HOW INDEPENDENCE IN FACT ASSURES AUDIT QUALITY IN NIGERIAN BANKING
INDUSTRY

Udisifan Michael Tanko
Department of accounting Bayero University Kano-Nigeria, Faculty of Management Sciences.
E-mail: umichaeltanko@gmail.com GSM: +2348039619727
(Correspondence Author)
and
Prof. Kabiru Isa Dandago
E-mail: kidandago@gmail.com GSM: +2348023360386

Abstract
The objective of the study is to examine how independence in fact assures audit quality in Nigerian banking industry. The study used two accounting firms in Kano, Nigeria. The study employs survey research design and primary source of data were used. The data were obtained through interview. The researcher carryout in-depth face-to-face interviews with the staffs of the selected accounting firms. The analytical technique employed in the study is thematic technique. The study reveals that quality of audit highly depends on the auditor independence in fact. It was also found that for auditors to provide quality audit service there is high need for auditors to adhere to the professional ethics provided by different accounting bodies. The study recommends that accounting firms members should adhere to the professional ethic which independence (independence in facts and in appearance) is one of the ethics in order to provide quality audit service to their clients; professional bodies should revoke the licence of any accounting firms member who violate the professional code of conduct with immediate effect. The study also recommends that regulatory bodies such as Security and Exchange Commission (SEC), Financial Reporting Council of Nigeria (FRCN) and other government agency should review the provisions in Companies and Allied Matter Acts (CAMA) and code of corporate governance provision on renewal of auditors’ tenure limit to five years in a firm in order to encourage auditor’s rotation. If this done it will help to prevent familiarity threat that impair auditor independence fact and it will increase audit quality.

Keywords: Accounting Firms, Audit quality, Banking industry, Independence in fact, Professional bodies.

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https://afra.org.ng/wp-content/uploads/2022/03/pro2019019.pdf

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