Corporate Governance and Audit Quality in Nigeria: Evidence from the Banking Industry (Published)
This study examined the relationship between corporate governance and the quality of auditor’s report with evidence from the Nigerian Banking Industry. The research design adopted for this study is the ex-post facto as the research relied on historic data. Eleven (11) deposit money banks quoted on the Nigerian Stocks Exchange were sampled. In testing our hypothesis, the correlation analysis was applied to a dataset covering seven (7) years from 2007 to 2014 that is the post-corporate governance period. Analysis suggests that while board composition has a negative and insignificant relationship with audit quality, separation of the roles of the CEO from that of the chairman of the board, board size, and composition of the audit committee has positive and significant relationship with audit quality. Furthermore, findings also show that ownership concentration has a positive but insignificant relationship with audit quality. Findings also show that the strength of the positive linear relationship between the separation of the roles of the CEO from that of the chairman of the board and the audit quality is as high as 0.702377 or 70.23% followed by the relationship between board size and audit quality which stood at 0.452896 or 45.28%. However, the study thus concludes that effective corporate governance arises out of responsible and simultaneous vigilant actions by the managers, the board of Directors, shareholders and auditors. Good financial Reporting from the external auditors is an important building block of corporate governance because the information provided to the shareholders has to be optimal in terms of cost and benefits. The study also recommends that the relationship between management and shareholders have to be characterized by transparency and fairness.
Keywords: Audit Quality, Board Composition, Board size, Corporate Governance, Nigeria
CORPORATE GOVERNANCE AND AUDIT DELAY IN NIGERIAN QUOTED COMPANIES (Published)
The objective of this study is to examine the determinants of audit report timeliness in Nigeria. Specifically, the study examines the effect of company size, profitability, complexity and audit firm type on audit report timeliness. The cross-sectional research design was adopted with an extensive reliance on secondary data. The data was source from annual reports of manufacturing companies quoted on the floor of the Nigerian stock exchange for 2010-2012. The ordinary least squares (OLS) regression technique was utilized as the method of data analysis. The finding of the study shows the following; (i) A significant relationship exist between board size and Audit report lag (ii) A significant relationship exists between board independence and Audit report lag (iii) A non-significant relationship exists between audit firm type and Audit report lag. It was also discovered that the time lag prescribed by the regulatory bodies are usually too much thus encouraging companies to engage in the act of delaying their financial statements. The recommendation is that in achieving the objective of making the financial statements readily available for making timely decisions, the Nigerian stock exchange, securities and exchange commission, the Financial Reporting council, the Central Bank of Nigeria and other regulatory bodies should put in place measures to ensure strict compliance with the laid down rules and regulations.
Keywords: Audit Report lag, Board independence, Board size