Effect of Audit Quality, Timeliness of Financial Reporting, Audit Committee and Audit Committee Independence on Financial Reporting Quality of Listed Service Firms in Nigeria
Year: 2026
Type: article
Abstract: This study focused on the effect of audit quality, timeliness of financial reporting, audit committee independence, and audit committee independence on the financial reporting quality of listed service firms in Nigeria. Financial reporting quality was measured using the accrual of the modified Jones model (1995). Data were collected from the annual reports and accounts of four selected service firms with complete data ranging from 2014 to 2024 (i.e., a period of 11 years). The data collected were analyzed using panel regression analysis. The findings revealed that audit quality and timeliness of financial reporting have no significant effect on financial reporting quality. However, audit committee size and independence significantly affect financial reporting quality. Therefore, the study concludes that audit committee size and independence positively influence service firms’ financial reporting quality in Nigeria. Based on the findings of this study, it is recommended that the following:Since audit quality was found to have no significant effect on financial reporting quality, regulators and corporate boards should focus on enhancing the effectiveness of external audits by ensuring that auditors maintain professional skepticism, independence, industry expertise, and compliance with ISA. To improve audit outcomes, audit firms should also invest in continuous professional development and advanced audit technologies.Although the timeliness of financial reporting did not significantly influence the quality of financial reporting, firms should continue to ensure that financial reports are released promptly without compromising accuracy, completeness, and compliance with applicable accounting standards. Management should establish efficient financial reporting systems that balance speed with reliability
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7203939714
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