Effect of Audit Attributes on Financial Reporting Quality of Listed Consumer Goods Firms in Nigeria

Abstract

This study examined the effect of audit attributes on financial reporting quality of listed consumer goods firms in Nigeria. The ex po factor research design was employed and a purposive sampling technique was used to draw out the sample; the population of the study was 21 and a sample of 17 was used to represent the population out 21 listed consumer goods firms in Nigeria. secondary source of data was collected from the annual reports of the firms Listed in the NQX for the period of 5years (2-18-2022.Based on the analysis, the result revealed that The result revealed that audit type has positive and significant at significant at
5% having effect on financial reporting quality of listed consumer goods firms in Nigeria. On the other, audit report lag has negative but significant effect on financial reporting quality of listed consumer goods firms at 5% significant level. Equally, audit tenure has positive and no significant effect, audit fee and audit rotation have negative and no significant effects on financial reporting quality of listed consumer goods firms in Nigeria. This study therefore concludes that audit type and audit report lag are the determinant of financial reporting quality of listed consumer goods firms in Nigeria. Therefore, the study recommends that the consumer goods firms and regulators should take into consideration the employment of the big4 services as their expertise had proven a better quality of the financial reports. Also, consumer goods firms should discourage unethical practices activities that increases discretional accrual in financial statement that reduces quality of financial report, thereby sustaining ethical practices that promotes FRQ as stipulated in audit regulation (financial reporting council). The companies and allied matter act 2020 should consider a review of submission of audited report to lesser days than 90, as lesser days proved to reduce discretional accruals and improves financial reporting quality in the consumer goods firms in Nigeria.