Effect of Audit Quality on Financial Reporting Quality of Listed Non-Financial Companies in Nigeria

This study examined the effect of audit firm characteristics of auditor independence, auditor type, audit firm tenure and audit firm size on the financial reporting quality of listed insurance companies in Nigeria. Data were generated from the annual reports and accounts of thirteen sampled insurance companies during the period 2012 to 2022. Descriptive statistics, Pearson correlation and multiple regression were utilized to analyze the study data. It was found that both auditor independence and audit firm size have a positive and significant effect on financial reporting quality of listed insurance companies in Nigeria. Auditor type has a negative and significant effect on financial reporting quality of listed insurance companies in Nigeria. While audit firm tenure has a positive and insignificant effect on financial reporting quality. The study, therefore, recommends that the shareholders should emphasize on engaging the service of the Big-4 auditors because of the experience, resources, and international presence which make them more likely to be independent, objective, and therefore, perform quality audit that supports high financial reporting quality.