For correspondence:-
Received: 14 April 2018 Accepted: 25 May 2018 Published: 30 June 2018
Citation: Determinants of Auditor Choice in Manufacturing Firms in Nigeria. Account Tax Rev 2003; 2(2):157-168 doi:
© 2003 The authors.
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Abstract
manufacturing companies focusing on a mixture of both characteristics of the audit firms and their clients. The longitudinal research design is used in this study. The sampling approach used was the simple random technique for selecting the 35 manufacturing companies for 2010-2016 financial years. The binary regression technique was used in estimating the models. The results reveal that the determinants of auditor choice between complexities and corporate governance mechanism and firm complexity have significant effect on the likelihood that a firm chooses a type of auditor. The study recommended the need to regulate audit pricing so as not to push the big 4 auditors above the reach of most firms. Again audit clients must efficiently look at the cost and benefits analysis before selecting a particular audit firm. Also, the companies must ensure that complexity comes with increases in revenue generated to sustain the choice of the big 4 for those firms that prefer that option. Finally, audit service delivery of all audit firms whether big 4 or non-big 4 should be of the highest quality possible
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