AUDIT QUALITY AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA

This study examines the audit quality on the financial performance of listed manufacturing firms in Nigeria. The research addresses the crucial need for reliable financial reporting in corporate organizations and the role of external auditors in ensuring transparency and accountability. The study explores the relationship between audit quality proxies--audit tenure, audit fees, and audit firm size--and financial performance measures, particularly Return on Assets _(ROA). The research employs a cross-sectional research design, utilizing secondary data from audited financial statements of manufacturing firms listed on the Nigeria Stock Exchange over a period of five years (2018-2022). The findings indicate that audit tenure has a positive and significant inflation on financial performance, implying that longer audit tenure enhances company performance. However, audit fees demonstrate a negative and significant influence on financial performance, indicating that higher audit fees may lead to improved financial outcomes. Additionally, the sludy reveals that larger audit firm size is associated with better financial performance in listed manufacturing firms. These results contribute to the understanding of the complex relationship between audit quality and financial performance. The study underscores the importance of audit quality in ensuring reliable financial reporting, investor confidence, and inyormed decision-making. Theoretical implications highlight the need to refine existing models and methods related to audit quality and financial analysis. Practical implications extend to investors, regulators, auditors, and manufacturing firms, emphasizing the significance of audit quality in influencing financial outcomes. In conclusion, this research recommends that manufacturing firms focus on hiring competent and experienced auditors to enhance financial performance. Additionally, audit firms should ensure access to relevant information to facilitate a Comprehensive audit process. Moreover, listed companies should provide auditors with suficient information to improve financial performance and foster transparency. Overall, this study contributes to the body of kmowledge on audit quality's impact on financial performance and offers insights for stakeholders in the Nigerian manufacturing sector. KEYWORDS; audit quality, financial performance, manufacturing firms, Nigeria, audit tenure, audit fees, audit firm size, Return on Assets (ROA)