Determinants of audit quality: evidence from Nigerian listed insurance companies

Автор: Olabisi Jayeola, Kajola Sunday Olugboyega, Abioro Matthew Adekunle, Oworu Oyefemi Olympus

Журнал: Вестник Волгоградского государственного университета. Экономика @ges-jvolsu

Рубрика: Финансы. Бухгалтерский учет

Статья в выпуске: 2 т.22, 2020 года.

Бесплатный доступ

The studyexamines thefactors that determine audit qualityamonglisted insurance companies in Nigeria. The study adopts Ex-post facto research design, and 15 companies are purposively selected, out of 25 listed insurance companies in Nigeria as of 2018. Panel data is extracted from the annual account and reports of the selected companies over a period of ten years (2009-2018). Pearson correlation analysis, Ordinary Least Square (OLS) and Regression are the statistical tools used for the analysis. The results of the studyreveal a significant relationship between the audit firm size, audit tenure, audit fee, cash flow and audit quality (p 0.05). The studyconcludes that audit fees, audit firm size, audit tenure and cash flowfrom operations are major determinants of audit qualityas each of them has significantlycontributed toaudit qualityoflisted insurance companies in Nigeria. Therefore, the Nigerian listed insurance companies should place a high premium on audit firm size, audit fees, and short term audit tenure when engaging services ofan audit firm.


Quality audit, auditor's tenure, audit fee, auditor's independence, joint audit, cash flow from the operation

Короткий адрес:

IDR: 149131637   |   DOI: 10.15688/ek.jvolsu.2020.2.17

Список литературы Determinants of audit quality: evidence from Nigerian listed insurance companies

  • Abiahu M.F.C., Amahalu N.N. Effect of Taxation on Dividend Policy of Quoted Deposit Money Banks in Nigeria (2006-2015). EPH International Journal of Business and Management Science, 2017, vol. 2, iss. 3, pp. 1-30.
  • Adeyemi S.B., Fagbemi T.O. Audit Quality, Corporate Governance and Firm Characteristics in Nigeria. International Journal of Business and Management, 2010, vol. 5, no. 5, pp. 169-179.
  • Adeyemi S.B., Okpala O. The Impact of Audit Independence on Financial Reporting: Evidence from Nigeria. Business and Management Review, 2011, vol. 1, no. 4, pp. 9-25.
  • Amahalu N.N. et al. Audit Quality Determinants: Evidence from Quoted Health Care Firms in Nigeria, International Journal of Academic Research in Accounting, Finance and Management Sciences, 2017, vol. 7, no. 4, pp. 216-231.
  • Amahalu N.N., Ezechukwu B.O. Determinants of Audit Quality: Evidence from Deposit Money Banks
  • Listed on Nigeria Stock Exchange. International Journal of Academic Research in Accounting, Finance and Management Sciences, 2017, vol. 7, no. 2, pp. 117-130.
  • Bauwhede H.V., Willekens M. Evidence on (the Lack of) Audit-Quality Differentiation in the Private Client Segment of the Belgian Audit Market. European Accounting Review, 2004, vol. 13, no. 3, pp. 501-522. DOI: 0963818042000237106.
  • Cohen J., Krishnamoorthy G., Wright A.M. Form Versus Substance: The Implications for Auditing Practice and Research of Alternative Perspectives on Corporate Governance. Auditing: A Journal of Practice & Theory, 2008, vol. 27, no. 2. DOI: ssrn.1010201.
  • Clinch C.R. Individual and Job-Related Variation in Infant Feeding Practices Among Working Mothers. American Journal of Health Behaviour, 2010, vol. 34, no. 2, pp. 186-196. DOI:
  • DeAngelo L.E. Auditor Size and Audit Quality. Journal of Accounting and Economics, 1981, vol. 3, no. 3, pp. 183-199. DOI:
  • DeFond M.L., Zhang J. A Review of Archival Auditing. Research Journal of Accounting and Economics, 2014, vol. 58, no. 2, pp. 275-326. DOI: 10.1016/j.jacceco.2014.09.002.
  • Eisenhardt K.M. Agency Theory: An Assessment and Review. Academy of Management Review, 1989, vol. 14, no. 1, pp. 57-74. URL: 10.5465/amr.1989. 4279003.
  • Enofe A.O., Mgbame C., Aderin A., Ehi-Oshio O.U. Determinants of Audit Quality in the Nigerian Business Environment. Research Journal of Finance and Accounting, 2013, vol. 4, no. 4, pp. 36-43.
  • Fama E.F., Jensen M.C. Agency Problems and Residual Claims. Journal of Law and Economics, 1983, vol. 26, no. 2, pp. 327-349. DOI: 10.1086/ 467038.
  • Francis J.R. What Do We Know About Audit Quality? The British Accounting Review, 2004, vol. 36, no. 4, pp. 344-368.
  • Financial Reporting Council. An Appendix to the Consultation Document, Draft Revised UK Stewardship Code, 2008.
  • Hay D., Davis D. The Voluntary Choice of an Audit of Any Level of Quality. Auditing A Journal of Practice and Theory, 2004, vol. 23, no. 2, pp. 37-54.
  • Hermanson D.R., Tompkins J.G., Veliyath R., Ye Z. The Compensation Committee Process. Contemporary Accounting Research, 2012, vol. 29, no. 3, pp. 666-709.
  • Hussainey K. The Impact of Audit Quality on Earnings Predictability. Managerial Auditing Journal, 2009, vol. 24, no. 4, pp. 340-351.
  • Hussein F.E., Hanefah M.M. Overview of Surrogates to Measure Audit Quality. International Journal of Business and Management, 2013, vol. 8, no. 17, pp. 84-91.
  • IAASB. A Framework for Audit Quality: Key Elements that Create an Environment for Audit Quality. Supplement to the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements. Vol. 3. New York, International Federation of Accountants, 2014, pp. 1-69. URL: http://
  • ICAEW. No Surprises: The Case for Better Risk Reporting. Balance Sheet, 2002, vol. 10, no. 4, pp. 18-21.
  • Jensen M., Meckling W. Theory of the Firm: Managerial Behaviour, Agency Costs, and Ownership Structure. Journal of Financial Economics, 1976, no. 3, pp. 305-360.
  • Krishnan J., Schauer P. C. Differences in Quality Among Audit Firms. Journal of Accountancy, 2001, vol. 192, no. 1, pp. 234-245.
  • Mahdi S., Ali M. Firm Size, Audit Regulation, and Fraud Detection: Empirical Evidence from Iran. Management, 2009, vol. 4, no. 1, pp. 5-19.
  • Mgbame C.O., Eragbhe E., Osazuwa N.P. Audit Partner Tenure and Audit Quality: An Empirical Analysis. European Journal of Business and Management, 2012, vol. 4, no. 7, pp. 154-162.
  • Morris R. The Early Uses of Industrial Relations Concept. Journal of Industrial Relations, 1987, vol. 49, no. 4, pp. 532-553. DOI: 10.1177/00221856870 2900407.
  • Pham N.K., Duong H.N., Pham T.O., Ho N.T.T. Audit Firm Size, Audit Fee, Audit Reputation, and Audit Quality: The Case of Listed Companies in Vietnam. Asian Journal of Finance and Accounting, 2017, vol. 9, no. 1, pp. 67-79. DOI:
  • Schauer P.C. The Effect of Industry Specialization on Audit Quality: An Examination Using Bid-ask Spreads. Journal of Accounting and Finance Research, 2002, vol. 10, no. 1, pp. 76-86.
  • Vanstraelen A. Impact of Renewable Long-Term Audit Mandates on Audit Quality. European Accounting Review, 2000, vol. 9, no. 3, pp. 419-442.
  • Watts R.L., Zimmerman J.L. The Demand for and Supply of Accounting Theories: The Market for Excuses. The Accounting Review, 1978, vol. 54 (2), pp. 273-306.
  • Zerni M., Haapamaki E., Rvinen T.J.A., Niemi L. Do Joint Audits Improve Audit Quality? Evidence from Voluntary Joint Audits. European Accounting Review, 2012, vol. 4 , no. 1, pp. 1-35.
Статья научная