Residual Audit Fees and Earnings Informativeness of Quoted Manufacturing Firms in Nigeria
- Post by: airjournal
- June 3, 2021
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The study examined the residual audit fees and earnings informativeness of quoted manufacturing firms in Nigeria. The study used the ex-post facto research design to determine cause-effect relationship between the independent and dependent variables with a view to establishing a causal link between them. The sample for the study comprises twenty-one consumer goods firms selected from manufacturing firms listed on the Nigerian Stock Exchange (NSE) as at 31st December, 2019. The study relied on secondary data obtained from annual financial reports and accounts of the companies included in the sample. The study employed descriptive and inferential statistics in analyzing the data for the study. The findings from the study revealed among others that there is a non-significant negative effect of abnormal audit fee on magnitude of discretionary accruals of manufacturing firms. The study recommends that external audit firms should employ appropriate pricing mechanisms/tools to avoid over-charging or under-charging clients.
Keywords: Residual Audit, Fees, Earnings, Informativeness, Manufacturing, Firms, Nigeria
1Odum, Augustine Nwekemezie, Ph.D, 2Odum, Chinwe Gloria, Ph.D and 3Chukwu, Emmanuel Emeka