AUDIT CLIENT ATTRIBUTE AND AUDIT QUALITY

ABSTRACT

This study sought to examine the relationship between Audit Client Attributes and Audit Quality of Deposit Money banks in Nigeria. The preliminary analysis of the data was evaluated using descriptive and correlation analyses. The regression analysis was conducted using the Ordinary Least Square method. The study found out that the relationship between firm size and audit quality is positive and statistically significant, the relationship between growth rate and audit quality is negative and statistically insignificant. Furthermore, the variable of capital intensity is negative and statistically non-significant, the relationship between leverage and audit quality is negative and statistically non-significant. The study recommends that the regulatory bodies, including the Financial Reporting Council of Nigeria (FRCN), should keep up their vigilance over the standards and procedures of auditing in the banking industry. This entails modifying audit regulations on a regular basis to conform to global best practices. Similarly, to successfully identify and manage conflicts of interest, audit firms should design and enforce policies and processes. Audit firms and regulatory agencies should work together to provide standardized metrics and assessment tools for assessing audit quality. Regular audits of the audit companies themselves can aid in locating potential improvement areas. In addition, deposit money banks, audit companies, and regulatory authorities should keep lines of communication open. Banks should be encouraged to ask auditors for clarification and advice on intricate financial transactions or reporting obligations. Finally, deposit money institutions should take a competitive audit market into account and work with audit companies that have a range of skills and competencies. This diversification can lower the possibility of complacency among audit companies and promote a stronger audit process.