Mandating Joint Audits in Nigeria: Perspectives and Issues

Okaro, Sunday C.; Okafor, Gloria O.; Ofoegbu, Grace N.

doi:10.6007/ijarbss/v8-i3/3943

Cited by 6 publications

(9 citation statements)

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“…Despite adopting a qualitative approach, this study contributes to the debate contained in the literature. Perceptions of auditor independence in Nigeria have been surveyed previously to identify the most significant perceived threats to independence (Adeyemi and Akinniyi, 2011;Adeyemi and Oloowokere, 2012), elements of the audit expectation gap (Oloowokere and Soyemi, 2013;Onulaka, 2015), influence of non-audit fees on independence (Akinbowale and Babatunde, 2017), and the advantages and disadvantages of appointing joint auditors (Okaro et al, 2018). Such studies have attained international significance given the rapid development of the Nigerian economy, with a tenfold increase in GDP between 1997 and 2017 to rank thirtieth largest in the world (World Bank, 2018) and the nation's role as the fourteenth largest producer of crude oil (Fantini and Quinn, 2017).…”

Section: Introductionmentioning

confidence: 99%

Non-audit fees and auditor independence: Nigerian evidence

Onulaka

Shubita

Combs

2019

MAJ

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Purpose This study aims to investigate the extent to which the provision of non-audit services (NAS) by external auditors to audit clients affects auditors’ independence and the audit expectation gap in Nigeria. Design/methodology/approach The study adopts an interpretivist approach. In total, 30 semi-structured, face-to-face interviews were conducted to explore the views expressed by audit partners and pension fund managers in Nigeria; group responses were evaluated and presented separately. After transcribing the interview audio recordings, a thematic data analysis of the two groups’ responses was performed. Findings Interpretation of the interview responses indicates that the provision of NAS by audit firms to their audit clients is regarded by auditors as a matter of economic necessity. Nevertheless, it is also perceived as impeding auditors’ independence and increasing the gap between the auditor and public expectations. Practical implications This study contributes to the debate surrounding the need for an independent body to oversee auditing standard setting distinct from the current practice to enhance transparency. Originality/value A qualitative analysis of the nuanced responses obtained from the semi-structured interviews reveals starkly the perceived economic pressures on auditors to accept non-audit work. Moreover, it endorses the regulation to restrict non-audit work in support of a sustainable fee level for an independent audit.

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Section: Introductionmentioning

confidence: 99%

Non-audit fees and auditor independence: Nigerian evidence

Onulaka

Shubita

Combs

2019

MAJ

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“…• Allocate the tasks of work between more than audit firm will promote cooperation and coordination among auditors, which stimulates awareness and innovation (Okaro et al, 2018& Wahdan, 2019.…”

Section: Fundamental Reasons To Consider the Programs Of Joint Auditmentioning

confidence: 99%

“… Joint auditors may always be rotated, so the programs of joint audit can help in alleviating the risk of overfamiliarity with any clients (Okaro et al, 2018;Hussein, 2018;Saleh, 2019).…”

Section: Advantages Of Joint Audit Programsmentioning

confidence: 99%

“…Beside the useful aspects of joint audits, many studies have found negative results of them. Among these negative impacts the following:  Joint audit may have a problem of free-rider, which means neglecting the responsibility of one auditor relying on the other to perform all work (Francis et al, 2009;Okaro et al, 2018).  Joint audit may be costly in comparison with individual one (Deng et al, 2014;Andre et al, 2016).…”

Section: Challenges Of Joint Auditsmentioning

confidence: 99%

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Using Joint Audits to Support the Auditor's Independence "A Field Study"

Balshy¹,

وهدان²,

مصطفى³

2021

المجلة العلمیة للبحوث التجاریة

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“…Given that external auditing serves as a monitoring device (Alsadoun & Aljabr, 2014), the auditor's failure to properly plan the audit can manifest as lower audit quality, higher litigation risk, and loss of reputation (Laux & Newman, 2010). As happened in the Enron & World Companies scandal and the failure of the auditing firm Arthur Andersen have all cast doubt on audit quality, and market concentration (Okaro et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

The Impact of Joint Audit on Audit Planning Quality: A Field Study

سمرة¹,

الزهار²,

فايد³

2022

المجلة العلمیة للدراسات والبحوث المالیة والتجاریة

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In the Egyptian environment, joint audit is implemented voluntary and mandatory before the European Commission issues its report in 2010. It is implemented voluntary for first time in 1981 for the Egyptian Stock companies, insurance companies, and factoring companies. While, banks have been obligated to implement joint audit since 2003. In addition to mortgage finance companies, fund-raising companies, investor protection fund, investment funds, and depository companies and central registration must designate at least two independent auditors. The purpose of this paper is to investigate the impact of joint audit on audit planning quality in the Egyptian environment. By examining whether joint audit can affect on the initial audit planning, the comprehensive audit strategy, and the overall audit plan and program, as proxies for audit planning quality. To test our hypotheses, we use a sample of 400 professional auditors from different-sized auditing firms and academics from different Egyptian universities. The results of our multiple regression analyses show that joint audit has a significant positive impact on the initial audit planning. Moreover, we find that joint audit has a significant positive impact on the comprehensive audit strategy. We also find joint audit has a significant positive impact on the overall audit plan and program. The results of the additional analyses show that the majority of the respondents' opinions (93%) support the application of voluntary joint audit for all companies and (89%) support if one of the two appointed auditors is a non-big 4 auditor.

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Mandating Joint Audits in Nigeria: Perspectives and Issues

Cited by 6 publications

References 0 publications

Non-audit fees and auditor independence: Nigerian evidence

Non-audit fees and auditor independence: Nigerian evidence

Using Joint Audits to Support the Auditor's Independence "A Field Study"

The Impact of Joint Audit on Audit Planning Quality: A Field Study

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