DETERMINANTS OF AUDITORS INDEPENDENCE: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA
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 i...
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| Format: | Article |
| Language: | English |
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Department of Accounting and Finance, Federal University Gusau
2021-04-01
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| Series: | Gusau Journal of Accounting and Finance |
| Subjects: | |
| Online Access: | https://journals.gujaf.com.ng/index.php/gujaf/article/view/63 |
| _version_ | 1818235078825738240 |
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| author | Benedict Hirki Joseph Terzungwe Nyor Koholga Ormin |
| author_facet | Benedict Hirki Joseph Terzungwe Nyor Koholga Ormin |
| author_sort | Benedict Hirki Joseph |
| collection | DOAJ |
| description |
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.
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| first_indexed | 2024-12-12T11:48:15Z |
| format | Article |
| id | doaj.art-c4be9fbf98464cbaa75b96a7f583d873 |
| institution | Directory Open Access Journal |
| issn | 2756-665X |
| language | English |
| last_indexed | 2024-12-12T11:48:15Z |
| publishDate | 2021-04-01 |
| publisher | Department of Accounting and Finance, Federal University Gusau |
| record_format | Article |
| series | Gusau Journal of Accounting and Finance |
| spelling | doaj.art-c4be9fbf98464cbaa75b96a7f583d8732022-12-22T00:25:23ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2021-04-0122DETERMINANTS OF AUDITORS INDEPENDENCE: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIABenedict Hirki Joseph0Terzungwe Nyor1Koholga Ormin2Adamawa State University, Mubi, NigeriaNigerian Defence Academy Kaduna, NigeriaAdamawa State University, Mubi, Nigeria 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. https://journals.gujaf.com.ng/index.php/gujaf/article/view/63Auditor?s IndependenceAudit Firm SizeAuditor RotationNon-Audit ServicesAudit QualityFinancial Reporting Quality |
| spellingShingle | Benedict Hirki Joseph Terzungwe Nyor Koholga Ormin DETERMINANTS OF AUDITORS INDEPENDENCE: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA Gusau Journal of Accounting and Finance Auditor?s Independence Audit Firm Size Auditor Rotation Non-Audit Services Audit Quality Financial Reporting Quality |
| title | DETERMINANTS OF AUDITORS INDEPENDENCE: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA |
| title_full | DETERMINANTS OF AUDITORS INDEPENDENCE: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA |
| title_fullStr | DETERMINANTS OF AUDITORS INDEPENDENCE: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA |
| title_full_unstemmed | DETERMINANTS OF AUDITORS INDEPENDENCE: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA |
| title_short | DETERMINANTS OF AUDITORS INDEPENDENCE: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA |
| title_sort | determinants of auditors independence evidence from listed deposit money banks in nigeria |
| topic | Auditor?s Independence Audit Firm Size Auditor Rotation Non-Audit Services Audit Quality Financial Reporting Quality |
| url | https://journals.gujaf.com.ng/index.php/gujaf/article/view/63 |
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