Audit Quality and Cash – Based Earnings Management of Quoted Companies in Nigeria
 /  Audit Quality and Cash – Based Earnings Management of Quoted Companies in Nigeria

Audit Quality and Cash – Based Earnings Management of Quoted Companies in Nigeria

Augustine Oke Okolie, Famous O. I. Izedonmi and Augustine O. Enofe
Abstract
This study examines the impact and relationship between audit quality and cash – based
earnings management of companies in Nigeria. Using archival data based on a sample of
342 companies – year observations from the NSE and applying some commonly applied
audit quality measures for purpose of robustness, a massive and all-inclusive multivariate
analyses was conducted. The result showed that audit quality exerts significant negative
relationship with cash – based earnings management of quoted companies in Nigeria. The
study recommends that Professional Accountancy Bodies, the Financial Reporting
Council of Nigeria and the Nigerian National Assembly should issue authoritative code
for audit quality; companies should improve their earnings quality only through sales
growth, cost control and cost reduction strategies; companies in Nigeria should present
distinct statements of earnings quality while auditors should issue Integrated Audit
Quality Assurance Report based on earnings quality assessment, supported by current best
practices, statutorily backed by earnings monitoring of companies in Nigeria.

Journal Article
PDF, 295.5 KB
Creative Commons LicenseCreative Commons license
Accounting, Banking and Finance
Audit
Audit Quality, Earnings, Earnings Management, Earnings Quality, Cash – Flow
Christian Bassey
18th April, 2018
18th April, 2018
http://oer.mciu.edu.ng/wp-content/uploads/2015/04/102izedonmi.pdf


Staff Profile Download

MICHAEL AND CECILIA IBRU UNIVERSITY

Ibru Village
Agbarha – Otor
Ughelli North
Delta State
Nigeria

Admissions

CONNECT WITH US

Registry