Abstract

<p>This paper investigates the effect of risk assessment procedures in audit reporting quality in listed deposit money banks in Nigeria. This is done from the fact that the banks in Nigeria despite their banking regulation, there is no consensus on the impact of risk assessment procedure in the banking sector. The population for the study comprises of 10 listed commercial banks in the Nigerian Exchange group. A simple random sampling technique was used, and data were obtained from the audited annual financial reports of the firms for a period of 2010 -2021. Panel least square (PLS) was used to analyze the collected data. The study found out that risk assessment has negative and significance influence in the audit reporting quality. The implication of the findings is that management of financial risk in the banking sector is deficient, and it has a negative consequence on the quality of the report released to the investors for the assessment of the company’s performance. The study therefore concludes that risk assessment procedures are a significant underlying factor that can negatively influence the quality of audit reporting in the banking sector</p>