AUDIT QUALITY AND FINANCIAL PERFORMANCE

This study investigates the relationship between audit quality and the financial performance of firms in Nigeria. The primary objective is to determine how audit quality variables it's; such as auditor independence, audit firm size, and audit tenure, influence the accuracy and credibility of financial reporting, which in turn affects financial performance. Using a structured questionnaire and a sample size determined by Taro Yamane’s formula, data were collected from accounting professionals and staff across selected firms. The study employed descriptive and inferential statistical methods, with data analyzed using SPSS. The findings revealed that auditor independence positively correlates with improved financial performance by ensuring objectivity and reducing management bias in reporting. Additionally, larger audit firms were found to enhance the credibility of financial statements due to better technical competence and global standards. However, excessively long auditor tenure was seen to reduce audit quality due to familiarity threats, emphasizing the importance of auditor rotation. The research contributes to the existing body of knowledge by offering empirical evidence from the Nigerian context and providing a methodological framework for similar studies. The study recommends strengthening regulatory oversight, enforcing auditor independence, promoting the engagement of reputable audit firms, and implementing mandatory auditor rotation to ensure continued audit quality and improved financial performance.