Audit Quality, Abnormal Audit Fee and Auditor Attributes

Nkemjika, Ogujiofor Magnus; Sunday, Anichebe Alphonsus; Nwamaka, Ozuomba Chidinma

doi:10.17722/ijme.v8i3.292

Cited by 3 publications

(3 citation statements)

References 8 publications

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“…The result aligns with the postulation that larger audit firms decrease earnings management. The result is in tandem with studies (Ogujiofor et al, 2017;Oladipupo & Monye-Emina, 2016).…”

Section: Results and Discussion Of Findingssupporting

confidence: 87%

“…The listed firms are expected to perform a mandatory statutory audit to increase investors' confidence in the financial statements. Several studies (e.g., (Ogujiofor, Anichebe, & Ozuomba, 2017;Oladipupo & Monye-Emina, 2016)) have shown that audit type improves earnings quality and are of the view that large audit firms promote high financial reporting quality and invariably high earning quality. Conversely, studies by Choi, Kim, and Zang (2010); Kinney Jr and Libby (2002) and Libby, Rennekamp, and Seybert (2015) claim that economic bonding and client bargaining may compromise auditors' independence.…”

Section: Model Specification and Measurement Of Variablesmentioning

confidence: 99%

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Does the strength of women in the upper echelon influence earnings quality? The application of critical mass theory

Inneh,

Ayoola,

Olasanmi

et al. 2024

IJAEFA

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Globally, several financial scandals were witnessed within the first decade of the 21st century that necessitated a robust corporate governance mechanism to improve financial reporting quality. Empirical evidence shows that men dominate the boards involved in these scandals. In an attempt to restore the confidence of stakeholders in the financial report, financial regulatory authorities in European Union economies recommend a well-constituted gender-diverse board where the marginalised gender is at least 40 percent of the board. However, in Nigeria, there is little research on women's participation in corporate board decisions taken into cognizance of critical mass theory. Thus, the study investigates how the critical mass of female representation on the corporate board and audit committee affects earnings quality. The study employs a longitudinal design by collecting secondary data on eleven deposit money banks from 2011-2022. The study uses data collected after testing endogeneity problems using Hausman's test. The results show that females on the board and audit committee significantly affect the quality of earnings when reaching the critical mass threshold. The study provides policy implications for supporting more significant involvement of women in board and audit committees based on business cases rather than social justice. Hence, this study proposes a mandatory thirty percent threshold compliance for board gender diversity, which the Central Bank of Nigeria voluntarily recommended.

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“…The result aligns with the postulation that larger audit firms decrease earnings management. The result is in tandem with studies (Ogujiofor et al, 2017;Oladipupo & Monye-Emina, 2016).…”

Section: Results and Discussion Of Findingssupporting

confidence: 87%

Section: Model Specification and Measurement Of Variablesmentioning

confidence: 99%

Does the strength of women in the upper echelon influence earnings quality? The application of critical mass theory

Inneh,

Ayoola,

Olasanmi

et al. 2024

IJAEFA

View full text Add to dashboard Cite

show abstract

“…(Dao et. al., 2012;Muzatko and Teclezion, 2016;Nkemjika et al, 2017;Martinez and Moraes 2017;Ganesan et al, 2019;Alves 2021) provided evidence of a positive relationship between audit fees and financial reporting quality. Muzatko and Teclezion (2016) investigated the relationship between audit fees and earnings management as a proxy for financial reporting quality, their results…”

Section: Hypotheses Developmentmentioning

confidence: 99%

أثر جودة المراجعة على جودة التقاریر المالیة(باللغة الانجلیزیة)

مسبح¹,

رمضان²

2022

مجلة الاسکندریة للبحوث المحاسبیة

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This study examines the effect of audit quality on financial reporting quality. It contributes to current accounting and auditing literature by providing empirical evidence on the effect of different audit quality proxies on financial reporting quality. Audit firm fees, audit firm tenure and audit firm size are used as proxies for audit quality. On the other hand, earnings management and accounting conservatism are used as proxies for financial reporting quality. These variables were measured using secondary data obtained from the financial statements of 152 firms listed in the Egyptian stock market in the period from 2016 to 2020 representing 608 firm-year observations, excluding non-financial firms due to their special nature. Results provided evidence of a positive relationship between audit firm size and audit firm fees on one hand and financial reporting quality on the other. However, results showed a negative relationship between audit firm tenure and financial reporting quality. These results provide evidence that financial statement users can trust the financial reports audited by Big 4 audit firms more than the financial reports audited by non-Big 4 audit firms. This provides implications for standard setters to focus more on the audit quality performed by non-Big 4 audit firms. Additionally the results provided implications for standard setters to control the audit firm tenure so as not to exceed 3 years, to maintain the high financial reporting quality.

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