EFFECT OF AUDIT ATTRIBUTES ON FINANCIAL REPORTING QUALITY OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

Abstract

This study examined the effect of audit attributes on financial reporting quality of listed consumer goods companies in Nigeria. Longitudinal research design was adopted, covering a sample of 18 firms listed on the Nigerian Exchange Group over the period of ten (10) spanning 2016 through 2025. Secondary data were obtained from audited annual financial statements, and the analysis was conducted using the dynamic panel Generalized Method of Moments (GMM) technique to address issues of endogeneity and unobserved heterogeneity. The findings revealed that financial reporting quality is dynamic, as past reporting quality significantly influences current reporting outcomes. Audit firm size was found to have a negative but statistically insignificant effect on financial reporting quality, Audit type (industry specialization) exhibited a positive and significant relationship with financial reporting quality. In contrast, audit fees and audit tenure showed significant negative effects on financial reporting quality. The study concluded that audit effectiveness in Nigeria’s consumer goods sector depends more on audit specialization and independence than on audit firm size. It was recommended among others that listed consumer goods companies in Nigeria should ensure stricter regulation of audit tenure, improved monitoring of audit fees, and greater emphasis on auditor specialization in order to enhance financial reporting quality and strengthen investor confidence.