Impact of Audit Firm Size on Audit Quality and Assurance
Student: Ezekiel Segun Ajayi (Project, 2025)
Department of Accounting
Ekiti State University, Ado-Ekiti, Ekiti State
Abstract
This study investigates the relationship between audit firm size and audit quality, as well as its impact on assurance. Using employees of selected deposits money banks in Ikeja, Lagos State, Nigeria. This research employs a quantitative approach to examine the effect of audit firm size on audit quality proxies, including audit fees, audit report lag, and discretionary accruals. The results suggest that larger audit firms are associated with higher audit quality and assurance, as evidenced by lower discretionary accruals and shorter audit report lags. However, the findings also indicate that the relationship between audit firm size and audit quality is non-linear, with diminishing returns to scale beyond a certain firm size threshold. The study contributes to the existing literature by providing insights into the complex relationship between audit firm size, audit quality, and assurance, with implications for audit regulators, practitioners, and users of financial statements.
Keywords
For the full publication, please contact the author directly at: ajayiezekiel119@gmail.com
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Institutions
- Covenant Polytechnic, Aba, Abia State 1
- Covenant University, Canaan Land, Ota, Ogun State 4
- Crawford University of Apostolic Faith Mission Faith City, Igbesa, Ogun State 2
- Crescent University, Abeokuta, Ogun State 1
- Cross Rivers University of Technology, Calabar, Cross Rivers State 142
- Delta State Polytechnic, Ogwashi-Uku, Delta State 11
- Delta State Polytechnic, Otefe, Delta State 12
- Delta State University, Abraka, Delta State 139
- Ebonyi State University, Abakaliki, Ebonyi State 17
- Edo University, Iyamho, Edo State 10