Auditor Scepticism and Financial Crises: The Nigerian Factor

Abstract

Abstract:This research is carried out in order to examine auditor scepticism with respect to Nigerian financial crises. The study employed survey research method based on threats to professional scepticism at different structural levels as identified by [14]. The primary data was supplied by 270 respondents who are professional accountants and bankers in Akwa Ibom State, Nigeria. The study utilized principal component factor analysis to identify the component factors in the twenty item questionnaire. Correlation, Kaiser-Meyer-Olkin (KMO) and Bartlett's test of sphericity was performed to assess the factorability of the data. The tests revealed among others; that factors of professional scepticism responsible for financial crises in Nigeria can be first traced to engagement team lapses, followed by individual auditor lapses and then profession/audit firm lapses. The study recommends that effort should be made by audit engagement team leaders in order to set a clear direction of audit work. They should also employ adequate audit planning, supervision and good time management skills.