This study compare financial reporting quality of Big 4 audited and non-Big 4 audited firms in Nigeria. Specifically, compares the abnormal operating cash flow quality, and abnormal production expenditure quality, and unexpected core earnings of Big 4 and non-Big 4 audited firms. The study adopts the ex-post facto research design; as the goal is not manipulate any variable but rather establish comparative difference. The population comprised of quoted manufacturing firms and the sample restricted to a purposive sample of 62 firms from 6 sectors listed on the Nigerian Stock Exchange (NSE). The study utilized secondary data retrieved from annual financial statements of the sampled firms. The data were analyzed using several techniques such as multiple regression, and correlation. The results showed a statistically significant difference in abnormal operating cash flow quality of Big 4 and non-Big 4 audited firms; a statistically significant difference in abnormal production expenditure quality of Big 4 and non-Big 4 audited firms. Based on this, the study recommends that shareholders during Annual General Meeting (AGM) may also seek the adoption of joint auditors to strengthen audit quality and cushion against shocks from manipulative practices of managers or the lack of independence from continued engagement of particular audit firms.
Abnormal operating cash flow quality, Abnormal production expenditure quality, and unexpected core earnings of Big 4 and non-Big 4 audited firms
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