Journal of Management and Science
Vol. 12 No. 2 (2022): Vol 12, Iss 2, Year 2022
Articles

Effect of audit client importance on earnings management of nigerian listed consumer goods firms

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  • Azende Terungwa,
  • Iorpev Luper,
  • Ganyam Amos Iorcher
Azende Terungwa
Department of Accounting Department, Benue State University Makurdi.
Iorpev Luper
Department of Accounting Department, Benue State University Makurdi.
Ganyam Amos Iorcher
Department of Accounting , Benue State University Makurdi.
DOI: https://doi.org/10.26524/jms.12.39
Published June 30, 2022
Keywords
  • Audit, audit client importance, earnings management.
How to Cite
Azende Terungwa, Iorpev Luper, & Ganyam Amos Iorcher. (2022). Effect of audit client importance on earnings management of nigerian listed consumer goods firms. Journal of Management and Science, 12(2), 114-119. https://doi.org/10.26524/jms.12.39

Abstract

The primary focus of this study was to examine the influence of audit client importance on earnings management of Nigerian listed consumer goods firms. The study adopted a descriptive research design. From 2012 to 2019, data were collected from 13 consumer goods firms listed on the Nigerian Exchange Group. Discretionary accrual was used to estimate earnings management.Descriptive statistics and random effects regression were used to analyse the data. The findings indicated that audit client importance (β=-0.1872) has a significant effect on the earnings management of Nigerian listed consumer goods firms. The study concluded that earnings management practices of Nigerian listed consumer goods firms are curtailed when the firms are of important clients to their auditors. The recommendation was that management of firms should enhance approaches that will improve their performance in terms of sales to remain important clients to their auditors.

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