Key Audit Matters Disclosure (KAMD), Audit Quality and Financial Reporting Quality of Quoted Non-financial Firms in Nigeria

This study examined the influence of key audit matters disclosure and auditor quality on financial reporting quality of quoted non-financial firms in Nigeria. The study adopted an ex-post facto research design. The data were gathered from a final sample size of forty-five (45) quoted nonfinancial firms representing 43% of the total population for 10 years, from 2014 to 2023. Both descriptive and inferential statistics were adopted for data analyses. The results showed that key audit matters disclosure and audit quality have a negative and statistically significant influence on discretionary accruals (a proxy for financial reporting quality), thereby improving financial reporting quality of quoted non-financial firms in Nigeria. Control variables, namely, firm size and leverage, though positive, have a non-significant influence on financial reporting quality. The findings concluded that key audit matters disclosure and audit quality are a strong pointer to critical audit issues. Its disclosure enhances transparency and improves financial reporting quality. Consequently, this study provides empirical evidence in support of key audit matters disclosure and recommended the continuity of key audit matters disclosure, as well as audit quality in enhancing financial reporting quality.