ABSTRACT
The
study determined the effect ofAuditors’ report on financial performance of
banking sector in Nigeria. The specific objectives are to; determine the effect
of audit quality on return on asset, ascertain the effect ofauditfirm size on
return on equity, determine the effect of auditors’ report on profit after tax
of banks in Nigeria. The study adopted ex postfacto research design and
extracted data from cross section of commercial banks over a period of 7 years,
audit quality, audit firm size werejointly used as proxiesfor audit report
-while return on asset, return on equity and profit after tax -were employed as
proxyforfinancial performance. Based on the nature of data extracted, the panel
leas squares method of data analysis -was engaged to investigate the
relationship ofthe variables. It wasfound that auditors’ report has no
significant effect on return on assets of banks, auditors’ report has
significant effect on return on equity of banks, there is significant effect of
auditors’ report on profit after tax of banks. The study therefore concludes
that thefinancial crisis amongstsome notablefirms has raised doubts about the
credibility offinancial reporting hence investors have made the provision of
high quality financial reporting by external auditors a requisite. Based on the
findings it -was recommended that; banks should continue to engage reputable
audit firms so as to enhance their procedures and banking operations,
managements ofbanks should ensure that various organs that enforce compliance
are not compromised to quality reporting, audit firms should always exhibit
professionalism in conducting their auditfunction so that reportedprofits
reflects thefinancialposition ofbanks.
JOSEPH, . (2024). Effect of auditor’s report on financial performance of banking sector in Nigeria:- Joseph Onyinyechi A. Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-auditors-report-on-financial-performance-of-banking-sector-in-nigeria-joseph-onyinyechi-a-7-2
., JOSEPH. "Effect of auditor’s report on financial performance of banking sector in Nigeria:- Joseph Onyinyechi A" Mouau.afribary.org. Mouau.afribary.org, 30 Jul. 2024, https://repository.mouau.edu.ng/work/view/effect-of-auditors-report-on-financial-performance-of-banking-sector-in-nigeria-joseph-onyinyechi-a-7-2. Accessed 30 Oct. 2024.
., JOSEPH. "Effect of auditor’s report on financial performance of banking sector in Nigeria:- Joseph Onyinyechi A". Mouau.afribary.org, Mouau.afribary.org, 30 Jul. 2024. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-auditors-report-on-financial-performance-of-banking-sector-in-nigeria-joseph-onyinyechi-a-7-2 >.
., JOSEPH. "Effect of auditor’s report on financial performance of banking sector in Nigeria:- Joseph Onyinyechi A" Mouau.afribary.org (2024). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-auditors-report-on-financial-performance-of-banking-sector-in-nigeria-joseph-onyinyechi-a-7-2