ACCOUNTING INFORMATION SYSTEM AND AUDIT QUALITY IN THE NIGERIA BANKING INDUSTRY

This study examined the effect of Accounting Information System (AIS) on audit quality among selected commercial banks listed on the Nigerian Exchange Group (NGX). The study covered eleven (11) listed banks for a five-year period (2020–2024), yielding fifty-five (55) balanced panel observations. Secondary data were obtained from the audited annual reports of the sampled banks, while analysis was conducted using descriptive statistics, correlation analysis, and the Panel Least Squares (PLS) regression technique with EViews 13. The dependent variable was Information and Communication Technology Expenditure (ICTEXP), used as a proxy for AIS investment, while Audit Quality Index (AQI), Profit After Tax (PAT), and Return on Assets (ROA) served as explanatory variables. The empirical results revealed that ICT expenditure had a negative but statistically insignificant relationship with audit quality (β = –0.0021, p = 0.6398). Similarly, Profit After Tax (PAT) exhibited a negative and insignificant effect (β = –0.0010, p = 0.3667). In contrast, Return on Assets (ROA) showed a positive but weakly significant relationship with ICT expenditure (β = 54.7659, p = 0.0584). The coefficient of determination (R² = 0.106) indicated that approximately 10.6% of the variation in audit quality was explained by the model. The study concludes that ICT expenditure, as a measure of AIS, does not significantly improve audit quality in Nigerian banks unless properly integrated into the audit process and supported by auditor competence.
Accounting Information System and audit quality in the Nigeria banking industry It is therefore recommended that banks align ICT investments with audit objectives, enhance auditor digital literacy, and adopt automated audit tools to strengthen transparency and reliability in financial reporting. The findings contribute to existing literature by emphasizing that the effectiveness of AIS in improving audit quality depends more on implementation strategy and human capital than on the magnitude of technology expenditure.