Influence of audit report on the growth of financial institutions in Nigeria

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Influence of audit report on the growth of financials institutions in Nigeria A study of Access Bank Uyo

ABSTRACT

The study investigates Influence of audit report on the growth of financials institutions in nigeria a case study of access bank aka road uyo, the  main objective of this study is to determine the effect of audit firm characteristics on financial performance of money deposit banks in Nigeria.

Specifically the study shall determine the effect of audit quality, audit fee, and audit report lag on return on assets of Nigerian banks. Next, ascertain the effect of audit quality, audit fee, and audit report lag on earnings per share of Nigerian banks. And finally, examine the effect of audit quality, audit fee, and audit report lag on net profit margin of Nigerian banks. The study adopted the ex post facto and correlational research design.

The study population comprised all money deposit banks in existence as at 2015 financial year end. The study finds that audit quality has a significant effect on return on assets of Nigerian banks; Audit fee and audit report lag had no significant effect on return on assets, earnings per share and net profit margin of Nigerian banks.

The study therefore recommends mandatory rotation of auditors as a significant factor in safeguarding auditor independence and improving the quality of audit; and the establishment of corporate governance principles that address issues relating to board independence and committee sizes to guide activities in the banking sector.