AUDITORS ATTRIBUTES AND AUDIT QUALITY OF SERVICES FIRMS INNIGERIAN

Abstract

This research examined how auditor attributes influence audit quality in Nigerian financial
services firms. Using an ex-post facto research design, the study analyzed all forty-nine (49)
firms listed in the financial services sector of the Nigerian Exchange Group (NGX) over the
period 2015–2024. The results indicate that higher levels of auditor independence are linked to
a reduction in financial statement restatements, reflecting enhanced audit quality. Conversely,
abnormal audit fees and the issuance of qualified audit opinions tend to increase the likelihood
of restatements, signalling reduced audit quality. Joint audits and auditor tenure, alongside the
control variables of firm size and return on assets (ROA), showed no significant effect. The
study recommends that regulators impose limits on the proportion of audit fees an audit firm
may earn from a single client, taking into consideration factors such as client size and
operational complexity.