For correspondence:-
Received: July 23 2022 Accepted: September 25 2022 Published: SEPTEMBER 30 2022
Citation: Audit Features in Auditor’s Independence in the Deposit Money Banks in Nigeria. Account Tax Rev 2007; 6(3):41-57 doi:
© 2007 The authors.
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Abstract
The aim of this paper is to examine the impact of audit features such as audit firm size, audit firm rotation, audit tenure, and audit market competition on the auditor's independence of the Deposit Money Bank (DMB) listed in the Nigeria Exchange Group. The data on the auditor's independence, the likelihood of engaging big4 audit firm, the likelihood of audit firm rotation, audit tenure, and audit market competition were derived from the annual reports of the 13 Deposit Money Banks in Nigeria for 7 years. The panel data regression was the method of data analysis. The results of the data analyses revealed a positive and significant relationship between auditor's independence and each of the following: the likelihood of rotating audit firms, audit tenure, and audit market competition. Conversely, this study found a non-significant relationship between auditor's independence and the likelihood of engaging big4 audit firms. Therefore, the study recommends that the regulators of the firms in the banking sectors should encourage audit firm rotations coupled with fixed but long audit tenure, and discourage the current practices of concentrating audit engagement in the sector to the big4 audit firms.
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