IMPACT OF AUDIT REPORT ON FINANCIAL PERFORMANCE OF NIGERIAN DEPOSIT MONEY BANKS (A CASE STUDY OF FIRST BANK PLC, ABA)

ABSTRACT This study investigates the impact of audit reports on the financial performance of Nigerian deposit money banks, with a particular focus on First Bank Plc, Aba. Audit reports serve as a critical tool for ensuring transparency, accountability, and credibility in financial reporting. In an economy like Nigeria, where trust in financial institutions is essential, the role of audit reporting becomes even more significant. The research adopts a descriptive and analytical approach, utilizing both primary and secondary data. Questionnaires were administered to bank staff, auditors, and financial analysts, while financial records and audit reports were analyzed over a defined period. The study evaluates how audit opinions—unqualified, qualified, adverse, and disclaimer—affect financial performance indicators such as profitability, return on assets, and investor confidence. Findings reveal that audit reports significantly influence financial performance. Unqualified audit reports tend to boost investor confidence and enhance financial growth, while negative audit opinions can damage reputation and reduce financial stability. The study concludes that effective and transparent audit reporting contributes positively to the performance and sustainability of Nigerian banks.