EFFECT OF AUDIT QUALITY ON THE FINANCIAL PERFORMANCE OF LISTED AGRICULTURAL FIRMS IN NIGERIA

This study investigates the effect of audit quality on the financial performance of listed agricultural firms in Nigeria for the
period 2003-2022. An ex-post facto research design is employed. Four of the five (5) agricultural firms listed on the Nigerian
Stock Exchange as of December 31, 2022 were used. Audit quality is proxied by audit committee size, Audit independence,
audit committee activities, audit fee, external audit quality, and audit committee gender diversity, while financial performance
was measured by return on asset. Findings reveal a significant positive relationship between audit committee size (β = 0.0750)
and financial performance, measured by return on assets (ROA). Audit committee independence also showed a positive
association (β = 0.0518), while audit committee activity exerted a negative but insignificant effect (β = –0.0085). Furthermore,
external audit quality was found to have a negative and significant impact (β = –0.0969), whereas audit fees exhibited a positive
but insignificant relationship (β = 0.00061). Additionally, audit committee female diversity demonstrated a negative and
significant influence on financial performance (β = –0.1104). The study therefore recommends that listed agricultural firms
in Nigeria should ensure adequate audit committee representation. Firms should also review audit fees where necessary to
support higher audit quality