JOURNAL OF ACCOUNTING AND BUSINESS

IMPACT OF AUDIT INDEPENDENCE, AUDIT FIRM SIZE ON FINANCIAL REPORTING QUALITY OF LISTED FINANCIAL SERVICES FIRM IN NIGERIA

AISHATU ALIYU UMAR, DR USMAN BABA ALIYU, ABDUL GARBA
March 6, 2026

Abstract

The study investigated the impact of audit independence, audit firm size on financial reporting quality of listed financial services firms in Nigeria. Ex-post facts research design was utilized for the study. The source of data for the study is secondary and was collected through anuual reports of the listed financial services firms, purposive sampling technique was used and data collected were analyzed using (ordinary least square robust (OLS). Findings of the study revealed that audit independence, audit firm size showing significant impact on financial reporting quality. The study, based on the research findings concluded that audit independence with positive impact play a vital role in assuring and promoting the audience of shareholders and potential investors on financial statement, by demonstrating stronger oversight and strategic decision which enhances the credibility and transparency of financial reports. Also concluded that firms audited by more larger or more reputable firms typical associated with stronger regulated compliance and professional expertise tend to produce higher quality financial reports. It recommends among others that regulatory authorities should continue to enforce strict audit independence standards to ensure there are no conflicts of interest that could influence the auditors work.

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JOURNAL OF ACCOUNTING AND BUSINESS

Published in JOURNAL OF ACCOUNTING AND BUSINESS

ISSN: 1596-9912

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