Determinants of Audit Quality: Evidence from Nigerian Listed Insurance Companies

Olabisi, Jayeola; Kajola, Sunday Olugboyega; Abioro, Matthew Adekunle; Olympus, Oworu Oyefemi

doi:10.15688/ek.jvolsu.2020.2.17

Cited by 2 publications

(2 citation statements)

References 25 publications

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“…Research into the role of computer forensic technology in the audit quality of firms in emerging markets is scarce and generally unexplored. Previous studies mainly concentrate on audit firms' characteristics such as size, auditor's expertise, auditors' skepticism, and audit fee as determinants of audit report quality (Amahalu, 2017;Amahalu et al, 2018;Fujianti & Satria, 2020;Jayeola et al, 2020;Salehi et al, 2019;Subianto, 2018;Sulaiman et al, 2018).…”

Section: Problem Statementmentioning

confidence: 99%

Forensic Audit Technology and Audit Report Quality of Selected Audit Firms in Nigeria

Olusola Esther,

Oluyinka Isaiah,

Yusuf

et al. 2023

IJEBMR

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The resultant effect of adapting forensic technology with the intention of improving audit approach for the cause of redeeming the public trust in auditors' reports which has been on the decline is the focus of the study. Hence, the influence of data analytics and textual analytics as forensic audit technology on the audit report quality of selected audit firms in Nigeria was examined. Using a survey research design, a structured five-point Likert scale questionnaire was employed and 106 useful questionnaires were retrieved from the monkey survey on experienced and professional auditors from the 281 registered auditing firms with ICAN as of January 1st of 2022. The census sampling technique was adopted and the obtained response was analyzed using ordinal logistic regression. The findings show that data analytics have a positive and significant effect on audit report quality while textual analysis has negative and significant effect on the audit report quality of selected audit firms. It was then concluded that the usage of data analysis techniques in gathering audit evidence improves the quality of reports issued by audit firms in Nigeria. It is recommended that audit firms should embed forensic technology in audit engagement to sharpen their opinion through proper audit evidence and in turn favorably influence audit quality.

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Section: Problem Statementmentioning

confidence: 99%

Forensic Audit Technology and Audit Report Quality of Selected Audit Firms in Nigeria

Olusola Esther,

Oluyinka Isaiah,

Yusuf

et al. 2023

IJEBMR

View full text Add to dashboard Cite

show abstract

“…Audit engagement provides report which gives an opinion on auditor's assessment of whether management's account of business' financial operations comply with required rules or standards. In the view of Olabisi, Kajola, Abioro and Oworu, (2020), audit deals with gathering and assessing evidence, which is the basis of forming an unbiased opinion on financial reports by an independent auditor that business correctly accounts for funds entrusted to it by owners. It provides confidence in the quality of financial reports prepared and presented by management.…”

Section: Introductionmentioning

confidence: 99%

Untitled

2022

EJAAFR

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Audit quality is an issue of great concern in dealing with the confidence and credibility crisis that has engulfed the investment scene following collapse of many firms around the world as a result of outright fraud or fraudulent financial reporting. The study used panel data approach to investigate determinant of audit quality of firms listed in Nigerian Stock Exchange. Positivist research paradigm and Ex post facto research design was adopted. Thus secondary data was collected from sample of 14 firms purposively selected from non-financial firms from 2012 to 2019 resulting to 112 firm specific observations. Audit quality measured by accrual quality developed by Dechow and Dichev 2002 is the dependent variable. Audit fee, audit independence, audit switching, audit effectiveness (audit firm size) constitute the independent variables. Result of the study revealed that about eleven percent variation in the audit quality of sampled firms was jointly explained by the independent variables used in the study. The beta coefficient of the variables showed that audit fee, audit independence, audit switching and audit effectiveness (audit firm size) is negative but not significant in influencing accrual level. This indicates that the independent variables by reducing accrual level increases audit quality. The study concluded that audit fee, audit independence, audit switching and audit effectiveness by reducing accrual level has positive but insignificant effect on audit quality of selected firms. The study affirms Agency theory that managers opportunistic behaviour can be reduced by a third party employed by the owners. The study among other things recommended that firms should review their policies particularly as it concerns their external auditors to ensure that there are no familiarity threats, real or perceived conflict of interest that will undermine their independence in carry out their services. there is also need to enforce recent regulations toward audit firm rotation or switching after the ten years' period specified in the 2018 Code of corporate governance in order to reduce information risk and enhance audit quality.

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Determinants of Audit Quality: Evidence from Nigerian Listed Insurance Companies

Cited by 2 publications

References 25 publications

Forensic Audit Technology and Audit Report Quality of Selected Audit Firms in Nigeria

Forensic Audit Technology and Audit Report Quality of Selected Audit Firms in Nigeria

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