Audit Quality as a Determinant of Earnings Performance in Selected Nigerian Oil and Gas Companies

Oluwakemi Adejuwon, Godwin Emmanuel Oyedokun and Mercy Aishatu Amedu
Additional contact information
Oluwakemi Adejuwon: Department of Management and Accounting, Lead City University, Ibadan, Nigeria
Godwin Emmanuel Oyedokun: Department of Management and Accounting, Lead City University, Ibadan, Nigeria
Mercy Aishatu Amedu: Federal Polytechnic, Idah, Nigeria

Lead City Journal of the Social Sciences (LCJSS), 2026, vol. 11, issue 2, 5-20

Abstract: Earnings volatility remains a critical challenge for oil and gas companies, largely due to fluctuations in global oil prices, geopolitical uncertainties, and rising exploration and production costs. As the global energy landscape shifts toward renewables and regulatory pressures to reduce carbon emissions intensify, the demand for accurate and transparent financial reporting has become more pronounced. Despite the importance of financial reporting in this sector, there is a notable gap in the literature regarding the empirical relationship between audit quality and corporate earnings, particularly within emerging markets. This study investigates the effect of audit quality on the earnings performance of selected oil and gas firms listed on the Nigerian Stock Exchange. Employing a descriptive research design, the study targeted directors and senior management staff of actively trading firms, selected purposively as key stakeholders involved in financial decision-making. The findings reveal a statistically significant and positive relationship between audit quality and earnings, with the audit process identified as the most influential component. The study concludes that enhancing audit quality particularly audit procedures can contribute substantially to earnings reliability. It recommends that firms place greater emphasis on rigorous audit practices to improve financial transparency and stakeholder confidence in the oil and gas industry.

Keywords: Earnings; Audit Quality; Audit process; oil and gas companies (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.lcu.edu.ng/index.php/lead-city-journal-of-the-social-sciences
https://www.lcu.edu.ng/index.php/lead-city-journal-of-the-social-sciences

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:lcjsss:023116

Access Statistics for this article

Lead City Journal of the Social Sciences (LCJSS) is currently edited by Omolara Campbell

More articles in Lead City Journal of the Social Sciences (LCJSS) from Lead City University
Bibliographic data for series maintained by Daniel Akanbi ().