Audit Tenure: An Assessment of its Effects on Audit Quality in Nigeria

Adeniyi, Segun Idowu; Mieseigha, Ebipanipre Gabriel

doi:10.6007/ijarafms/v3-i3/168

Cited by 26 publications

(19 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Prior studies link long tenure of an audit firm to the independence of the auditor; some studies even show that rotation is mandatory to promote independence. Other studies show that audit rotation create independence but do not improve financial reporting quality rather increases audit cost (Adeniyi et al, 2013) because audit firm may have limited information of new client which may consequently lead to lower audit quality (Firth et al, 2012;Bowlin et al, 2015).…”

Section: Auditor Tenure and Financial Reporting Qualitymentioning

confidence: 99%

Auditors Tenure and Financial Reporting Quality: Evidence from a Developing Country

Kalabeke

Sadiq

Keong

2019

International Journal of Asian Social Science

View full text Add to dashboard Cite

The purpose of this paper is to examine the relationship between audit firm tenure and financial reporting quality. Particularly, this study examines whether firms with longer audit firm tenures are more engaged in accrual-based earnings management activities in Pakistani. Current study measures auditor tenure as the number of consecutive years that the client has retained the audit firm. This study selected sample data from 280 non-financial listed firms in Pakistan Stock Exchange (PSE) during the period of 2008-2017, which comprise of 2,800 firm-year observations. The results exemplify that firms with longer audit firm tenures are more negatively associated with accrual-based earnings management activities, and showing better financial reporting quality. Moreover, the study shows that non-mandatory audit firm rotation is associated with accrual-based earnings management activities, and showing poor financial reporting quality. Apparently, the study implies that there is an adverse relationship between auditor tenure and financial reporting quality, pursuant to which the regulators must keep non-mandatory auditor rotation factor in mind during regulatory reforms. This study contributes to the field of corporate governance where it integrates auditor firm tenures with financial reporting quality. Further, this study contributes to practice where it provides deep insight to policymakers who are interested in improving corporate governance in transnational economies. Contribution/ Originality: This study contributes to the existing literature by examining the relationship between audit firm tenure and financial reporting quality in Pakistan. This study contributes to the existing literature by showing that longer audit firm tenure is negatively associated with accrual-based earnings management activities and showing better financial reporting quality.

show abstract

Section: Auditor Tenure and Financial Reporting Qualitymentioning

confidence: 99%

Auditors Tenure and Financial Reporting Quality: Evidence from a Developing Country

Kalabeke

Sadiq

Keong

2019

International Journal of Asian Social Science

View full text Add to dashboard Cite

show abstract

“…A budget is a statement regarding the estimated performance to be achieved during a certain period of times and is expressed in financial measures [10]. A budget as a tool for planning, observing, predicting, and evaluating the performance of an entity to achieve its goals [11]. The process of preparing and compiling a budget is called budgeting.…”

Section: Participation In Budgetingmentioning

confidence: 99%

The Effect of Participation in Budgeting and Internal Control on Managerial Performance in Traditional Market Merchants’ Association with Social Capital as Moderating Variable

Amrin¹,

Nazaruddin²

2021

Proceedings of the 4th International Conference on Sustainable Innovation 2020-Accounting and Management (ICoSIAMS 2020)

View full text Add to dashboard Cite

This study aims to determine the influence of budget participation and intern control through social capital as moderating variable towards the managerial performance of Asosiasi Pedagang Pasar Seluruh Indonesia (APPSI) which located in four traditional market type A in Bantul Regency namely APPSI Pasar Bantul, APPSI Pasar Imogiri, APPSI Pasar Piyungan, dan APPSI Pasar Niten. The result of this study is expected to contribute to informal organizations in the event of maximizing the activities of budget participation and intern control to be able to create a better managerial performance by applying social capital that has a decisive role in the process of institutional development. The data used in this study is primary data collected from 100 respondents who are the administrator of the APPSI in each market who have a direct role and essential responsibility to the organization. Data collection in this study using questionnaires and purposive sampling was chosen as the sampling method. This study uses multiple linear regression and interaction testing or Moderated Regression Analysis (MRA) as the analysis model, which is processed using the SPSS software application. The result of this study indicates that budget participation positively influenced organizational performance. Meanwhile, intern control does not affect organizational performance. Besides, social capital as the moderating variable significantly strengthens the positive effect of budget participation towards managerial performance. Meanwhile, social capital, as a moderating variable, does not enhance the positive influence of intern control on managerial performance.

show abstract

“…There have been mixed results from empirical studies covering effects of quality auditing on fiscal performance, and no notable study has provided conclusive evidence to clarify the position. For example, research by El Guindy & Basuony (2018) indicate that elongated auditor term improves audit quality of the firm, while a study by Adeniyi & Mieseigha (2013) suggest that extended audit firm tenure affects audit quality negatively by derailing chances of quality audit and escalating threats. These studies show a split perspective on the performance contribution of audit quality.…”

Section: Statement Of the Problemmentioning

confidence: 99%

Audit Fees and Financial Performance of Deposit Taking Saccos in North RIFT, Kenya

Serem

Fwamba

Alala

2020

IJIED

View full text Add to dashboard Cite

The collapse of Deposit-Taking SACCOS and financial institutions in Kenya has caught the attention of the public and supervisory agencies to query the quality of audit. SACCO Societies Regulatory Authority on its inspection report indicated that SACCOs have been implicated in maladministration, scams and fraudulent dealings that led to their eventual collapse. SASRA also revoked licenses and rejected audited financial statements of some Deposit Taking SACCOs between 2013 to 2017.These financial scandals have been traced to poor audit quality. The study aimed to test the impact of audit quality on financial performance of Deposit-Taking SACCOs in North Rift Region, Kenya. The study sought to establish the influence of audit fees on financial performance; determine the influence of audit firm tenure on financial performance; establish the influence of auditor independence on financial performance and to determine the influence of audit firm experience on financial performance of Deposit-Taking SACCOs in North Rift Region, Kenya. This study was based on Agency theory, Role theory and the Concept of audit expectation gap, and Stakeholders’ theory. This research adopted descriptive cross-sectional research design. The target population for the study was 266 staff of all the 16 registered Deposit-Taking SACCOs in North Rift Region, Kenya. The sample size was 48 respondents comprising of chief executive officers, finance officers and internal auditors of the Deposit-Taking SACCOs selected using purposive sampling method. Primary and secondary data was used. Questionnaires collected primary data while audited annual financial statements of SACCOs provided secondary data. Inferential and descriptive statistics was used in analyzing data through SPSS version 25. It emerged that audit fees, audit firm tenure and audit firm experience have a significant positive influence on financial performance of Deposit-Taking SACCOs in North Rift Region, Kenya. Auditor independence had an insignificant positive influence on financial performance of Deposit-Taking SACCOs in North Rift Region, Kenya. The study concluded that audit quality has a positive noteworthy impact on financial performance of Deposit-Taking SACCOs in Kenya. The study recommends that regulatory authorities should formulate strict rules on audit fee charges and oversee the implementation of the same. Also, SASRA should ensure DT-SACCOs implement auditor rotation in compliance with auditing regulations and standards. DT-SACCOs to consider auditor’s professional competence and experience before initiating any audit engagement. Finally, DT-SACCOs and auditors should reinforce the professional code of ethics in regard to auditor independence in terms of familiarity between auditor and the client that may lead audit work into jeopardy.

show abstract

Audit Tenure: An Assessment of its Effects on Audit Quality in Nigeria

Abstract: Abstract

Cited by 26 publications

References 37 publications

Auditors Tenure and Financial Reporting Quality: Evidence from a Developing Country

Auditors Tenure and Financial Reporting Quality: Evidence from a Developing Country

The Effect of Participation in Budgeting and Internal Control on Managerial Performance in Traditional Market Merchants’ Association with Social Capital as Moderating Variable

Audit Fees and Financial Performance of Deposit Taking Saccos in North RIFT, Kenya

Contact Info

Product

Resources

About