IMPACT OF AUDIT INDEPENDENT AND REGULATORY FRAMEWORK ON CREDIBILITY OF FINANCIAL REPOTING OF LISTED COMERCIAL BANKS IN NIGERIA

ABSTRACT This study investigates the impact of audit independence and regulatory frameworks on the credibility of financial reporting in Nigeria’s banking sector. Motivated by persistent audit failures and financial scandals, the research examines how auditor objectivity and regulatory oversight influence the accuracy, reliability, and transparency of banks’ financial statements. Using an ex post facto research design, primary data were collected from audited financial statements, regulatory publications, and relevant literature for ten commercial banks listed on the Nigerian Exchange Group covering 2020–2024. Descriptive statistics, correlation analysis, and multiple regression techniques were employed for data analysis. Findings reveal that both audit independence and regulatory frameworks significantly and positively affect financial reporting credibility, with audit independence exerting a stronger influence. Recommendations include mandatory auditor rotation,, strengthened enforcement capacity of oversight bodies, and improved audit committee effectiveness. These measures are expected to reinforce stakeholder confidence, improve governance, and enhance the stability of Nigeria’s financial system.