AUDIT FIRM ATTRIBUTES AND FINACIAL REPORTING QUALITY OF LISTED MULTINATIONAL FIRMS IN NIGERIA
Abstract
This study examined the impact of audit firm attributes on the financial reporting quality of listed multinational firms in Nigeria, with a specific focus on audit firm size, audit fees, audit firm industry expertise, and audit firm tenure. The study employed a quantitative research design, analyzing panel data from 22 multinational firms listed on the Nigerian Exchange Group over a six-year period (2018–2023). Using the Robust Least Squares (RLS) estimation technique, the study investigated the extent to which these audit characteristics influence the quality of financial reporting. The findings revealed that audit firm size had a positive and statistically significant effect on financial reporting quality, while audit firm tenure showed a negative and significant relationship. In contrast, audit fees and audit firm industry expertise were found to have no significant effect. Based on these outcomes, the study recommended that firms engage larger, reputable audit firms to enhance reporting quality, and that regulatory bodies enforce auditor rotation policies to reduce risks associated with prolonged audit tenure.
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