Open AccessECONOMETRIC APPRAISAL OF AUDITORS’ INDEPENDENT CHARACTERISTICS AND AUDIT QUALITY OF DEPOSIT MONEY BANKS IN NIGERIA
Author(s) -
Ahmed Sabo,
Alfred Kwanti
Publication year - 2015
Publication title -
international journal of advanced academic research
Language(s) - English
Resource type - Journals
ISSN - 2488-9849
DOI - 10.46654/ij.24889849.s6109
Subject(s) - accounting , audit , joint audit , business , auditor independence , quality audit , audit evidence , nonprobability sampling , stock exchange , walk through test , chief audit executive , external auditor , audit plan , information technology audit , internal audit , finance , medicine , population , environmental health
The study examines the characteristics of auditor’s independence on audit quality of Deposit Money Banks (DMBs) listed on the Nigerian Stock Exchange (NSE) from 2010 to 2019. A sample size of seven Deposit Money Banks was selected using the purposive sampling technique. The study used secondary data, sourced from the audited annual financial reports of the sampled banks. The analysis of the data was done using descriptive statistics, correlation matrix, and panel regression technique. The findings reveal that audit independence and audit firm rotation are positively related to audit quality, whereas audit firm tenure relates negatively to audit quality. The relationship between audit fees and audit quality is positively insignificant. The study recommends that audit firms are to be rotated after three years of service so as to avoid over-familiarity that may jeopardize the quality of audit reports. Also, the regulatory bodies should commence the enforcement of the three years audit tenure requirement proposed by stakeholders to forestall lengthy auditor/client relationship.