UGBAH, A. Andrew.
Department of Accounting and Finance,
University of Delta, Agbor, Delta State, Nigeria.
E-mail: ugbahaa@gmail.com
ABSTRACT
The study investigated the nexus between audit firm characteristics and earnings management among quoted insurance companies in Nigeria. Audit firm characteristics is examined in terms of audit fees, auditor experience, audit quality, and auditor switching. The population of the study consists of quoted insurance firms in the Nigerian Stock Group for the period of 2016 to 2022, and data were analyze using descriptive statistics, correlation matrix and Generalized Linear Regression technique. The results show that audit fees have a negative and insignificant relationship with earnings management. Auditor experience has a negative and significant with earnings management at 5% level of significance.
Audit quality has a positive and insignificant relationship with earnings management. Auditor switching has a negative and insignificant effect on earnings management. The study recommends that shareholders of insurance companies in Nigeria should engage the services of audit firms that with reasonable sound knowledge and experience about the industry for reducing earnings manipulations.
Keywords: Auditor experience, audit fees, audit quality, auditor switching and earnings management.