AFRICAN JOURNAL OF ACCOUNTING, FINANCE & MARKETING

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.

Despite numerous reforms and steps taken by the Central Bank of Nigeria (CBN) to manage the financial sector, financial instability persists among the regulated deposit money banks, mainly due to capital inadequacy. This study examines how diversification affects the financial stability of 15 selected national and international deposit money banks in Nigeria from 2009 to 2024. Diversification was measured by income, asset, and fund diversification, while the capital adequacy ratio (CAR) represented financial stability. The study adopted an ex post facto research design alongside a fixed-effects panel regression analysis in STATA 16.0. The results reveal that both income and fund diversification have a positive and significant impact on CAR, whereas asset diversification exerts a positive but insignificant effect. Board size and Bank size, used as control variables, also have a significant positive influence on financial stability. The study concluded that effective diversification strategies can improve bank stability. It recommended that banks should focus on increasing income-generating activities, adopt innovative asset allocation strategies, and expand funding sources to strengthen capital adequacy and long-term resilience.