EFFECT OF AUDIT QUALITY ON FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

ABSTRACT This study investigated the effect of audit quality on financial performance of listed consumer goods companies in Nigeria. The study sampled sixteen (16) listed consumer goods companies on the Nigerian Exchange Group. The duration for thisstudy was from 2014-2023 (ten years).Multiple regression analysis was conducted to evaluate the linear relationship between the dependent (financial performance proxied by return on assets and cash flow return on investment) and the independent variables (audit firm size, audit fees, audit tenure and audit firm experience. The study employed linear regression analysis. Findings revealed that audit firm size, audit fees, and audit tenure have a positive but statistically insignificant effect on the return on assets (ROA) of listed consumer goods companies in Nigeria.In contrast,audit firm experience exerts a negative and significant effect on ROA. On the other hand,when financial performance is measured using cash flow return on investment (CFROI), audit firm size and audit tenure also show positive but insignificant effects. However,audit fees have a significant negative impact on CFROI. Notably, audit firm experience exhibits a positive and significant influence on CFROI. The study therefore concludes that audit quality play a significant role in enhancing financial performance of listed consumer goods companies in Nigeria. The study therefore recommended that due to the significant role that audit quality attributes play on financial performance of companies, regulatory bodies and corporate entities should consider policies that allow for a reasonable duration of audit engagements. This can foster a deeper understanding of a company's financial operations, enhance audit quality, and improve financial performance. However, measures should also be taken to prevent overfamiliarity,which may compromise auditor independence