EFFECT OF AUDIT PRICING ON QUALITY OF AUDIT AMONGST DEPOSIT MONEY BANKS IN NIGERIA.

Abstract

The Study 'effect of audit pricing on quality of audit amongst Deposit Money Banks in Nigeria' aimsto determine the effect of audit quality, audit fee and audit tenure on return on assets of Nigerian banks. The corporate collapses and failures experienced in the banking sector amidst the clean audit reports has been perceived as not too conducive to both local and foreign investors in the country which necessitate the urgent need to develop strategies to detect and prevent business fraud and take cursory looks at the risk factors associated with businesses, and thereby directly, or indirectly repose the confidence of investors in the financial reporting system. The study covers the period from 2011 to 2020 and utilizes secondary sourced data that will be extracted from the annual financial statements sampled banks. A sample of 5 deposit money banks is conveniently selected. The study adopts Ex-post facto design to evaluate the effects of audit pricing on quality of financial reports of deposit money banks in Nigeria. Analytical techniques for both descriptive and inferential statistics on Least squares multiple regression estimation mechanisms shall be established. The model undergoes a number of diagnostic tests before executing the main analysis. Hausman Test for panel data is used to ascertain the best estimator between fixed effect and random effect regression model for the study. Pearson Product-Moment Correlation is applied to estimate the degrees of relationship among the study variables. The study recommendations therefore shall be made after analysis and findings.