Audit Qulity and Earnings Management of Listed Deposit Money Banks in Nigeria

This study determined the effect of audit quality on earnings management of listed deposit money banks in Nigeria using auditor independence and audit firm size on earnings management of listed deposit money banks in Nigeria spanning from 2012 to 2024. Ex Post Facto research design was used for the study. Data were extracted from annual audited reports and accounts of the sampled banks. The analysis showed that the P-value of the test was 0.933 higher than 0.05 (5%). this study upholds that audit independent has a positive but insignificant effect on earning management of deposit money banks in Nigeria. Also the hypothesis two revealed that the P-value of the test was 0.0362 less than 0.05 (5%); this study upholds that audit independent has a positive and significant effect on earning management of deposit money banks in Nigeria. This implies that audit quality can detect and prevent earnings manipulation as it identifying weakness that could lead to manipulation. This study therefore concludes that audit quality has a significant influence on earnings management of corporate entity such as in the banking system. Based on the study outcomes, the study recommended among others that there is need to strengthen audit committees by ensuring they are truly independent and have financial expertise, and ensure whistleblower protection to safeguard those who report audit issues or earnings manipulation