AFRICAN JOURNAL OF ACCOUNTING, FINANCE & MARKETING

MANDATORY AUDIT ROTATION AND AUDIT QUALITY: EVIDENCE FROM SELECTED QUOTED FIRMS IN NIGERIA

Audu Omoakele Gabriel. Ph.D., Ajayi Perfect

January 28, 2026

Citation

AFRICAN JOURNAL OF ACCOUNTING, FINANCE & MARKETING , Vol. 10 (1) (2026) , pp. 19-30

Details

ISSN: 2805 - 4253
Published: January 28, 2026
Status: Published

Abstract

The broad objective of the study is to examine the relationship between mandatory audit rotation and audit quality of firms in Nigeria. The study made use of secondary data collected from randomly selected 50 companies out of the total 151 companies for a period of 5 years. The data collected were analysed using the Ordinary Least Square technique. The results from the regression revealed that audit fees had a positive and statistically significant relationship with audit quality in Nigeria. That means audit fees were found to be a strong factor that influences audit quality in Nigeria. It was also found that audit firm size had a positive but statistically insignificant relationship with audit quality and finally audit tenure had a negative and statistically insignificant relationship with audit quality. The findings showed that the number of years the auditor audits for a company has no influence on audit quality. The study  therefore recommends that policy makers should consider implementing flexible regulatory frameworks that allows a balance between mandatory audit rotation and the potential risks associated with abrupt changes in audit engagements.

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