Perception on Audit Expectation Gap on the Statutory Duty of Nigerian Auditor (Published)
The accountancy profession is a unique one and should be concerned with the provision of true and definitive financial information that can assist all the stakeholders in taking appropriate decisions after meeting auditor’s requirements. Undoubtedly, an expectation gap always exists between the stakeholders (as they appear not knowing the exact the duty of a statutory auditor) and auditor (whose duty is spelt out in the statute irrespective of the high demand by the stakeholders). The first objective of this study is to determine whether or not the stakeholders / users of financial statements are conversant with the duty of an auditor under the Nigerian law. The second objective is to find out through the stakeholders’ perceptions whether the audit expectation gap can influence them in taking decisions. Questionnaire is used as the instrument for collecting the required data. Descriptive statistic and simple regression (after conversion) are used in analyzing the data. The study reveals that majority of the stakeholders are not familiar with the statutory duty of an auditor and that the audit expectation gap is less significant in taking their decisions. Other finding is that the auditors’ report is not detailed enough with a view to disclosing any gap that may arise. The recommendations of the study are that the management and directors of companies should adequately educate the stakeholders on the statutory duty of auditor and the report of the auditor should be detailed enough in order to meet the needs of shareholders especially on any gap that may arise.
Keywords: Audit Expectation Gap, Auditor, Nigeria, Statutory Duty
Mandatory Auditor Rotation and Audit Quality in the Nigeria Financial Sector (Published)
The objective of this study was to provide evidence on the existence of a relationship between mandatory auditor rotation and audit quality in Nigeria firms. Ordinary least square (OLS) econometric technique was use to analyze the relationship between mandatory auditor rotation and audit quality. Findings reveal that there is a significant relationship between mandatory auditor rotation and audit quality. The other explanatory variables (Auditor type and Auditor Independence) considered alongside audit quality were found to be related to audit quality aside from Auditor Independence which shows a positive effect. The recommendation is that firms should make sure that they adopt mandatory auditor rotation and also seek the partnership of one of the big four (4) auditors if they want a quality audit report.
Keywords: Auditor, Mandatory, Rotation and Audit Quality
Auditing Standards and Auditors Performance: The Nigerian Experience (Published)
In this paper an attempt is made to demonstrate the application of auditing standards on auditor’s performance. The study involves firms in Nigeria.A 13-item questionnaire constructs by the researchers, validated by two experts and which has an internal consistency co-efficient of 23 percent served as the instrument of data collection. This study, empirically using ordinary least square (OLS), reveals that the external auditors in Nigeria are complying with standards and many criticisms were directed to International Auditing Standards. Consequently, the research suggests the need for more interpretations, clarifications and improvements to be more applicable and suitable for the Nigerian auditing environment.
Keywords: Auditor, International Auditing Standard, audit firms and Nigeria auditing standard
Auditing Standards and Auditors Performance: The Nigerian Experience (Published)
In this paper an attempt is made to demonstrate the application of auditing standards on auditor’s performance. The study involves firms in Nigeria. A 13-item questionnaire constructs by the researchers, validated by two experts and which has an internal consistency co-efficient of 23 percent served as the instrument of data collection. This study, empirically using ordinary least square (OLS), reveals that the external auditors in Nigeria are complying with standards and many criticisms were directed to International Auditing Standards. Consequently, the research suggests the need for more interpretations, clarifications and improvements to be more applicable and suitable for the Nigerian auditing environment.
Keywords: Auditor, International Auditing Standard, audit firms and Nigeria auditing standard