Audit Quality and Financial Performance of Listed Deposit Money Banks in Nigeria

Abstract:The study examined how listed deposit money banks in Nigeria performed financially and how audit quality affected it. Thirteen specified deposit money banks made up the study’s population, and census sampling was used to choose each bank. Over the course of 10 years, from 2013 to 2022, secondary data were gathered from the audited annual reports and accounts of Nigeria’s listed deposit money banks. For this study, the ex-post facto (after-the-fact) research design was chosen. Regression analysis was applied to the data analysis. The findings showed that audit firm size had a positive but insignificant effect on financial performance, audit tenure had a negative and insignificant effect on the financial performance of listed deposit money banks in Nigeria, and audit fee and auditor independence had a significant and positive effect on financial performance as represented by earnings per share. Among other things, it is advised that deposit money banks avoid using a certain audit firm for an extended length of time, since this can lower the quality of audit services provided because the audit firm and client become more acquainted with one another over time.