International Journal of Economics and Business Administration
Articles Information
International Journal of Economics and Business Administration, Vol.3, No.3, May 2017, Pub. Date: Aug. 8, 2017
Audit Firm Attributes and Bank Failures in Nigeria
Pages: 20-31 Views: 152 Downloads: 43
Authors
[01] Egbunike Francis Chinedu, Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria.
[02] Egbunike Patrick Amaechi, Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria.
[03] Okafor Ogochukwu Gloria, Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria.
Abstract
The main objective of this study is to examine the relationship between audit firm attributes and bank failures in Nigeria. Specifically, the study shall examine if auditors independence, audit team competency has any effect on the quality of audit report issued by the audit firm. Thirdly, the study shall ascertain if mandatory rotation of bank auditors’ has significant relationship with audit outcome of banks in Nigeria. The study made use of survey research design. The population of the study was made up of chartered accountants; specifically members of Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN), also, to be included are employees of financial institutions in Nnamdi Azikiwe University. The study finds that auditors’ independence has an effect on the quality of audit report issued by auditors. Secondly, there is a significant relationship between audit team competency and quality of audit report issued by the audit firm. Thirdly, there is a significant relationship between mandatory rotation of bank auditors and audit outcome of banks in Nigeria. Based on this the study recommends, that there should be a re-definition of the auditors’ role from that of a watchdog to a professional expert. Secondly, government should expand the role of auditors. An expansion in the role of auditors will also involve an increase in their remuneration. Thirdly, reputable firms should be hired to audit the accounts of the banks.
Keywords
Audit, Audit Firm Attributes, Bank Failures
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