Influence of Auditing Standards on Economic Performance in Nigeria's Deposit Institutions

This study examined the effect of audit quality on the financial performance of selected Deposit Money Banks (DMBs) in Nigeria, covering the period 2017–2024. Specifically, the research analyzed how audit independence influences financial performance indicators, including Return on Assets (ROA), Earnings per Share (EPS), and Profit after Tax (PAT). Secondary data were obtained from annual reports of listed banks and analyzed using Robust Least Squares Regression. The findings revealed that audit independence has a negative and statistically significant effect on ROA, indicating that increased independence may impose strict controls that reduce short-term profitability. Conversely, audit independence exhibited a positive but statistically insignificant effect on EPS and PAT, suggesting minimal contribution to shareholder value and post-tax profitability. It recommends strengthening audit governance frameworks, improving communication between auditors and management, and enhancing professional competence through continuous training. The study contributes to existing literature by providing recent empirical evidence on audit independence and public confidence within Nigeria’s banking sector and by offering methodological insights using robust regression techniques.