Determinants of Abnormal Audit Pricing among Listed Consumer Goods Companies in Nigeria

  • Johnson Kolawole OLOWOOKERE
  • Olatunji Oludayo OSUNWOLE
  • Ola Adewale ADEYEMI
  • Oyetayo Oyewale FOLAJIN


The study examined the determinants of abnormal audit pricing using a sample of selected listed firms from the consumer goods sector in Nigeria within the time period of 2010 and 2019. The population for the study comprises of all the twenty-three (23) consumer goods firms listed on the Nigerian Stock Exchange. Purposive sampling technique was used to select twelve (12) companies as sample for the study. The explanatory variables for the study were divided into firm specific variables such as firm size and profitability and governance structure such as independent directors and audit committee size. The random effect panel regression technique was employed for data analyses in line with the dictate of specification tests carried out. The study found a positive albeit statistically insignificant influence of firm size on abnormal audit fees in the consumer goods sector of listed firms in Nigeria. Firm profitability and audit committee size were found to exhibit insignificant negative influence on abnormal audit fees. However, board independence has a negative and significant influence on abnormal audit fees in the consumer goods sector of listed firms in Nigeria. The study thus concludes that abnormal audit pricing practice will be reduced by incorporation of more independent directors into the board of companies. It is recommended that stakeholders should ensure that more independent directors are included in the board in order to ensure better governance that will reduce the practice of abnormal audit pricing.Keywords: Abnormal audit fee, audit committee size, board independence, firm profitability, firm size