Editorial | OPEN ACCESS
Audit Firm Tenure, Audit Firm Size and Financial Reporting Quality of Listed Insurance Companies in Nigeria

Ahmed A. Abubakar1 , Abdulrahman N Abbas2 ,

1Department of Accounting, Adamawa State University, Mubi-Nigeria; 2Department of Accounting, Ahmadu Bello University, Zaria-Nigeria.

For correspondence:-  Ahmed Abubakar   Email: aabubakar202@gmail.com

Received: August 30, 2019        Accepted: Setember 21, 2019        Published: September 30, 2019

Citation: Abubakar AA, Abbas AN, Audit Firm Tenure, Audit Firm Size and Financial Reporting Quality of Listed Insurance Companies in Nigeria. Account Tax Rev 2019; 3(3):1-11 doi:

© 2019 The authors.
This is an Open Access article that uses a funding model which does not charge readers or their institutions for access and distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0) and the Budapest Open Access Initiative (http://www.budapestopenaccessinitiative.org/read), which permit unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited..

Abstract

This study examines the effect of audit firm tenure and audit firm size on financial reporting quality of listed insurance companies in Nigeria. Data was generated from the annual reports and accounts of thirteen sampled insurance companies during the period of 2008 to 2016. Financial reporting quality was the dependent variable of the study while the independent variables were audit firm tenure and audit firm size. Descriptive statistics, Pearson correlation and multiple regressions were utilized to analyze the study’s data. It was found that audit firm tenure has positive but insignificant effect on financial reporting quality while audit firm size has positive and significant effect on financial reporting quality of listed insurance companies in Nigeria. The control variable of audit committee independence has negative but insignificant effect on financial reporting quality and audit committee financial expertise has positive and insignificant effect on financial reporting quality. Therefore, the study recommends that the shareholders of insurance companies should not only emphasize on engaging the service and appointing the big audit firm that have assets but should consider experience, quality of previous in appointment and international presence which make them more likely to be independent, objective, and therefore, perform quality audit that supports high financial reporting quality.

Keywords: Audit Firm Tenure, Audit Firm Size, Financial Reporting, Insurance Companies


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