AUDIT QUALITY AND TAX AGGRESSIVENESS IN LISTED TELECOMMUNICATIONS AND OIL AND GAS SECTORS IN NIGERIA

Abstract

This study investigates the effect of audit quality on tax aggressiveness among listed telecommunication and oil and gas firms in Nigeria for the period 2019 to 2023. Audit quality was assessed through three proxies: audit firm size, audit fees, and audit tenure while Tax aggressiveness was measured using the Cash Effective Tax Rate (CETR). The population of the study was fourteen (14) listed telecommunication and oil and gas firms in Nigeria but after data filtering thirteen (13) firms were used. Analysis was carried out using descriptive and inferential statistics. Descriptive and correlation analyses were conducted prior to regression testing. The results indicate a statistically significant negative relationship between audit firm size and tax aggressiveness, while audit fees and audit tenure showed no significant effects. Based on these findings, the study recommends that regulators and corporate boards encourage the engagement of large, reputable audit firms to reduce tax aggressiveness. In addition, it proposes the development of audit fee benchmarking policies tied to audit performance.