Auditors' Objectivity and Quality of Audit Reports in Listed Banks in Nigeria

This study investigates the relationship between auditors’ objectivity and the quality of audit reports in listed banks in Nigeria, focusing on key dimensions such as independence, professional skepticism, and ethical standards. Despite regulatory reforms aimed at enhancing financial stability, challenges related to audit quality and objectivity persist, undermining investor confidence. Grounded in agency theory and signaling theory, the research examines how auditors’ independence influences audit report accuracy. A cross-sectional design was employed, targeting 20 deposit money banks listed on the Nigerian Stock Exchange, with data collected from 212 participants through structured questionnaires. The findings reveal that auditors' independence, professional skepticism, and adherence to ethical standards significantly enhance the accuracy of audit reports. The results highlight the need for stronger regulatory enforcement and professional ethics to improve audit quality and restore trust in Nigeria’s banking sector. This study contributes to the empirical literature by offering insights into how auditors' objectivity can enhance financial reporting standards and promote financial stability.