AUDIT ATTRIBUTES AND FINANCIAL REPORTING QUALITY OF LISTED BUILDING MATERIAL FIRMS IN NIGERIA
AUDIT ATTRIBUTES AND FINANCIAL REPORTING QUALITY OF LISTED BUILDING MATERIAL FIRMS IN NIGERIA
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Date
2014-07
Authors
UMARU, Dangana
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Abstract
External auditors conduct an independent examination of a firm‟s financial statements,
records and supporting documents and give opinion about the truth and fairness of the
reports, and that the report is free from material misstatements and errors. While, this can be
considered as a good control mechanism for ensuring the quality of corporate financial
reporting, there is a great concern by the regulatory authorities and other stakeholders in view
of the corporate scandals and failures that adversely affect corporate entities in recent times
in Nigeria. This study examined the impact of audit firms‟ attributes on financial reporting
quality of quoted building material firms in Nigeria. The study employed correlation research
design using a sample of four listed building material firms for the period of ten years (2002
2011). Ordinary Least Square (OLS) multiple regression technique was employed in the
analysis of the panel data collected for the study. The study found that audit compensation
and audit firm independence have significant positive impact on the financial reporting
quality of quoted building material firms in Nigeria at 99% confidence level. The finding
suggested that, audit compensation and provision of non-audit services in the quoted building
material firms in Nigeria have improved the quality of their financial reporting during the
period under review. The study recommends that, policy makers (SEC and FRC) should
make policies that would strengthen the auditors‟ independence in the building material firms
in Nigeria. It is also recommended that SEC and FRC should make it a policy that public
companies, especially building material firms, should consider in employing their auditors an
optimal compensation.
Description
A THESIS SUBMITTED TO THE SCHOOL OF POSTGRADUATE STUDIES, AHMADU BELLO UNIVERSITY ZARIA, IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF SCIENCE DEGREE (M.SC) IN ACCOUNTING AND FINANCE
DEPARTMENT OF ACCOUNTING FACULTY OF ADMINISTRATION AHMADU BELLO UNIVERSITY, ZARIA
Keywords
AUDIT ATTRIBUTES,, FINANCIAL REPORTING,, BUILDING MATERIALS,