Effect of Audit Quality on Earnings Reporting Quality of Listed Oil and Gas Firms in Nigeria
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The study investigates the effect of audit quality on earning quality reporting of listed oil and gas firms in Nigeria. The sample of eight (8) listed oil firms were made out of the population of eleven (11) oil and gas firms listed on the Nigerian Exchange Group (NXG) as at 31st December, 2022. Secondary source of data was used to obtain ten (10) year audited financial statements of the selected oil and gas companies quoted on the Nigeria stock exchange market. Correlation and ordinary least square regression statistical technique was used in analyzing the obtained data. The findings revealed that there is a significant relationship between audit quality and earnings quality reporting of the listed oil and gas firm in Nigeria. It was therefore recommended that the Board of Directors and shareholders should establish a policy to retain or increase fees payable to the external auditors including tenure extension to serve as motivational factor to the audit firms to ensure proper audit that will help to sustain the existing increasing of earnings quality reporting of the company. The shareholders could retain the size of their audit firms but clearly express concern on the quality of their earnings reporting for future improvement.
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