Bank Failure and The Role of Auditors in Nigeria
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The incessant rate of failure among Nigerian banb OO'i' beemi off grreil!i11001111
cern to stakeholders in the country s jinw1cial sector.. AUU~H /lllrre !IJxtnnlk
ng sector is very vibrant and dynamic with a lot of inlflk!Yrilillllfii«PPfltfj ullnrndl!lmnrne
characterized the sectm; the present increasing rate C?ffaiiiOIIIfli'! /f1oxr»,, iiy,· oil«~~nmiiJffl1f,
and people have blamed the entire failure on the auditon.· o{IIITIIejimiiU(f!(f// /!Jxommkl\'
without actual empirical evidences to back such clainn~ Thii.s fP!illllf1IIP!T D(f}J)IIHiiinn:et!l
the role of external auditors of banks in Nigeria and ob.sen'ed KII/J111111 tiiTkl!! tar/llf!'!f711¥1Ji!
auditors were not entirely responsible for bank failure. Ho'l.n"'!I!Wif!'!f;. ~wte ~rm/1 (fJ1
weak audit proce.dure adopted by some of the auditors o{llfloe .faiiHd fl»tourn/ky;_ Ftmr
instance, the auditors who audited the failed banks failed lo.fiaiJHtfN' Ullff11 CriHll tii~Kt:
low response rate for debtors circularization. We belie1,;e tleallllw J«J%> ~rm.'ii£
rate constitutes a sufficient warning signal to keep the cmdiilftW:J,' tfPjf ullne.!fimii/lfEilll
banks in red alert to probe further. We are of the opinimt Hllnrudl nllrre l!ii«JciFIII~e./friJJr
failure should he apportioned among lhf! auditors. ha11b Ullll(fJIHIMJI!li,lf5lllllmtl,. 1/Piunmlk
directors and the regulatory bodies.
Keywords
HG Finance, HJ Public Finance