Effect of technology and auditor rotation on audit quality of listed Commercial Banks in Nigeria

Abstract

The study examined the effect of audit technology and auditor rotation on audit firm size among listed companies in Nigeria over the period 2010–2024. An ex post facto research design was adopted, and secondary data were obtained from the annual reports and corporate disclosures of selected listed companies. A total of 180 firm-year observations were analyzed using descriptive statistics, correlation analysis, and binary logistic regression techniques. The descriptive results indicated a high level of technology adoption among the sampled firms, while auditor rotation occurred relatively infrequently. Correlation analysis revealed positive associations among the technology-related variables and no evidence of severe multicollinearity. The regression results showed that Computer-Assisted Audit Techniques (CAATs) exerted a significant negative effect on audit firm size, while Technology Integration (TI) had a significant positive effect. However, Specialized Audit Software (SAS) and Auditor Rotation (AR) exhibited positive but statistically insignificant effects. The study concluded that technology integration significantly influences audit firm size and competitiveness. Therefore, audit firms should strengthen investment in advanced audit technologies and continuous professional training to improve audit effectiveness and sustain competitive advantage in the evolving auditing environment.