Effect of Audit Quality on Organizational Performance in Nigeria

Abstract

The study examined the effect of audit quality on Organizational performance in Nigeria. The study adopts ex-post research design and simple random sampling method. The total sample of 10manufacturing companies, quoted on the Nigerian Stock Exchange (NSE) for the period of 10years from 2009- 2018. Secondary data was collected from financial statements and the data was analyzed using Ordinary least square Regression analysis to test the hypothesis. The results reveal that audit quality (number of employee in audit companies) has a significant effect on companies’ performance as represented by return on equity. The study concludes that there is a great significant positive relationship between the numbers of employee in audit firms and the performance achieved in terms of return on equity. The study recommends that number of employee is one of the great determinant of audit quality of audit assignment performed by the auditors and Nigerian companies must ensure that audit firm that has enough employee in all areas of audit are employ to enhance the company’s performance.