ADEKOLA, Adeola Adebayo
Department of Accountancy
The Polytechnic, Ibadan, Oyo State, Nigeria
Corresponding author: deolaadekola1973@yahoo.com, 2348027171014
OLAPADE, Timothy
Orbit Maritime Ltd, Ajao Estate, Lagos.
orbitmaritimeltd@yahoo.com, 08033060491
OYENIYI, Caroline Oluwafunmilayo
Department of Accountancy
The Polytechnic, Ibadan, Oyo State, Nigeria
funmioyeniyi01@gmail.com; 08137054151
&
ANIFOWOSE, Olutayo Modupe
Department of Accountancy
The Polytechnic, Ibadan, Oyo State, Nigeria
adesina.olutayo@polybadan.edu.ng, 07033748647
Abstract
The study investigated audit quality and performance of selected listed manufacturing concerns on
the Nigerian exchange. The statement of the problem stem from the seemingly negative relationship
between audit quality and performance as conducted by some author researchers thereby
necessitating more research to be carried out in that respect. The methodology was an ex-post facto
research design predicated on the secondary data of the publicly listed companies. The theoretical
underpinning was agency theory. The result shows a significant relationship between audit quality
and performance and concluded that audit quality is not an end in itself as to always ensure
performance. 1.58 (p-value = 0.114> 0.05) and 1.95 (p-value = 0.051> 0.05) respectively.
Noticeably, the Fcal (4, 615) in the work was 11.27 (p-value = 0.0000), thus confirming that audit
quality measures exert joint significant effect on ROA. The study recommends that the country’s
Financial Reporting Council and other regulators should develop policy guidelines to specifically
moderate auditors’ tenure vis-à-vis compliance to existing regulatory framework for financial
reporting. A reasonable threshold of the level of independence for auditors should be stipulated by
regulators so as to ensure that the auditors do not suffer any untoward injury in the conduct of their
core auditing mandate.
Keywords: Agency theory, Audit quality, financial reporting, performance