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Audit Fees and Financial Reporting Quality: A Study of Listed Companies in Nigeria

Audit Fees and Financial Reporting Quality: A Study of Listed Companies in Nigeria

The extent of the audit fee is basically elucidated by client attributes related to audit effort and audit risk (Turpen, 1995). Previous studies document that higher audit fees are related to lesser earnings management and higher financial reporting quality. For instance, Franke, Johnson and Nelson (2002) study the effect of audit fees and earnings management in US. The study reveals that audit fees have a negative significant relationship with earnings management. This is affirmed by Hoitash, Markelevich and Barragato (2007) who apply 13,860 firm-year observations and determine the influence of audit fees and audit quality in US. Their finding reveals a negative significant correlation between audit fees and discretionary accruals. Mitra, Deis and Hossain (2009) examine the relationship between audit fees and FRQ of Big 5 client firms in US. They employ a sample of 6,852 firm- year observations for the period of 2000 to 2005. Their finding reveals that audit fees reduce the likelihood of abnormal accruals and thus increase earnings quality. More so, Carmona, Momparler and Lassala (2015) explore the relationship between audit fees and audit quality of listed firms in Spain. They show that audit fee is negatively and significantly related to discretionary accruals. This indicates that higher audit price is related lower discretionary accruals and higher financial reporting quality.
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The Nexus Between Audit Quality And Performance Of Listed Oil And Gas Firms In Nigeria

The Nexus Between Audit Quality And Performance Of Listed Oil And Gas Firms In Nigeria

joint provision of non-audit services potentially impairs auditors’ independence. In contrast, Umar (2012) investigates the stakeholders’ perception of non-audit services provision via auditor independence in Nigeria during the period 2005 to 2010; the findings reveal that there are a number of threats to auditor independence and one of which is familiarity, which comes as a results of long-term audit firm-client relationship. Also, Martinez and Moraes (2014) investigated the linkage between fees pay to auditors and firm performance of Brazilian listed companies from 2009 to 2010. Using Tobin’s q as a measure of firm performance, their results showed that there is a positive relationship between audit fees and firm value. In like manner, Farouk and Hassan (2014) examined the effect of audit quality and financial performance of listed cement firms in Nigeria. Using the correlational and ex-post facto designs, they employed multiple regression analysis to analyse the data. The findings show that auditor independence and auditor size have significant effects on the financial performance of the listed cement firms in Nigeria, with auditor independence having more influence than auditor size on financial performance. However, Sayyar, Basiruddin, Abdul Rasid, and Elhabib (2015) further investigated the impact of audit quality on firm performance in Malaysia; using multivariate regression analysis, the study found that there is insignificant link between audit quality variables (audit fees and audit firm rotation) and Return on Asset. Similarly, while audit fee is significantly and positively related to Tobin’s Q; audit firm rotation is insignificantly related to Tobin’s Q.
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Effect of Audit Committee Qualities on Financial Reporting of Listed Companies in Nigeria: A Perspective Study

Effect of Audit Committee Qualities on Financial Reporting of Listed Companies in Nigeria: A Perspective Study

An indispensable attribute of an effective audit committee is independence from management. By providing an independent source of counsel to the board, Audit Committees play a key character in an organisation’s governance configuration. It is a most important practice for the preponderance of its members to be independent of the entity to ensure the Audit Committee's independence. An independent audit committee member is a person who is not employed by or providing any services to, the organisation beyond his or her duties as a committee member. Independence of Audit Committee helps to ensure that management is transparent and will be held answerable to stakeholders (Treadway Commission, 1987; Cadbury Committee, 1992; Blue Ribbon Committee, 1999). The expectation is that independent Audit Committee members will be more objective and less likely to ignore possible deficiencies in the misappropriation and manipulation of financial reporting. Abbott, Parker & Peters, (2004) found evidence to sustain this interpretation within the perspective of financial reporting misstatements. After the passage of SOX in 2002, Audit Committees in the USA must consist exclusively of independent members to pre-approve audit and non-audit services and to set procedures for treatment ofcomplaints connected to accounting and auditing issues. Beasley, Carcello, Hermanson, & Neal (2000) found that Audit Committee independence is considerably related to financial reporting quality since financial statements fraud is more likely to occur in entities with less Audit Committee independence.
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Number of Regional Accounting Firms and Audit Fees—Based on the Experience Data of Listed Companies in China in 2016

Number of Regional Accounting Firms and Audit Fees—Based on the Experience Data of Listed Companies in China in 2016

DOI: 10.4236/ajibm.2019.93041 594 American Journal of Industrial and Business Management fees [1]. Francis (1984) conducted an empirical study of Australian listed com- panies and found that the total assets at the end of the trial, the number of sub- sidiaries, and the accounting firm’s brand had significant impacts on audit fees [2]. Chen, Ezzamel et al. (1993) studied the audit fees of listed companies in the UK by establishing a multiple linear regression model. The conclusions indicate that the relationship between the equity dispersal, the auditing time measured by the reporting date and the reporting date interval, the accounting firm’s place of registration, the accounting firm’s brand and the auditing expenses are signifi- cant [3]. Abbott et al. (2003) studied the impact of audit committee characteris- tics on audit fees. The results of the study indicate that the proportion of inde- pendent directors and members with financial background in the audit commit- tee is positively correlated with audit fees [4]. Joseph et al. (2010) studied the au- dit fees from the perspective of the characteristics of the board of directors of listed companies, and found that the stronger the independence of the board of directors, the higher the diligence and the more professional, the more audit fees are paid [5].
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Board Characteristics and Financial Reporting Quality among Jordanian Listed Companies: Proposing Conceptual Framework

Board Characteristics and Financial Reporting Quality among Jordanian Listed Companies: Proposing Conceptual Framework

Xie et al. (2003) uncovered that boards of directors with corporate or investment banking backgrounds are negatively related to the level of EM. This suggests that independent directors with corporate and financial backgrounds are critical to deter managed earnings. Bedard et al. (2004) observed that the presence of financial expert in the audit committee was negatively related with the probability of aggressive EM. Karamanou and Vafeas (2005) reported that the expertise of audit committee was positively related to the market reaction of earnings forecast. Additionally, Park and Shin (2004) found that the presence of officers from financial intermediaries in the board can limit abnormal accruals as the unmanaged earnings are below the target. They said that experienced outside board members able to understand the firm and its people better and consequently improve their governance competencies. Based on the above discussion, it can be said that there is a potential relationship between board financial expertise and EM. Thus the following hypothesis is proposed:
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International Financial Reporting Standard (IFRS) Adoption and Its Impact on Financial Reporting: Evidence from Listed Nigeria Oil and Gas Companies

International Financial Reporting Standard (IFRS) Adoption and Its Impact on Financial Reporting: Evidence from Listed Nigeria Oil and Gas Companies

In view of the seemingly inexorable rise of IFRS as the global accounting benchmark (Chua and Taylor, 2008) and critics’ concerns over its uniform applicability and relevance to different institutional, political, and economic contexts (Cahan, Liu, and Sun, 2008), it is increasingly important to empirically examine the impact of IFRS adoption on accounting quality in countries of different contexts (Liu, et al. 2011). Global adoption of international accounting standards has been increasingly debated. Supporters of International Financial Reporting Standards (IFRS) argue that the use of IFRS increases the quality of financial reporting and benefits investors (Daske et al., 2008). Opponents argue that a single set of standards may not be suitable for all settings and thus may not uniformly improve value relevance and reliability due to differences among countries (Soderstrom and Sun, 2007). Empirical studies have mixed results on quality change after the adoption of IFRS in different countries. One of the inter-nationality dimensions is that the standard is not closely aligned with the economic or political institutions of any particular nation (Chua and Taylor, 2008), so there are arguments for assessment of IFRS practice on a country-by-country basis (Nobes, 2006).
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Financial Reporting Quality and Debt Maturity on Investment Efficiency in Non Financial Companies Listed on the Indonesia Stock Exchange in 2015 2017

Financial Reporting Quality and Debt Maturity on Investment Efficiency in Non Financial Companies Listed on the Indonesia Stock Exchange in 2015 2017

The second hypothesis in this study predicts that debt maturity has a positive effect on investment efficiency. Based on the results of the second hypothesis testing it can be concluded that debt maturity which is proxied by using short-term debt has no effect on investment efficiency. These results are not consistent with the results of research conducted by Christine & Yanti (2017), Jeon and Oh (2017), Sakti and Septiani (2015) and Gomariz and Ballesta (2013) which states that short-term debt maturities affect investment efficiency. The results of this study conclude that debt maturity is not a factor that can determine the increase or decrease in investment efficiency of companies listed on the IDX.
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The Impact of Audit Quality, Audit Committee and Financial Reporting Quality: Evidence from Malaysia

The Impact of Audit Quality, Audit Committee and Financial Reporting Quality: Evidence from Malaysia

The appointment of Big 4 auditors enables firms to detect larger losses earlier and thus reduce the amount of tampering with earnings. When a firm is audited by a Big 4 auditor, it mirrors the firm’s concerted effort to produce high FRQ and thus give stockholders proprietary and confidential information, and in turn lessen the range of accounting misrepresentations. (Palea, 2007) It would be expected that being audited by a big auditor would reduce this gap and improve company trust. The outcome of this research reveals that firms audited by a Big 4 auditor are able to detect huge losses earlier and to be less involved in financial reporting (George 2017). Companies can still survive with the existence of the Big 4. Therefore, the Big 4 may help to influence the FRQ. In light of the foregoing situation, the current study will use Big 4 auditors as proxies for AQ because audit firm size represented by big 4 auditors is a reliable proxy for AQ since larger auditors are believed to have stronger motivations and better competencies to deliver high-quality audit (Deangelo, 1981).
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AUDIT COMMITTEE CHARACTERISTICS, BOARD CHARACTERISTICS AND FINANCIAL REPORTING QUALITY IN NIGERIA

AUDIT COMMITTEE CHARACTERISTICS, BOARD CHARACTERISTICS AND FINANCIAL REPORTING QUALITY IN NIGERIA

Felo and Solieri (2009) termed audit committee members with financial experts to members that have past employment experience in finance or accounting, have professional certification in accounting, or any other financial oversight experience or backgrounds which result in financial sophistication. Song and Windram (2000) suggest that high level of financial literacy is needed for audit committee to effectively perform it oversight function of monitoring. The role of an audit committee in overseeing accountability of the management covers a wide scope, which include the overall process of corporate reporting. This demands the audit committee to possess accounting knowledge in order understand the financial report and make positive contribution that will lead to improved financial report. Financial literacy of audit committee member will go a long way to help in reducing fraud in corporate financial reporting. A formal recognition of this requirement was made in the U.S. by including a clause in Sarbanes-Oxley Act (2002) which stipulates every public listed company to disclose whether or not it has a financial expert in its audit committee.
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Effects of International Financial Reporting Standards (IFRS) on Financial Statements Comparability of Companies

Effects of International Financial Reporting Standards (IFRS) on Financial Statements Comparability of Companies

The result showed a strong and positive correlation between the variables for financial statements comparability. There is also a statistical significance relationship between SAS and IFRS introduction. The research also revealed that IFRS introduction is associated with information quality due to its statistical significance between the considered variables. This therefore shows that there is need for a policy shift in favor of IFRS introduction in order to enhance the uniformity, credibility and comparability of financial statements of listed companies in Nigeria. Based on the foregoing, the study recommends that the government should empower the financial reporting council of Nigeria (FRCN) to monitor and enforce standards and training to smoothen the introduction of International Financial Reporting Standards (IFRS). This process will enhance credible and qualitative financial statements, engendering growth and development of capital market, which will stir up the need to embrace and practice IFRS in Nigeria.
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MANDATORY IFRS INTRODUCTION AND FINANCIAL STATEMENTS COMPARABILITY: EVIDENCE FROM NIGERIAN LISTED COMPANIES

MANDATORY IFRS INTRODUCTION AND FINANCIAL STATEMENTS COMPARABILITY: EVIDENCE FROM NIGERIAN LISTED COMPANIES

The study examines whether the mandatory introduction of International Financial Reporting Standards (IFRS) enhances financial statements comparability of companies listed on the Nigerian stock exchange. The study specifically investigates the relationship between SAS and IFRS introduction based on key performance indicators of listed companies in Nigeria in terms of liquidity, profitability, gearing, reported earnings and market value. A survey study research method was adopted where 20listed firms’ published financial reports for 2011 under SAS was compared with 2012under IFRS. Mean, standard deviation and Pearson Correlation Statistic methods were used for the analysis. The findings revealed that the introduction of IFRS in Nigeria enhanced credible and qualitative financial statements that would engender economic growth and development. The study therefore recommends that government should empower significantly the financial reporting council of Nigeria (FRCN) to monitor and enforce standards and training to smoothen the introduction of IFRS.
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Determinants Of Internet Financial Reporting: Evidence From Selected Companies Listed On Nigeria Stock Exchange (NSE)

Determinants Of Internet Financial Reporting: Evidence From Selected Companies Listed On Nigeria Stock Exchange (NSE)

type, gearing and board composition have significant and positive relationship with voluntary internet disclosure quality (Agboola & Salawu, 2012; Monday & Nancy, 2016). The conflicting and inconsistent findings on the determinants of internet financial reporting have serious research implications. Internet financial reporting may influence the resources allocation of the economy. This is even more important to countries seeking direct foreign investment like Nigeria as larger number of potential investors may have access to information for investment decision making. Despite the significance of inflow of investment fund to the country, only a limited research effort on determinants of internet financial reporting in Nigeria has been directed to relationship between factors like foreign ownership, and institutional ownership on internet financial reporting. Therefore, this study attempts to fill this gap. The fact that findings from developed countries revealed a very strong influence of company size, and profitability on internet financial reporting (IFR) by the company, it is considered appropriate to include the two variables in the model for the current study. Therefore, the study aims to determine the influence of foreign ownership, institutional ownership, company size and profitability on the disclosure of financial statements via the Internet.
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Impact of Audit Committee on the Association Between Financial Reporting Quality and Shareholder Value

Impact of Audit Committee on the Association Between Financial Reporting Quality and Shareholder Value

Regulatory and governmental authorities in Malaysia provide substantial financial planning to help attract potential investors and improve value for shareholders. Companies are always encouraged to improve the quality of financial reporting. However, some managers tend to manipulate earnings’ data to make it appear more attractive. Stakeholders rely on the audit committee to motivate managerial provision of accurate data for accounting processes. Hence, this study examines the impact of financial reporting quality on shareholder value and assesses impacts from the audit committee’s influence and its relationship to financial reporting. The proposed study will use modified Jones model to evaluate the financial reporting quality. Also, the study proposes ordinary least square for identifying the impact of (i) independent audit committee, (ii) financial and accounting expertise, and (iii) audit committee size as proxies to investigate the effect of the audit committee on the relationship between financial reporting quality and shareholder value.
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Internal Audit, Board of Directors and Financial Reporting Quality

Internal Audit, Board of Directors and Financial Reporting Quality

society’s conditions were tense from the political perspective and because of presidential elections and transfer of power, thus this research is limited from the contextual perspective since the majority of the members of the board of directors and corporate executives depended on the government, and could affect the financial reporting in a specific way. The first issue prevented us from reaching internal auditors of all listed companies at the securities exchange. It seems that the second limitation may have an impact on corporate performance, financial reporting quality, audit firm, and other factors.
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RELEVANCE OF FINANCIAL REPORTING ON PROFITABILITY OF QUOTED COMPANIES IN NIGERIA

RELEVANCE OF FINANCIAL REPORTING ON PROFITABILITY OF QUOTED COMPANIES IN NIGERIA

The above analysis shows that there is statistical relationship between quality of financial reporting and profit after tax. This is because the p-value obtained (0.0000) was lower than the benchmark value of 5% specified in Eviews for this analysis. This also implies that as quoted companies improve the quality of financial reporting, the level of their profit will also begin to improve, since both variables have direct relationship with each other. However, this result was different from the Durbin Watson test, since the value obtained (i.e.3.230773) was higher than the benchmark of 2, hence, we can conclude that using durbin watson the variable do not show relationship with each other. this also implies that there is problem of serial correlation problem with the variables, which implies that that the variables are not correlated with each other. But, the result of the R square also validate the output of the P-value, because it shows a value of 99%, which implies that the independent variable accounts for 99% of the dependent variable while the remaining 1% can be accounted for by other factor outside this model. The variance in the result of the statistical parameters used in this analysis may seems to contradict each other, however, this contradiction can be settle by the result of the F statistic (i.e. 0.0000).Therefore, since this value is lower than the benchmark significance value specified in Eviews for this analysis, we can conclude that there is significant relationship between both variables. This is in agreement with the study of Cerf (as cited in Fremgen 1963) who directly emphasized that financial reporting quality has positive relationship with profitability and shareholders wealth
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Audit Firm Size, Audit Fee, Audit Reputation and Audit Quality: The Case of Listed Companies in Vietnam

Audit Firm Size, Audit Fee, Audit Reputation and Audit Quality: The Case of Listed Companies in Vietnam

Audit quality is considered as an essential factor affecting the reliability of financial information. The aim of this study is to assess the effects of audit firm characteristics, including audit reputation, audit fees and audit firm size, on audit quality. A sample of 192 companies listed on Hanoi and Ho Chi Minh Stock Exchange for the period of 2006-2014 was selected. Multiple regression was used to analyze the data. The findings show that Big 4 auditors in Vietnam provide high audit quality than non-Big 4 auditors. Interestingly, in Vietnam context, except for the audit firms in the Big 4 group, the findings suggest that smaller audit firms provide better audit quality. Additionally, the results reveal that the more audit fees the auditors receive, the lower audit quality they provide. The critical role of audit quality has attracted significantly scholarly attention, however, prior studies have mainly focused on firms in developed countries. Little is known about audit quality in an emerging economy context such as Vietnam. This study adds to the limited number of studies on audit quality of listed companies in emerging economies.
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INTERNET FINANCIAL REPORTING QUALITY: A RESEARCH ON TOURISM COMPANIES LISTED ON BIST.

INTERNET FINANCIAL REPORTING QUALITY: A RESEARCH ON TOURISM COMPANIES LISTED ON BIST.

Financial reporting might be evaluated as one of the most important tasks to be performed by accounting departments of companies due to the increasing and developing information needs of stakeholders. In order to provide trustworthy and satisfactory information within the scope of financial reporting data processing and information presentation needs to fulfill the requirements on national and international levels and to be standardized for the sake of better comparison by stakeholders. Quality of reports regarding to complete and transparent disclosure of financial and non-financial measures is another critical issue which needs to be argued and clarified by accounting professionals and authorities. Major aim of this study is to evaluate the internet financial reporting qualities of tourism companies listed in BIST (Borsa Istanbul - Istanbul Stock Exchange) by means of additional criteria to previous methods suggested in former studies in accounting literature. Various financial and non-financial measures are going to be included and weighed as part of quality designation model for internet financial reporting.
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THE INFLUENCE OF AUDIT COMMITTEE ATTRIBUTES ON THE QUALITY OF FINANCIAL REPORTING EVIDENCE FROM NIGERIAN BANKS

THE INFLUENCE OF AUDIT COMMITTEE ATTRIBUTES ON THE QUALITY OF FINANCIAL REPORTING EVIDENCE FROM NIGERIAN BANKS

The number of audit committee meetings has been used frequently as proxy for diligence and activeness of audit committee in corporate governance literature (McMullen and Raghunandan, 1996; Song and Windram, 2004; Al-Lehaidan, 2006). Prior studies on the relationship between the frequency of meetings and the quality of financial reporting, has so far, produced mixed results. For instance, while Bryan, Liu and Tiras (2004) and Koh et al. (2007) are in agreement that audit committee that meets regularly improves the transparency of reported earnings and therefore enhance earning quality (proxy for financial reporting quality), Yang and Krishnan (2005) and He, Wright, Evans and Crowe (2007) found no evidence of a significant relationship between the number of audit committee meetings and earnings management (another proxy for financial reporting quality). Contrary to this position, McMullen and Raghunandan, (1996) document that companies with less audit committee meetings are often found to have problems of financial reporting. O‟Sullivan, Percy and Stewart (2008) confirm that audit committee meeting frequency is positively associated with the disclosure of forward-looking information in financial statements. In their report on the study of the collapse of firm of Andersen & Co, Chen and Zhou (2008) noted that the frequency of audit committee meeting is an important mechanism in enhancing good corporate governance practice.
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CORPORATE GOVERNANCE CHARACTERISTICS AND TIMELINESS OF FINANCIAL REPORTING IN NIGERIA

CORPORATE GOVERNANCE CHARACTERISTICS AND TIMELINESS OF FINANCIAL REPORTING IN NIGERIA

Licensed under Creative Common Page 25 a conflict of interest amongst principal (i.e. shareholders) and agent (i.e. managers). This conflict of interest is the foremost problem that the principle of corporate governance intends to address. Companies should, therefore, seek to limit this principal-agent problem through a solid and effective corporate governance mechanism. Corporate governance mechanisms can be used to check and monitor the activities and operations of the agent (i.e. managers), thereby ensuring that they are in line with the principals’ interests. This enables the owners to overcome the issues of lack of credible information. This study focused on corporate governance mechanisms like board size, board independence, audit committee independence and their various effects on the timeliness of financial reports.
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Audit Quality and Financial Performance of Companies Listed in Nairobi Securities Exchange

Audit Quality and Financial Performance of Companies Listed in Nairobi Securities Exchange

confidential agent, derives his broad function in society from the need for expert and independent examination as well as the need for an expert and independent judgement supported by the examinations. Thus, accountants and auditors are expected to know and realize that the public continues to expect a low rate of audit failures. This requires that the auditors must plan and perform their audit in a manner that will minimize the risk of undetected material misstatements. The accountant is under a duty to conduct his work in a manner that does not betray the confidence which he commands (Limperg Institute, 1985). The importance of the theory of inspired confidence isthat the duties and responsibilities of the auditors are a derivation from the confidence that are bestowed by the public on the success of the audit process and the assurance which the opinion of the accountant conveys. Since this confidence determines the existence of the process, a betrayal of the confidence logically means a termination of the process or function. Carmichael (2004) in discussing the social significance of the audit stated that when the confidence that society has in the effectiveness of the audit process and the audit report is misplaced, the value relevance of that audit is destroyed. Therefore, auditors are expected to maintain reasonable quality assurance especially given that an audit failure is effectively a career-ending event. Audit provides assurance to the owners and management of companies and to investors and stakeholders, and along with financial reporting, corporate governance and regulations, supports confidence in the capital markets.
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