Cultural Factors and Audit Quality. Evidence from Nigeria

Okaro, Sunday C.; Okafor, Gloria O.

doi:10.6007/ijarafms/v5-i2/1558

Cited by 5 publications

(6 citation statements)

References 7 publications

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“…A debate among scholars on how ethics in sub-Sahara-Africa (SSA) and elsewhere impact audit quality is currently occurring (Abdelhak et al, 2019;Righetti, 2018, 2019;Waweru, 2014). A clear understanding of how ethics directly or indirectly impact audit quality has yet to be empirically investigated as no studies heretofore have investigated this causal relationship in detail (Arowoshegbe et al, 2017;Materu and Righetti, 2019;Okaro and Okafor, 2015). An empirical question dominating the discussion is: How does ethics impact audit quality in SSA.…”

Section: Research Background and Gapmentioning

confidence: 99%

The Impact of Ethics on the Audit Quality of Firms in Sub-Sahara Africa

Mvunabandi,

Maama

2023

IJEFI

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Sub-Saharan Africa (SSA) is a region characterised by unique challenges related to weak governance structures, inadequate regulatory frameworks, and limited resources. These challenges pose significant risks to audit quality, as they can compromise the independence, objectivity, and professional judgment of auditors. Moreover, the ethical values of the region can also have a significant impact on audit quality, as they shape the behaviour and attitudes of auditors and the firms they audit. The aim of this study was to investigate the impact of ethics on audit quality among firms in SSA. The study uses a sample of 323 firms from 12 sub-Saharan African countries, covering the period from 2012 to 2021. The research design is quantitative, employing a panel data approach and regression analysis. The econometric model used to estimate the impact of ethics on audit quality was based on variables such as audit quality, ethical values, tenure, audit size, auditor reputation, firm size, return on assets, ownership structure and board independence. The data was collected from the World Economic Forum, Bloomberg Database and other sources. Regression results demonstrated a negative and insignificant impact of ethical values on audit quality. However, the tenure of auditors had a positive impact on audit quality. The results of this study suggest the importance of promoting ethical behaboiur and strengthening ethial standards in auditing profession in SSA.

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Section: Research Background and Gapmentioning

confidence: 99%

The Impact of Ethics on the Audit Quality of Firms in Sub-Sahara Africa

Mvunabandi,

Maama

2023

IJEFI

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“…The aims and objective of this paper is to evaluate the effect of culture on the effectiveness of corporate governance practices in Nigeria. Generally, culture refers to the way of life of any group of people as illustrated by the perceptions of loyalty to an ethnic group (Adigun, 1995;Okaro and Okafor 2015). By extension, the attitudes and behaviors of management are affected by nationality and culture of the society (Langlois and Schlegelmilch, 1990;Jackson, 2000).…”

Section: Introductionmentioning

confidence: 99%

“…Globally, the recent corporate scandals that shocked the world through the collapse of certain companies such as Enron, Adephile, Parmalat and WorldCom have demonstrated not only the weaknesses in corporate governance but also raise the issues of how culture impacts on corporate governance. These weaknesses might have adverse effect on companies located in countries with poor corporate governance mechanism especially when it pertains to attracting investors from abroad (Okaro and Okafor 2015). Recently, the financial crises in 2007/2008 reiterated the significance of good corporate governance practices in both developed and developing economies.…”

Section: Introductionmentioning

confidence: 99%

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The effect of culture on corporate governance practices in Nigeria

Osemeke

2017

Int J Discl Gov

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“…However, in recent times a lot of corporate collapses and related frauds have taken place in Nigeria including the distress saga in Nigerian Banks and the Cadbury (Nig)Plc. accounting scandal (Otusanya & Lauwo, 2010); (Madawaki & Amran, 2013); (Okaro & Okafor 2013)These have cast aspersions on the credibility of corporate governance in Nigeria. In particular, the effectiveness of audit committees has being called into question.…”

Section: Introductionmentioning

confidence: 99%

Factors Affecting Audit Committee Quality in Nigeria

Chukwunedu¹,

Ogochukwu²,

Onuora³

2015

IJARBSS

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The purpose of this paper is to identify factors that affect audit committee quality in Nigeria. A hand administered questionnaire survey of 52 accounting professionals was undertaken. Descriptive statistics were used to determine the most common factors. Independent t-tests were used to determine whether there were any significant differences in the perceptions of the factors according to gender, job type and experience. The questionnaire findings, which include some factors peculiar to Nigeria, suggest that many factors affect audit committee quality. These include financial literacy of members of the committee, ability of members to ask relevant questions, provision of remuneration to members of the committee, committee's willingness to periodically evaluate itself, tenure of members to be pegged at a minimum of 3 years and provision of regular training for members. The findings uphold the Nigerian Security and Exchange Commission recommendation that an audit committee should have at least one financial expert in the team. The findings of this study are of particular relevance to the Nigerian regulatory authorities especially the Financial Reporting Council (FRC) as it is set to fashion out a new mandatory corporate governance code for establishments under its purview.

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Cultural Factors and Audit Quality. Evidence from Nigeria

Cited by 5 publications

References 7 publications

The Impact of Ethics on the Audit Quality of Firms in Sub-Sahara Africa

The Impact of Ethics on the Audit Quality of Firms in Sub-Sahara Africa

The effect of culture on corporate governance practices in Nigeria

Factors Affecting Audit Committee Quality in Nigeria

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