June 2025 Edition

INFLUENCE OF AUDITING STANDARDS ON FINANCIAL PERFORMANCE (A CASE STUDY OF SELECTED THREE QUOTED MANUFACTURING COMPANIES IN NIGERIA)

1Ojoawo Oyedotun Ifeoluwa Ph.D, Adeleke Adebowale Babawale

Abstract

This study examined auditing standards on financial performance of quoted manufacturing firms in Nigeria during the period 2003 to 2020. The aim is to ascertain the relationship between audit independence (AUIND) and financial performance of selected three quoted manufacturing companies; to analyse the relationship between audit committee financial expertise and financial performance of the selected three quoted manufacturing companies in Nigeria. The researcher used Unilever Nigeria Plc, Beta Glass Plc, and Meyer Plc. Earning Per Share (EPS) as the dependent variable, and the independent variables were auditor independence, audit firm size, audit committee membership, and audit committee financial knowledge. The researcher used time-series data acquired from the annual reports and financial statements of the analyzed companies. E-views 9 statistical software was used to assess for normality, serial correlation, and heteroskedasticity. The p-value for audit committee (AUCMT) and audit committee financial expertise (AUCFE) is less than 5%. Beta Glass Plc and Meyer Plc's p-value for the Audit Committee (AUCMT), audit independence (AUIND), and audit committee financial expertise (AUCFE) are less than 5%. These selected manufacturing companies under scrutiny have global p-values below 5%.the study concluded that audit independence and standard influence Nigerian manufacturing enterprises, there is however a need to allow appropriate remuneration for audit committee members, and the determination of appropriate membership tenure to foster their commitment.

Keywords

Auditing Standard, Financial Performance, Manufacturing Companies.

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