Audit Quality and Financial Performance of Listed Manufacturing Firms

Student: Jibrin Ahmad (Project, 2025)
Department of Accounting
Bayero University, Kano, Kano State

Abstract

This study investigates the effect of audit quality on the financial performance of listed manufacturing firms in Nigeria for the period 2018–2022. Specifically, it examines the influence of auditor independence, audit committee effectiveness, and audit fees on financial performance measured by Return on Assets (ROA). The study adopts a correlational research design and utilizes secondary data obtained from audited annual reports of twelve (12) purposively selected listed manufacturing firms. Using panel data regression analysis, the findings reveal that audit committee effectiveness significantly and positively impacts financial performance, reinforcing the importance of strong corporate governance structures. Auditor independence and audit fees, however, exhibit insignificant relationships with financial performance during the study period. The model recorded an adjusted R² of 30.16%, indicating that audit quality indicators moderately explain variations in financial performance. The study concludes that strengthening audit committee effectiveness is crucial for improving financial outcomes among manufacturing firms in Nigeria. Recommendations are made for firms to enhance the independence and effectiveness of their audit committees to ensure greater financial accountability and transparency.

Keywords
Quality Auditor Independence Audit Performance Assets Manufacturing Financial
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