AUDIT QUALITY AND FINANCIAL REPORTING QUALITY OF LISTED MANUFACTURING COMPANIES IN NIGERIA

This study investigates the relationship between audit quality and financial reporting quality among listed manufacturing companies in Nigeria. The research specifically examines four dimensions of audit quality auditor independence, audit fees, auditor engagement performance, and audit committee quality and their effects on financial reporting quality. Using panel data regression analysis on secondary data obtained from selected listed manufacturing companies, the study reveals significant insights. The findings show that auditor independence, audit fees, and auditor engagement performance each have a statistically significant positive relationship with financial reporting quality, indicating that improvements in these audit attributes enhance the credibility and reliability of financial disclosures. However, audit committee quality exhibited an insignificant negative relationship with financial reporting quality, suggesting that the mere presence of audit committees without proper functionality or expertise may not contribute meaningfully to financial reporting improvements. The study concludes that strengthening audit independence, allocating adequate audit fees, and enhancing auditor engagement performance are crucial to improving financial reporting quality. Regulatory bodies and company boards are advised to enforce policies that promote auditor objectivity, ensure fair audit remuneration, and build effective audit oversight mechanisms. These findings contribute to the broader discourse on audit effectiveness and transparency in corporate financial reporting in emerging markets.