Impact of Audit Market Concentration and Auditor Attributes on Audit Quality of Consumer Goods Firms in Nigeria

Authors

  • Muhammad Isah Tahir Department of Accounting, Nasarawa State University, Keffi, Nigeria
  • Abdulkarim Shaibu Alhassan Department of Accounting, Nasarawa State University, Keffi, Nigeria
  • Godwin Emmanuel Oyedokun Department of Accounting, Leed City University, Ibadan, Nigeria

DOI:

https://doi.org/10.33003/fujafr-2024.v2i1.79.166-177

Keywords:

Audit Market Concentration, Audit Quality, Auditor Attributes, Auditor Independent, Auditor Tenure

Abstract

This study investigated the relationship between audit market concentration, auditor attributes, and audit quality of quoted consumer goods firms in Nigeria.  A purposive sampling technique was used to select five (5) quoted consumer goods firms that consistently published their annual reports from 2012 to 2020. Secondary data were sourced from annual reports of the selected quoted consumer goods in Nigeria. Data collected were analyzed using the pooled regression least square estimation technique. The result of the study revealed that audit market concentration exerts a positive and significant effect on the audit quality of quoted consumer goods firms in Nigeria.  The result also indicates that the auditor’s independence positively and significantly impacts audit quality. In contrast, the auditor’s tenure has an insignificant positive effect on the audit quality of quoted consumer goods firms in Nigeria. Based on these findings, this study concludes that audit market concentration and auditor attributes improve audit quality of consumer goods firms in Nigeria. The study, therefore, recommends that firms ensure frequent auditor rotation to limit the chances of auditor-client over-familiarity which will jeopardize independence and reduce audit quality.

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Published

31-03-2024

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Vol. 2 No. 1 (2024): March 31, 2024

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How to Cite

Tahir, M. I., Shaibu Alhassan, A., & Emmanuel Oyedokun, G. (2024). Impact of Audit Market Concentration and Auditor Attributes on Audit Quality of Consumer Goods Firms in Nigeria . FUDMA Journal of Accounting and Finance Research [FUJAFR], 2(1), 166-177. https://doi.org/10.33003/fujafr-2024.v2i1.79.166-177

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