Audit Firm Tenure and Quality of Financial Reporting Among Listed Deposit Money Banks in Nigeria

Abstract

Abstract This study investigates the effect of audit firm tenure on the quality of financial reporting among listed deposit money banks in Nigeria.The study focuses on three key dimensions of financial reporting quality: timeliness of financial reporting, frequency of restatements, and audit fees. Panel data was gathered from the annual reports of selected Nigerian deposit money banks, covering a period from 2014 to 2023. Using multiple regression analysis, the study found that audit firm tenure had no significant effect on the timeliness of financial reporting and the frequency of financial statement restatements, indicating that longer auditor-client relationships did not compromise reporting speed or accuracy. However, a significant positive relationship was observed between audit firm tenure and audit fees, suggesting that extended tenures may lead to higher audit costs. The study concludes by recommending policy considerations around audit tenure and fees to ensure an optimal balance between a