ABSTRACT

The study examine the effect of Audit Firm characteristics on Audit quality in Nigeria, with the

purpose to determine the relationship between Audit fee and Audit quality, the relationship

between Audit tenure and Audit quality, the relationship between Audit Firm size and Audit

quality in Nigeria. Secondary source of data collection was employed in this study. Due to

peculiar nature of this research work, the nature of research design used is ex-post facto and the

statistical tool used to analysis the data was the OLS method of multiple regression analysis. This

study assesses the determinants of audit quality in commercial banks listed on the floor of

Nigeria stock exchange. Based on the analysis conducted this present study concludes that audit

fees, audit tenure and audit firm size are found to be some of the major factors influencing the

quality of audit in Nigeria banks. The study also found that audit fees, audit tenure and audit firm

size have a positive and statistically significant relationship with audit 4uality at 5% level of

significance. From the findings of the study it is recommended that audit firms should ensure that

their staff is adequately reniuneratecl as this is likely to enhance audit quality. Banks in Nigeria,

should always employ the services of one of the big audit firms since its result in improving audit

quality.