DETERMINANTS OFAUDIT QUALITY: EVIDENCE FROM NIGERIAN LISTED INSURANCE COMPANIES

The study examines the factors that determine audit quality among listed insurance companies in Nigeria. The study adopts Ex-post facto research design, and 15 companies are purposively selected, out of 25 listed insurance companies in Nigeria as of 2018. Panel data is extracted from the annual acco...

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Published in:Vestnik Volgogradskogo gosudarstvennogo universiteta. Serii͡a︡ 3, Ėkonomika, pravo Ėkonomika, pravo, 2020-01, Vol.22 (2)
Main Authors: Jayeola Olabisi, Kajola, Sunday Olugboyega, Matthew Adekunle Abioro, Oworu, Oyefemi Olympus
Format: Article
Language:Russian
Subjects:
Accounting firms
Audit fees
Audit quality
Cash flow
Correlation analysis
Ex post facto design
Insurance
Insurance companies
Statistical analysis
Tenure
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Summary:The study examines the factors that determine audit quality among listed insurance companies in Nigeria. The study adopts Ex-post facto research design, and 15 companies are purposively selected, out of 25 listed insurance companies in Nigeria as of 2018. Panel data is extracted from the annual account and reports of the selected companies over a period of ten years (2009–2018). Pearson correlation analysis, Ordinary Least Square (OLS) and Regression are the statistical tools used for the analysis. The results of the study reveal a significant relationship between the audit firm size, audit tenure, audit fee, cash flow and audit quality (p < 0.05). However, there is no significant relationship between auditors independence, joint audit and audit quality (p > 0.05). The study concludes that audit fees, audit firm size, audit tenure and cash flow from operations are major determinants of audit quality as each of them has significantly contributed to audit quality of listed insurance companies in Nigeria. Therefore, the Nigerian listed insurance companies should place a high premium on audit firm size, audit fees, and short term audit tenure when engaging services of an audit firm.
ISSN:1998-992X
2408-9478
DOI:10.15688/ek.jvolsu.2020.2.17