• S. O. KAJOLA Department of Accounting
  • W. A. SANYAOLU Department of Accounting
  • A. A. ADEYEMI Department of Accounting


Agency, Audit quality, Financial reporting, Discretionary accruals, Earnings management


Financial reports prepared by corporate managers communicate economic performance of an entity to various users of the reports. An important attribute of a financial report is its reliability. From the perspective of Agency theory, there is a possibility for corporate managers to be involved in manipulation of accounting earnings, with the intention of misleading users of reports. This study examined the influence of audit firm characteristics on quality of financial reports of eleven Nigerian deposit money banks for financial years, 2007 – 2018. The study employed Random effects generalised least squares as analytical tool. Regression results revealed a negative and significant relationship between audit firm characteristics (audit fees, joint audit) and earnings management. For quality financial reports to be achieved, it is recommended that relevant regulatory bodies in Nigeria should mandate management of deposit money banks and other financial institutions to engage services of bigger audit firms with requisite skills, professional experience and reputation. Joint audit should also be encouraged because of its added advantage of objective financial reporting over that of a single firm.



Author Biographies

S. O. KAJOLA, Department of Accounting

 Federal University of Agriculture, Abeokuta, Nigeria

W. A. SANYAOLU, Department of Accounting

Dominican University, Ibadan, Nigeria

A. A. ADEYEMI, Department of Accounting

Olabisi Onabanjo University, Ago-Iwoye, Nigeria


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