This contains research articles published by lecturers in the department of Accounting

Permanent URI for this collectionhttps://repository.nileuniversity.edu.ng/handle/123456789/103

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Start date: 2020Subject: search.filters.subject.Audit Quality

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    IFRS Adoption and Audit Quality in Nigeria
    (Global Journal of Accounting, 2021-02-02) Uthman Ahmad Bukola; Abdulai Agbaje Salami
    Incessant audit mistakes as unveiled by the Financial Reporting Council of Nigeria (FRCN’s)sanction on audit firms as well as the consequential ligation of the ‘prestigious’ audit firms suggest the need to examine the quality of audits. This aim of this study is to find out how the relationship between audit quality and International Financial Reporting Standards (IFRS) Adoption is moderated by auditor industry specialization of listed companies in Nigeria. The study drew data mainly from secondary sources. That is, extracted data from financial reports of 52 listed companies in Nigeria covering periods between 2005 and 2019 were used. The period covers both pre IFRS and IFRS period to ensure a balanced spread of data across both periods across all industries. The overall observation totaled 517 and the analysis of data was carried out with the use of longitudinal econometric models. The findings of the study are: (i) adoption of IFRS significantly affects audit quality suggesting an improvement in audit quality due to IFRS adoption. In the financial services industry, the results indicate that adoption of IFRS does not significantly affect audit quality (ii) IFRS adoption led to significant reduction in the audit quality of both financial and non-financial services industries due to auditor industry specialization. The study recommends, among others, the need for the regulatory authorities to include oversight on auditor industry specialization so as to ensure it achieves a desired outcome of improved audit quality and ensure students are trained to acquire accounting skills in their industries of interest to further improve audit quality.
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    Impact Of Auditor Industry Specialization On The Audit Quality Of Listed Non-Financial Firms In Nigeria
    (Nigeria Journal of Risk and Insurance, 2022-02-02) Uthman Ahmad Bukola; Salami, Abdulai Agbaje; Ajape, Kayode Mohammed
    Audit quality improvement depends on several factors documented in the literature. Auditors are able to attract patronage if clients perceive their services to produce quality outcomes. Auditors therefore garner experience and acumen in the activities of specific clients’ industries in order to attract the largest market share and improve their portfolio of clients in certain industries as a result, they attain the status of ‘specialization’ in the audit of such industries. In spite of this ‘specialization’, indices of dwindling audit quality continue to surface in the corporate entities occasioned by untimely takeovers and abrupt mergers. Therefore, this study examines the nexus between audit industry specialization and audit quality in the listed non-financial firms in Nigeria Data were drawn from financial reports of 40 listed firms in Nigeria covering periods between 2005 and 2019 and the total observation stood at 517. Data analysis was carried out with the use of longitudinal econometric models. Evidence from the study support the rejection of the null hypothesis (t=-1.72, p) for the two models thereby supporting the proposition that audit quality improved significantly improved as a result of audit industry specialization. It specifically isolates the oil and gas as well as service industries for significant improvement in audit quality as a result of industry specialization of auditors while pointing to the possibility of improving the agricultural and consumer service industries due to their negative but insignificant coefficients. The study recommends that regulatory authorities should disaggregate regulatory functions among industries to be able to better understand the interplay of audit industry specialization and thus make policies that inform better audit quality.