Effect of Management Audit on Quality of Audit Report of Listed Consumer Goods Firms in Nigeria

Abstract This study empirically examined the effect of management audit on quality of audit reports, with a specific focus on listed consumer goods firms in Nigeria between 2020 and 2024. The study had three main objectives: to determine the effect of firm policies on audit quality; to examine the impact of organizational structure on audit quality; and to assess the influence of firm profitability on audit quality. The dependent variable, audit quality, was proxied by audit firm size while the independent variables firm policies, organizational structure, and profitability served as proxies for management audit. A sample of ten (10) consumer goods companies quoted on the Nigerian Exchange Group (NGX) was selected using purposive sampling. The study adopted a quantitative approach and relied solely on secondary data extracted from the audited financial statements of the selected firms. The data were analyzed using panel regression techniques to assess the relationships between the variables. The findings revealed that firm policies and organizational structure had negative and statistically insignificant effects on audit quality. However, firm profitability showed a positive and significant effect on audit quality. This suggests that more profitable firms tend to attract higher-quality audit services. Based on these findings, the study recommends: (1) periodic review and reform of internal policies and structures to support audit quality; (2) increased management attention to profitability as a driver of audit quality; and (3) prioritizing investment decisions and market strategies that sustain firm growth and attract reputable audit firms.