Auditors’ Independence and Audit Quality of Money Deposit Banks in Nigeria

Abstract

Auditors' independence refers to the auditor's ability to be free from influence or predisposition, and consequently the unprejudiced mental demeanor in going with choices all through the review and reporting process. A lack of freedom can significantly diminish the worth of the review administration and report. The purpose of this study was to investigate the association between auditor independence and audit quality in Nigerian money deposit banks (MDBs). The study considered the of ten years (2011-2020), eight money deposit banks were chosen. Data was retrieved from audited financial statements of the selected money deposit banks and evaluated using e-views 10 to determine the outcome.  The study discovered that audit rotation and audit fee had a positive and insignificant association with audit quality, whereas audit tenure, board independence, and firm size had a negative and negligible link with audit quality of the quoted MDBs in Nigeria. This study recommends that auditors use a method that adheres to auditing rules and guidelines, or generally accepted auditing practices, in the execution of their duties. This is possible through seminars on current auditing ideas that will be effective in their evaluating practices, so improving the quality of review.

Keywords: Audit quality, Auditor Independence, auditor tenure, auditor rotation

DOI: 10.7176/RJFA/14-20-01

Publication date: December 31^st 2023