THE MODERATING EFFECT OF AUDIT QUALITY ON THE THIRD-PARTY DISCLOSURES AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS IN NIGERIA.

This study examines the moderating effect of audit quality on third-party disclosures and the financial performance of listed manufacturing firms in Nigeria. The study covered the period 2018 to 2022, and the data were analyzed using descriptive statistics and Partial Least Square Structural Equation Modeling (PLS-SEM). The empirical results show that third-party disclosure has a significant positive effect on manufacturing firms’ financial performance. The moderating effect of audit quality on this relationship was significant. The findings also reveal that third-party disclosure has a significant effect on audit quality. This study concludes that third-party disclosure influences manufacturing firms’ financial performance, particularly third-party receivables and sales. This study recommends that third-party sales should be encouraged and that there should be more transparency in reporting third-party transactions because doing so enhances financial performance among other factors in the manufacturing sector