ABSTRACT

The study focused on Auditor's characteristics and audit quality in listed financial service companies. Specifically, the study sought to empirically examine how auditor’s independence, audit tenure, audit rotation, and audit fees impacts on audit quality in some listed insurance companies in Nigeria. To guide the study, four research questions, and four hypothesis raised. The study scope span selected insurance companies in Nigeria using the Nigeria exchange group (NXG)as a basis of sampling selection.

An exploratory research design was adopted and the population of the study comprised  all 26 listed insurance companies on the Nigeria Exchange Group as at December  2022. A sample of twenty (20) insurance companies was arrived at after due computation using the Taro yamane (1967) sample size determination formular at a 90% confidence interval. Data for the study were obtained through secondary sources and information from annual audit reports and accounts records. The Data obtained were analyzed via the Statistical package for Social Sciences (SPSS).

Findings obtained from the study indicates a statistically significant relationship between auditor’s independence, audit fees, and audit quality; however, the result showed an absence of statistically significant relationship between audit tenure, audit rotation, and audit quality.

Based on the findings, the study recommends among other things, the need to enhance auditor independence and transparency in auditor-client relationships, thereby bolstering the credibility of audits; and that financial institutions should carefully recommend and, if necessary, re-calibrate their audit fee structures.