Perceptions of Auditors' Independence in Nigeria
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the Faculty of Management Sciences, University of Benin, Benin City. Edo State, Nigeria
Abstract
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It has been asserted that the value of an auditor's report or auditing services depends
on the fundamental assumption that auditors are independent of their clients. This
means that if the users of financial statements do not believe that an auditor is
independent of a client, they will have little confidence in the auditor's opinion. There
have been considerable studies on this issue. However, recent events like the collapse
of Enron in the United States of America, the Africa Petroleum saga in Nigeria and
Cadbury Nigeria P LC have opened fresh discussions on the vexed issue of auditors'
independence. This study therefore examined the issue of auditor/ independence
from tlie perspective of various stakeholders. It presents the results from a survey of a
sample of auditors, .bank loan executives and financial analysts. The data. were
subjected to the one-way analysis of variance (ANOVA). The study found that
Nigerian auditors are low on the auditor's independence scale due to a number of
factors. The study also made recommendations to mitigate the situation.
Keywords
HF5601 Accounting, HG Finance