The Relationship Between Auditors Independence and Audit Report Quality in Listed Nigerian Deposit Money Banks in West Africa
The Relationship Between Auditors Independence and Audit Report Quality in Listed Nigerian Deposit Money Banks in West Africa

Summary/Abstract: This study focused on the relationship between auditors’ independence and quality of audit report. To investigate this objective a survey research design was adopted to gather data from the respondents through the distribution of questionnaires to 120 respondents comprised of 12 auditors and 108 senior staff of the 12 randomly selected Deposit Money Banks (DMBs) in Nigeria. In addition, 120 copies of questionnaires were distributed to the respondents from which only 118 questionnaires were returned and used for the study. Both descriptive and inferential statistics of logit regression was adopted for the study. The result obtained from the regression analysis showed that there was a significant positive relationship between auditor independence and quality of audit report. This assertion was premised on the fact that the p-value of the LR-statistics computed for the test of 0.0000 was less than the critical value of 5%. It was concluded that auditor independence and quality of auditor report were sufficiently related. It was recommended that auditors should not interfering with the affair of its client in order not to erode its independence.

• Details
• Contents