TABLE OF CONTENT
Table of content
Certification
Dedication
Acknowledgement
Abstract
CHAPTER ONE
Introduction
Background of the study
Statement of research problem
Objectives of the study
Statement of research questions
Research hypothesis
Scope of the study
Significance of the study
Limitations of the study
Definition of terms
CHAPTER TWO
Conceptual framework
Concept of audit quality
Concept of audit remuneration
Concept of audit tenure
Auditor’s independence and audit quality
Audit committee activeness and audit quality
Theoretical framework
Audit pricing theory
Agency theory
Empirical framework
Gap in literature
CHAPTER THREE
Introduction
Research design
Population of the study
Sample size and sampling techniques
Data analysis technique
Model specification
CHAPTER FOUR
Data analysis and interpretation
Data analysis
Descriptive statistics
Correlation analysis
Pearson correlation matrix
Regression analysis
Regression result
CHAPTER FIVE
Summary conclusion and recommendations
Summary
Conclusion
Recommendation
ABSTRACT
In table 4.3 above, the study observed from the result the, R-square value of 0.5183 and R-sq(adj) 0.4816 this value reveals that all the independent variables jointly explain about 25% of the variation in the audit quality of the sampled companies. This means that about 51.83% of the audit quality of the selected companies can be attributable to auditor fee. Hence all the explanatory variables used for the study can cause about 51.83% changes in the audit quality. The F-statistics value of 9.2618 and its probability value of 0.0032 shows that the Ordinary Least Square regression model used are well specified and the model specification is statistically significant at 1% levels.
ABSTRACT
The study examined the effect of abnormal audit fees on audit quality in audit market in Nigeria. The aim was to determine whether abnormal audit fee (be it positive or negative) drives audit quality in Nigeria audit market. Hence, audit quality was regressed on abnormal audit fee alongside other explanatory variables like audit tenure, board independence, audit committee activeness, firm size and leverage. Using a probit binary regression technique on 350 firm observation data; obtained from companies quoted on the Nigeria stock exchange, it was observed that both positive and negative abnormal audit fees had insignificant positive impacts on audit quality. This shows that an abnormal audit fee does not matter to audit quality. Contrary to expectation, board independence and firm size had negative impacts on audit quality. However, only the impact of board independence was statistically significant. Of the auditor tenure, audit committee activeness and leverage that have positive impacts on audit quality. In conclusion, since the audit quality is invariant to abnormal audit fees, there may be no cause for alarm. However, the regulators of audit markets must keep a closer watch through effective monitoring of the audit fees chargeable by the audit firms to ensure that abnormal audit fees that could become deleterious to the audit quality do not arise.
