Society of African Journal Editors

Kogi Journal of Management

EFFECT OF AUDITOR’S INDEPENDENCE ON THE FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

Authors: S. J. Inyada Ph.D.; John Ugbede & Edicha, Muhammed

Journal: Kogi Journal of Management

This work is on auditor’s independence on financial performance on money deposit banks in Nigeria, The objective of this study is to examine the Evaluation of auditor’s independence on financial performance of selected deposit money banks in Nigeria. The population of this study comprised of fifteen (15) listed Deposit money banks in Nigeria. Purposive sampling technique was used to select sample size of seven (7) banks. Secondary Data was used and analyzed in Multivariate regression analysis with the aids of Stata 12. The study revealed that there is a positive relationship between audit tenure, audit fee and profitability, but audit rotation is having no relationship and is not statistically insignificant. The regression between auditor’s independence and leverage is negative and statistically insignificant. The study recommends that Auditor’s independence should be strengthened by taking different measures to address the issues which could create threats for auditors. The measures will include, but not limited to regular rotation of auditors, reduction in the tenure of auditors and appropriate audit fees.