Audit Quality and Shareholders’ Earnings of Listed Non-Financial Companies in Nigeria

Abstract

The study investigates the effect of audit quality on shareholders’ earnings of listed non-financial companies in Nigeria. The population of the study consists of the total one hundred and eleven (111) companies listed on the Nigerian Exchange Group as at 31^st December, 2022 with a sample of thirty-seven (37) companies. Data was obtained from the audited annual reports and accounts of the selected sampled firms between the period 2018 and 2022. The study employed correlation and ordinary least square regression to analyse the data. The result revealed that Audit size (AS) had positive and significant effect on earnings per share (EPS) while Audit fees (AF) had negative and insignificant effect on earnings per share (EPS). It was recommended that shareholders should retain the engagement of the big-four audit firms by way of extension of audit tenure but reduce audit fees payable in order to significantly increase their earnings per share.