ABSTRACT

This investigated the effect ofaudit quality onfinancial performance ofbanks in Nigeria, its specifically aims to determine the effect ofAudit Fee on the financial performance of banks in Nigeria, Ascertain the effect ofAudit Firm Tenure on thefinancial performance ofbanks in Nigeria and Examine the effect of Joint Audit Firm on the financial performance of banks in Nigeria. Three research question and hypotheses were formulated in line with the objectives. Ex-postfacto research design is to be adopted for this study. The sample size used for this work was 4 banks. This bank is a quoted bank on the Nigerian stock exchange. Secondary data was used and was sourced from the annual report of the bank and the Nigeria stock exchange. Datafor the study was extracted through the financial statement ofthe bankfrom 2008 to 2018. This study was prompted as a result ofinability ofbank management to prevent the occurrence offrauds, errors, material misstatement etc. in the bank'sfinancial reports. Based on the data analyzed, the study found that joint audit firm has significant effects on return on capital employed of banks in Nigeria, also, that audit fee has significant affect return on capital employed ofbanks in Nigeria. Anotherfinding is that audit tenure has no significant effect on return on capital employed ofbanks in Nigeria. Therefore, the study recommends that the management of banks in Nigeria should get skillful and experienced joint auditors from big audit firms that has integrity, reputation and professional competence to help in the prevention ofsuch errors, frauds, material misstatement etc. Companies should make use ofthe services of auditfirms with unquestionable track records of audit quality and reputation.