DO AUDITORS’ CHARACTERISTICS ENHANCE QUALITY OF FINANCIAL REPORTING IN NIGERIA?

EGBADJU, Lawrence U.
Department of Accounting,
Federal University Otuoke, Yenagoa,
Bayelsa State, Nigeria
CHIJIOKE, Willie Ishiusah
Faculty of Management Science
Department of Accounting
Ignatius Ajuru University of Education
ABSTRACT
This study investigates the impact which auditor’s characteristics have on financial reporting quality in
Nigeria. The period which the study covers is from 2015 to 2019 of fifteen consumers goods firms listed in
the Nigerian Stock Exchange as information about them are extracted from their financial statements. Two
models, the Jones and the Modified Jones, are used as the dependent variable while audit firm size audit
independence and company size are the independent variables. The results of the Fixed Effect and Random
Effect Ordinary Least Squares reveals that for the Jones model, audit independence and company size
negatively affect financial reporting quality while audit firm size relationship with financial reporting
quality is positive and significant. With respect to the Modified Jones model, audit firm size and company
size are positively related to financial reporting quality while audit independence is negatively related to
financial reporting quality. We gave some recommendations.
Keywords: Financial reporting quality; audit firm size; audit independence; company size