AUDIT REPORT CHARACTERISTICS AND FINANCIAL PERFORMANCE OF LISTED INTERNATIONAL STANDARD COMMERCIAL BANKS IN PORT-HARCOURT
Abstract
ABSTRACT
Audit report characteristics is a systematic process which involve 3rd parties (like company shareholders), the audit task focuses on a specific subject matter, evidence collected for the auditing task. This study investigated the relationship between audit report characteristics and financial performance of listed international standard commercial banks in Port-Harcourt. The study specifically investigated the relationship between professional opinion and return on assets and investigated the relationship between professional opinion and return on equity of listed international standard commercial banks in Port-Harcourt. The research design adopted in this study was ex-post facto research design. Secondary data of five (5) listed international standard commercial banks in Port-Harcourt for the period of ten (10) years (2012-2022) was used. Sample was obtained based on convenience sampling method. The statistical tools used were multiple regression analysis and Pearson’s product moment correlation aided by statistical package for social science (SPSS) version 22. The finding showed that audit report characteristics had a significant positive relationship with financial performance. On the other hand, professional opinion competence had significant positive relationship with return on assets of listed international standard commercial banks in Port-Harcourt. This states that an adequate increase in the effectiveness of an audit report characteristics will boost return on assets. The study recommended that professional opinion of independent auditors should be taken into consideration to ensure that audit report characteristics are made up of more effective audit personnel.
Keywords: Audit report characteristics, Financial performance, Professional opinion, Return on assets, and Return on equity
