For correspondence:-
Received: 15 February, 2019 Accepted: 15 March, 2019 Published: 31 Marcch 2019
Citation: Board Independence and Audit Quality in Nigeria. Account Tax Rev 2004; 3(1):1-11 doi:
© 2004 The authors.
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Abstract
The motivation for this study emanates from the perception that the production of a quality audit report fosters confidence in financial reports by the issuers of those reports. The paper examines the role of board independence in determining the audit quality of firms. The study utilised 71 non-financial firms for the periods 2009 to 2016. Audit quality was measured using a dummy variable of ‘1’ and ‘0’, with 1 representing the use of a big four auditor by the firm and 0 otherwise. Board independence was measured using the proportion of non-executive directors to total directors. The data collected was analysed using the binary logit regression analysis. The findings reveal that board independence is negatively related to audit quality. The study highlights the importance of having proper mix of competences on the board. The study recommends that the composition of non-executive directors as members of the board should be sustained and improved upon
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