An Analysis of Auditors Independence on Quality of Financial Reporting of Listed Deposit Money Banks in Nigeria.

This study examines the influence of auditor independence on the quality of financial reporting among listed Deposit Money Banks in Nigeria from 2014 to 2023. Grounded in the agency theory, the research investigates the impact of key variables audit tenure, audit fees, and audit committee characteristics on financial reporting quality. Using secondary data from financial statements of the selected banks, the study employs descriptive and inferential statistics, including multiple regression analysis, to evaluate the relationships. The findings reveal that audit tenure and audit fees positively and significantly influence financial reporting quality, while strong audit committee characteristics enhance oversight effectiveness. The study highlights that larger banks and those with higher profitability exhibit better financial reporting practices, while highly leveraged banks prioritize transparency to maintain stakeholder trust. Recommendations include implementing balanced audit tenure policies, standardizing minimum audit fees, and strengthening audit committee competencies. However, the study is limited by its focus on listed banks in Nigeria and the reliance on publicly available data, which may not capture internal dynamics. Future research could extend the scope to other financial institutions or incorporate qualitative insights into auditor-client relationships. This research underscores the critical role of auditor independence in promoting transparency and accountability in financial reporting.