Industry Type and Audit Quality of Listed non Financial Firms in Nigeria

This study investigated the effect of industry type on audit quality among listed non-financial firms in Nigeria. Drawing on an ex-post facto research design, data were analyzed for a purposive sample of 75 firms over a ten-year period (2014–2023). Audit quality was proxied by audit firm size, auditor’s opinion, and audit tenure, with attention to variations across industry categories. The results indicated that while a significant relationship does not exist between industry type and audit firm size and tenure, it exhibited a significant negative association with audit opinion. Overall, the models explain very little variation in the audit quality measures, as reflected by the low R-squared values across all dependent variables. These results suggest that while industry type may influence the nature of audit opinions, it does not substantially affect the selection of audit firm or the tenure of audit engagements. Given these results, it was recommended amongst others that regulators and professional bodies should develop clearer, sector-tailored audit guidelines to ensure that auditors apply consistent judgment across different industries, especially since industry type influences audit opinions.