DETERMINANTS OF AUDITORS INDEPENDENCE: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA
Journal Title: Gusau Journal of Accounting and Finance - Year 2021, Vol 2, Issue 2
Abstract
The recent cases of bank failures witnessed in Nigeria despite unqualified audit reports have raised questions about banks auditor’s independence. Given the significance of auditor’s independence in enhancing corporate financial reporting quality, this paper examined the determinants of auditor’s independence of 13 listed deposit money banks in Nigeria from 2006 to 2018. The paper specifically determined the combined influence of audit firm size, auditor’s rotation and non-audit services on auditor’s independence. The study data were generated from the annual accounts and reports of the 13 sampled banks and audit firms during the period. The paper utilized descriptive statistics and ordinary least square regression analysis to analyse the data and test the hypotheses after diagnostic tests were conducted. The results revealed that audit firm size and auditor rotation are determinants of auditor’s independence while non-audit services do not. Based on the findings, it was recommended, among others, that professional accountancy bodies should strengthen legislation through the imposition of stricter penalties and monitoring to ensure that auditors maintain independence while performing the statutory audit function.
Authors and Affiliations
Benedict Hirki Joseph, Terzungwe Nyor, Koholga Ormin
Keywords
Related Articles
- EP ID EP709164
- DOI -
- Views 142
- Downloads 0
EFFECT OF BOARD CHARACTERISTICS ON SOCIAL AND ENVIRONMENTAL DISCLOSURE OF LISTED ENVIRONMENTALLY SENSITIVE FIRMS IN NIGERIA
Social and Environmental Disclosure has been at its adoption phase in Nigeria despite the trend of disclosure practices by firms around the world. As a step towards addressing this shortcoming, the paper examined Board...
INCREMENTAL VALUE RELEVANCE OF IAS 41 IMPLEMENTATION AMONG OF LISTED AGRICULTURAL FIRMS IN NIGERIA
There has been a concern over absence of empirical works on value relevance of adoption of international accounting standard on agriculture. This paper examines the incremental value relevance of IAS 41 adoption on the...
INHERITANCE MANAGEMENT AND ACCOUNTABILITY: A CASE STUDY OF Z AND S INHERITANCE COMMITTEE IN LAGOS OF NIGERIA
Although the unprecedented level of unclaimed inheritance attracted the attention of legal and religious scholars across Muslim majority countries, concern over inheritance, however, took a global dimension when Musawah,...
FIRM SPECIFIC ATTRIBUTES AND FINANCIAL PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA
The financial performance of Nigerian insurance firms has been seen as weak and poor. Owing to the weakness of the insurance sector, the study therefore examined the effect of insurance specific attributes on financial...
AUDIT QUALITY, GOVERNANCE MECHANISMS AND EARNINGS MANAGEMENT OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA
Corporate failures across the globe have become an issue of concern for stakeholders and regulators. Financial reporting scandals that occurred in oceanic bank, intercontinental bank and the recent bank crises of Skye...