DETERMINANTS OF AUDITORS INDEPENDENCE: EVIDENCE FROM LISTEDDEPOSIT MONEY BANKS IN NIGERIA

Gusau Journal of Accounting and Finance

Koholga Ormin¹  Benedict Hirki Joseph¹  Terzungwe Nyor² 

[1] Adamawa State University, Mubi, Nigeria;Nigerian Defence Academy Kaduna, Nigeria;

关键词: Auditor?s Independence;    Audit Firm Size;    Auditor Rotation;    Non-Audit Services;    Audit Quality;    Financial Reporting Quality;   

DOI  :  

来源: DOAJ

【 摘 要 】

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.

【 授权许可】

Unknown