Assessing Audit Effectiveness in Nigerian Deposit Money Banks: The Moderating Role of Audit Quality on Fiscal Performance

Abstract

The study looked at how organizational control influenced the determinants of audits effectiveness in Nigerian registered reserve cash institutions, as well as the effect of audits qualities on fiscal performances. The ex post facto study approach was used in this investigation. All 13 LDMBs listed on the Nigerian Stock Exchange as of December 31, 2024, make up the study's sample size. Since the entire population was studied, a sampling method was not required. Data were derived from secondary sources. The logit regression approach was employed for data analysis. The study's findings demonstrated a clear association between audit tenure and audit independence. Nigerian listed deposit money banks' financial performance has been significantly impacted by the proxies of the independent variable. Based on the results, this analysis indicates that the A unit increase in audit tenure corresponds to a 0.025 decline in the natural log of financial performance. However the study makes recommendations on how the Nigerian Deposit Money Banks (DMBs) may take long-term institutional ownership into account. This is because long-term institutional shareholders are more inclined to keep an eye on management and, as a result, demand higher audit quality from Big Four audit firms.