Abstract:
Over the years, incremental attention has been paid to the quality of corporate governance by regulatory authorities as there were series of audit failures among corporate companies. Lack of corporate governance codes in firms have been responsible for the collapse of many business organizations through abuse of power and so on. The general objective of the study is to evaluate the effect of corporate governance on audit quality in consumer service sector in Nigeria. The study was carried out using ex-post factor research design which is based on historical data i.e. secondary data generated from annual report of listed companies under the Nigeria stock exchange. Annual data spanning the period 2011-2018 were examined using logistics regression model to test the relationship between the dependent and independent variables. The empirical results revealed that directors’ remuneration has a positive and significant relationship with auditors’ fee with p-value of (0.000). Similarly, auditors’ committee size has a positive and significant relationship with auditors’ fee with a p-value of (0.024). However, the study revealed that there is no significant relationship between board size and auditors fee with a p-value of (0.718). The study recommends amongst others; that the audit quality should be maintained and improved upon.
