm reputation exerted positive significant effect on firm performance while timely audit reports exerted positive insignificant effect on firm performance. Hence, the study concludes that frequent auditors' rotation reduces the performance of the sampled firms while timely audit reports do not translate to higher ROA. Also, the more the sampled firms use larger audit firms, the more they report high ROA. On this note, the study submits that regulators are to ensure that are not rotated too frequently as this may have adverse effect on the performance of the sampled firms. Also, small auditing firms are advised to align with larger auditing firms as this synergy will have high significant effect on them. Lastly, regulators should curb the statutory requirements for timeliness in reporting in order to overcome the limitation of insufficient time