The study examined the effect of external audit and earnings reinstatement of quoted manufacturing companies in Nigeria. The specific objectives of this study were to critically analyse the relationship between external audit and earning restatement in quoted manufacturing companies in Nigeria. Quasi experimental research design was adopted for this study. The Pearson’s product moment correlation coefficient (PPMC) statistical tool, SPSS was used to test the hypotheses formulated in this study. Results indicated that there is significant relationship between external audit and earnings restatement. There is significant relationship between external audit and discretionary accruals. The study concluded that external audit is a fundamental means of checking and scrutinizing financial statements in order to prevent the provision of false economic events and activities of business that would cause accounting scandals. The study recommended that the management of manufacturing companies in Nigeria should use external auditors to independently check their books and records and prevent falsified accounting reports that could lead to accounting scandals.

Authors: J. Amadi, T.K. Olaniyi, P. Olatubosun

Published in: World Congress on Sustainable Technologies (WCST-2021)

• Date of Conference: 7-9 December 2021
• DOI: 10.20533/WCST.2021.0018
• ISBN: 978-1-913572-41-9
• Conference Location: Virtual (London, UK)