Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria

Jerry Kwarbai; Emmanuel Oyeku

doi:doi:10.11648/j.hss.20251304.15

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Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria

Jerry Kwarbai

, Emmanuel Oyeku^*

Published in Humanities and Social Sciences (Volume 13, Issue 4)

Received: 29 May 2025 Accepted: 16 June 2025 Published: 14 July 2025

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Abstract

As audit firms expand into non-audit services (NAS), concerns about compromised audit quality have intensified - especially in emerging markets like Nigeria, where regulatory frameworks are still maturing. While NAS can boost efficiency and decision-making, they raise critical issues regarding auditor independence. This study investigates the impact of NAS on audit quality among listed industrial goods manufacturing companies in Nigeria. A quantitative, survey-based approach was adopted, targeting 181 accountants and auditors across 13 NGX-listed firms. Using stratified, purposive, and convenience sampling, 138 respondents were selected via Slovin’s formula. Data were collected through a validated and reliable questionnaire (Cronbach’s alpha > 0.7) and analyzed using descriptive and multiple regression techniques at a 5% significance level. Findings reveal that NAS significantly affect auditor experience (Adjusted R² = 0.222; F = 6.283; p < 0.05) and auditor reputation (Adjusted R² = 0.134; F = 10.769; p < 0.05), both proxies for audit quality. The study concludes that NAS have both positive and negative implications for audit quality. These results highlight the need for clearer regulatory boundaries, stronger oversight, and improved governance to manage NAS in Nigeria’s industrial goods sector. The study provides valuable empirical evidence for regulators, audit committees, and policymakers seeking to safeguard audit quality without stifling professional service innovation.

Published in	Humanities and Social Sciences (Volume 13, Issue 4)
DOI	10.11648/j.hss.20251304.15
Page(s)	318-329
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

Non-audit Services, Audit Quality, Audit Firm Reputation, Auditor Experience

References

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Kwarbai, J., Oyeku, E. (2025). Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria. Humanities and Social Sciences, 13(4), 318-329. https://doi.org/10.11648/j.hss.20251304.15

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Kwarbai, J.; Oyeku, E. Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria. Humanit. Soc. Sci. 2025, 13(4), 318-329. doi: 10.11648/j.hss.20251304.15

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Kwarbai J, Oyeku E. Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria. Humanit Soc Sci. 2025;13(4):318-329. doi: 10.11648/j.hss.20251304.15

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@article{10.11648/j.hss.20251304.15,
  author = {Jerry Kwarbai and Emmanuel Oyeku},
  title = {Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria
},
  journal = {Humanities and Social Sciences},
  volume = {13},
  number = {4},
  pages = {318-329},
  doi = {10.11648/j.hss.20251304.15},
  url = {https://doi.org/10.11648/j.hss.20251304.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hss.20251304.15},
  abstract = {As audit firms expand into non-audit services (NAS), concerns about compromised audit quality have intensified - especially in emerging markets like Nigeria, where regulatory frameworks are still maturing. While NAS can boost efficiency and decision-making, they raise critical issues regarding auditor independence. This study investigates the impact of NAS on audit quality among listed industrial goods manufacturing companies in Nigeria. A quantitative, survey-based approach was adopted, targeting 181 accountants and auditors across 13 NGX-listed firms. Using stratified, purposive, and convenience sampling, 138 respondents were selected via Slovin’s formula. Data were collected through a validated and reliable questionnaire (Cronbach’s alpha > 0.7) and analyzed using descriptive and multiple regression techniques at a 5% significance level. Findings reveal that NAS significantly affect auditor experience (Adjusted R² = 0.222; F = 6.283; p < 0.05) and auditor reputation (Adjusted R² = 0.134; F = 10.769; p < 0.05), both proxies for audit quality. The study concludes that NAS have both positive and negative implications for audit quality. These results highlight the need for clearer regulatory boundaries, stronger oversight, and improved governance to manage NAS in Nigeria’s industrial goods sector. The study provides valuable empirical evidence for regulators, audit committees, and policymakers seeking to safeguard audit quality without stifling professional service innovation.},
 year = {2025}
}

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TY  - JOUR
T1  - Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria

AU  - Jerry Kwarbai
AU  - Emmanuel Oyeku
Y1  - 2025/07/14
PY  - 2025
N1  - https://doi.org/10.11648/j.hss.20251304.15
DO  - 10.11648/j.hss.20251304.15
T2  - Humanities and Social Sciences
JF  - Humanities and Social Sciences
JO  - Humanities and Social Sciences
SP  - 318
EP  - 329
PB  - Science Publishing Group
SN  - 2330-8184
UR  - https://doi.org/10.11648/j.hss.20251304.15
AB  - As audit firms expand into non-audit services (NAS), concerns about compromised audit quality have intensified - especially in emerging markets like Nigeria, where regulatory frameworks are still maturing. While NAS can boost efficiency and decision-making, they raise critical issues regarding auditor independence. This study investigates the impact of NAS on audit quality among listed industrial goods manufacturing companies in Nigeria. A quantitative, survey-based approach was adopted, targeting 181 accountants and auditors across 13 NGX-listed firms. Using stratified, purposive, and convenience sampling, 138 respondents were selected via Slovin’s formula. Data were collected through a validated and reliable questionnaire (Cronbach’s alpha > 0.7) and analyzed using descriptive and multiple regression techniques at a 5% significance level. Findings reveal that NAS significantly affect auditor experience (Adjusted R² = 0.222; F = 6.283; p < 0.05) and auditor reputation (Adjusted R² = 0.134; F = 10.769; p < 0.05), both proxies for audit quality. The study concludes that NAS have both positive and negative implications for audit quality. These results highlight the need for clearer regulatory boundaries, stronger oversight, and improved governance to manage NAS in Nigeria’s industrial goods sector. The study provides valuable empirical evidence for regulators, audit committees, and policymakers seeking to safeguard audit quality without stifling professional service innovation.
VL  - 13
IS  - 4
ER  -

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Author Information

Jerry Kwarbai

Department of Accounting, Babcock University, Ilishan-Remo, Nigeria

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http://orcid.org/0000-0001-9390-9851
Emmanuel Oyeku

Department of Accounting, Babcock University, Ilishan-Remo, Nigeria

Contact Email

http://orcid.org/0009-0007-1768-441X

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Kwarbai, J., Oyeku, E. (2025). Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria. Humanities and Social Sciences, 13(4), 318-329. https://doi.org/10.11648/j.hss.20251304.15

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Kwarbai, J.; Oyeku, E. Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria. Humanit. Soc. Sci. 2025, 13(4), 318-329. doi: 10.11648/j.hss.20251304.15

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Kwarbai J, Oyeku E. Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria. Humanit Soc Sci. 2025;13(4):318-329. doi: 10.11648/j.hss.20251304.15

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@article{10.11648/j.hss.20251304.15,
  author = {Jerry Kwarbai and Emmanuel Oyeku},
  title = {Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria
},
  journal = {Humanities and Social Sciences},
  volume = {13},
  number = {4},
  pages = {318-329},
  doi = {10.11648/j.hss.20251304.15},
  url = {https://doi.org/10.11648/j.hss.20251304.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hss.20251304.15},
  abstract = {As audit firms expand into non-audit services (NAS), concerns about compromised audit quality have intensified - especially in emerging markets like Nigeria, where regulatory frameworks are still maturing. While NAS can boost efficiency and decision-making, they raise critical issues regarding auditor independence. This study investigates the impact of NAS on audit quality among listed industrial goods manufacturing companies in Nigeria. A quantitative, survey-based approach was adopted, targeting 181 accountants and auditors across 13 NGX-listed firms. Using stratified, purposive, and convenience sampling, 138 respondents were selected via Slovin’s formula. Data were collected through a validated and reliable questionnaire (Cronbach’s alpha > 0.7) and analyzed using descriptive and multiple regression techniques at a 5% significance level. Findings reveal that NAS significantly affect auditor experience (Adjusted R² = 0.222; F = 6.283; p < 0.05) and auditor reputation (Adjusted R² = 0.134; F = 10.769; p < 0.05), both proxies for audit quality. The study concludes that NAS have both positive and negative implications for audit quality. These results highlight the need for clearer regulatory boundaries, stronger oversight, and improved governance to manage NAS in Nigeria’s industrial goods sector. The study provides valuable empirical evidence for regulators, audit committees, and policymakers seeking to safeguard audit quality without stifling professional service innovation.},
 year = {2025}
}

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TY  - JOUR
T1  - Non-audit Services and Audit Quality of Listed Industrial Goods Manufacturing Companies in Nigeria

AU  - Jerry Kwarbai
AU  - Emmanuel Oyeku
Y1  - 2025/07/14
PY  - 2025
N1  - https://doi.org/10.11648/j.hss.20251304.15
DO  - 10.11648/j.hss.20251304.15
T2  - Humanities and Social Sciences
JF  - Humanities and Social Sciences
JO  - Humanities and Social Sciences
SP  - 318
EP  - 329
PB  - Science Publishing Group
SN  - 2330-8184
UR  - https://doi.org/10.11648/j.hss.20251304.15
AB  - As audit firms expand into non-audit services (NAS), concerns about compromised audit quality have intensified - especially in emerging markets like Nigeria, where regulatory frameworks are still maturing. While NAS can boost efficiency and decision-making, they raise critical issues regarding auditor independence. This study investigates the impact of NAS on audit quality among listed industrial goods manufacturing companies in Nigeria. A quantitative, survey-based approach was adopted, targeting 181 accountants and auditors across 13 NGX-listed firms. Using stratified, purposive, and convenience sampling, 138 respondents were selected via Slovin’s formula. Data were collected through a validated and reliable questionnaire (Cronbach’s alpha > 0.7) and analyzed using descriptive and multiple regression techniques at a 5% significance level. Findings reveal that NAS significantly affect auditor experience (Adjusted R² = 0.222; F = 6.283; p < 0.05) and auditor reputation (Adjusted R² = 0.134; F = 10.769; p < 0.05), both proxies for audit quality. The study concludes that NAS have both positive and negative implications for audit quality. These results highlight the need for clearer regulatory boundaries, stronger oversight, and improved governance to manage NAS in Nigeria’s industrial goods sector. The study provides valuable empirical evidence for regulators, audit committees, and policymakers seeking to safeguard audit quality without stifling professional service innovation.
VL  - 13
IS  - 4
ER  -

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