This study examined the effect of audit quality on value relevance of commercial banks’
financial report in Nigeria. The study employed ex post facto research design. Data for
analysis was gotten from the published financial reports of 13 listed commercial banks
spanning a period of 5 years (2017 to 2021). The Ordinary Least Square (OLS) method using
multiple regression model was used to analyze the data generated with the aid of Statistical
Package for the Social Sciences (SPSS Version 20). Findings from the study revealed that Audit
fee has a positive significant effect on value relevance of reported earnings per share of the
listed commercial banks in Nigeria. Further findings revealed that Audit firm size has a
positive insignificant effect on value relevance of reported earnings per share of the listed
commercial banks in Nigeria and finally, it was revealed that Audit tenure has a positive
insignificant effect on value relevance of reported earnings per share of the listed
commercial banks in Nigeria. Based on the findings the study recommends that, commercial
banks should endevour to balance the costs of audit by paying prudent fee for audit services
such that it will not impede or influence the external auditors judgement on the reported
financial figures in order to minimize the risk of reduced independence. Such practices if
not considered that lead to audit risk of poor judgement that might distort the value
relevance of financial reports of the banks thus; lead to a situation where investors base
there judgement on reported earnings figures that are inappropriate.Also, commercial banks
should not maintain the services of a particular audit firm over a long period of time as this
impedes the quality of audit service offered as a result of the familiarity is developed
between the audit firm and client overtime.
Keywords: Audit Quality, Audit Size, Audit Fee, Audit Tenure, Value Relevance and Deposit
Money Banks.

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