ADVANCED JOURNAL OF FINANCE AND ACCOUNTING
Integrity Research Journals
Model: Open Access/Peer Reviewed
DOI: 10.31248/AJFA
Start Year: 2022
Email: ajfa@integrityresjournals.org
Auditor's independence and the quality of financial reporting on listed FMCG in Nigeria
https://doi.org/10.31248/AJFA2024.023 | Article Number: 08A588A52 | Vol.2 (3) - December 2024
Received Date: 01 November 2024 | Accepted Date: 22 December 2024 | Published Date: 30 December 2024
Authors: Chukwuka John Okoh* and Solomon Ibrahim Audu
Keywords: Auditor's fee, audit tenure, fast moving consumer goods, non-audit service, timeliness.
This study examines the relationship between auditor independence and the quality of financial reporting among listed fast-moving consumer goods (FMCG) companies in Nigeria. The study adopted a survey research design and primary data from surveys among audit professionals who are engaged in audit services of the listed FMCG companies in Nigeria, the study explores how factors such as audit tenure, audit fees and non-audit service influence the financial reporting quality which is measured by timeliness. Auditors’ independence which is the independent variable in this study is represented by audit tenure, audit fees and non-audit services. On the other hand, financial reporting quality which is the dependent variable is represented by timeliness in the production of audited financial reports. The result of the study shows that audit fees and non-audit services do not have a significant influence on the quality of financial reporting of listed FMCG firms in Nigeria. In addition, the result further shows that audit tenure significantly influences the quality of financial reporting. It is concluded that audit independence has a significant influence on the quality of financial reporting of listed FMCG firms in Nigeria. Therefore, it is recommended that audit tenure should be maintained for the appointment of auditors to listed FMCG firms in Nigeria.
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