INFLUENCE OF AUDIT FIRM’S SIZE AND QUALITY OF AUDIT OPINION IN RIVERS STATE, NIGERIA.

Abstract

The study investigated audit firm’s size and quality of audit report among audit firms in Rivers state. The research adopted correlational survey research design. The population for this study is sixty-three (63) audit firms (small and big) registered with corporate affairs commission in Rivers State. (Source: Research Data, 2019) and a sample size fifty-four (54). The study used questionnaire instrument, and data were analyzed in the Statistical Package for Social Sciences (SPSS) Version 22. The research hypotheses were tested using multiple regression analysis at a significance level of .05. The results of the findings were that there is a very strong positive linear relationship between big audit firm and scope of audit opinion in Rivers state. While there is no significant relationship between small audit firm and scope of audit opinion in Rivers state, on the other hand, there is a very strong positive linear relationship between big audit firm and reliability of audit opinion in Rivers state. And there is a significant relationship between small audit firm and reliability of audit opinion in Rivers state. This study recommends among others that big audit firms should maintain the scope of audit opinion quality in companies in Rivers state. Small audit firms should exercise integrity and professionalism in order to improve on the scope of audit quality of financial statements in Rivers state. Big audit firms should maintain the reliability of audit opinion quality in firms in Rivers state.