THE IMPACT OF AUDIT QUALITY ON FIRM’S PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract The study examines the relationship between audit quality and firm’s performance of listed consumer goods firms in Nigeria, it used both the agency theory and credibility theory. The data used was extracted from secondary source using the annual reports and accounts of listed consumer goods firms in Nigeria for the period of ten years, 2012 to 2021 from 16 consumer goods firms in Nigeria. Multiple linear regression technique is used to analyze the data, using descriptive statistics, Pearson correlation with the help of STATA, as a statistical tool of analysis. While, return on equity and economic value added were used as measures for firm’s performance. The finding from the study indicates that audit firm independence, joint audit, audit firm experience and audit firm partner tenure all have a positive and significant impact on firm’s performance of listed consumer goods firms in Nigeria, only audit firm reputation indicates a negative impact. Hence, shareholders are advised to ensure that their firms are audited by good audit firms that provides more independent, accurate and efficient audit services.