AUDITOR CHARACTERISTICS AND EARNINGS QUALITY OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA

This study examined the effect of auditor characteristics on the earnings quality of quoted deposit money banks in Nigeria. Specifically, the study examined the individual effects of audit firm size, audit fees, auditor tenure, and auditor industry specialization on the earnings quality of quoted deposit money banks in Nigeria. The research adopted the longitudinal research design using panel data from multiple firmsover a period. The population of this study comprised all the fourteen (14) commercial banks listed on the Nigeria Exchange Group (NXG) as at 1st January, 2023. It employed the census sampling approach where all fourteen listed commercial banks were considered for data collection. Data were extracted from the published annual financial statements of the commercial banks, covering a period of ten (10) years from 2014 to 2023. The study employed the multiple regression analysis with the aid of STATAVersion 16 to test the hypotheses. The results of the study showed that audit firm size and auditor fees have a significant effect on earning quality. On the other, auditor tenure and auditor industry specialization have insignificant effect on earnings quality of quoted deposit money banks in Nigeria. From the findings, the study concluded that the choice of an audit firm and the amount of audit fees will greatly determine the extent of the earnings quality of in the Nigeria banking sector. The study therefore recommended that banks should consider the track record and standard of the auditing firm more than just selecting larger audit firms. The hiring requirements should emphasize the auditor's background, knowledge of the sector, and history of ensuring accurate accounting practices.