AUDITOR’S LEGAL RESPONSIBILITY AND ITS CONSEQUENCES IN ACCOUNTING PROFESSION; CHM

Department → Accountancy

Amount → ₦10,000.00

ABSTRACT This study examined auditors legal responsibility and its consequences in accounting profession. The study specifically examined the effect of; audit committee composition, audit fees and auditor’s independence on the performance of audit firms in Nigeria. Data for the study was sourced through annual reports and accounts of the samples firm. Data collected were analysed using multiple regression. Result of the analysis shows that audit committee composition has positive effect on the performance of audit firms in Nigeria, It was also observed that audit size has significant positive effect on the performance of audit firms in Nigeria. The study further shows that audit fees has significant effect on the performance of audit firms in Nigeria. The study also revealed that Auditor’s independence has significant effect on the performance of audit firms in Nigeria. Given a negative and significant effect of audit committee composition, firms should strive to increase the number of non-executive directors in the audit committee. This will enhance audit quality and by extension return on equity.  Although the size of the external auditor constitutes an insignificant effect on return on equity, firms should strive to associate with the BIG4 external auditors in Nigeria as such an association could enhance the credibility of the audit process and by extension their return on equity. Fees of auditors should be reviewed and increased since poor fees can impire the opinion of an auditor on the accounts of an organisation. This may also lead to less vigilance on the part of the external auditor and even to an obliging attitude of the latter towards the top managers of the company and by extension to poor audit quality. There need for auditors to remain independent to avoid fear of favour in their audit opinion.          




Get the Complete Project Material Now!!!

Contact Us On

We Offer The Following Services To Researchers All Over The World:. Sourcing Of Data,Analysis Of Data,Interpretation , Download Over 50,000 Project materials.We are the best when it comes to research materials, data analysis using:E-view, SPSS etc.
Call : 09068888164
Make An Appointment