The Effect of 2011 Revised Code of Corporate Governance on Pricing Behaviour of Nigerian Auditors (original) (raw)
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International Journal of Academic Research in Business and Social Sciences, 2018
This study examined the firms' characteristics and audit fees in Nigeria. The justification arose from the fact that, auditing profession has come under increased scrutiny over the years about the growing amount of fees paid by audit client and the contributing impact of such fees on auditor independence and the need to investigate the firms' factors that affect audit fees in Nigeria. The study employed a employed time series and cross-session data (panel data) of firms listed at the Nigeria Stock Exchange and data used was gathered from secondary source (annual financial statement) of firms quoted at the Nigeria Stock Exchange from 2013-2017. A sample size of eighty-nine (89) firms was used through the aid of Yaro, (1964) formula for sample size determination. And the statistical tool used in the study was Panel Least Square Regression with the aid of Eview 7.0 and SPSS 20. The study found that, auditor type, client's firm size, client's complexity, client's firm risk and audit committee independence have significant effect on audit fees, while firm's profitability has no effect on audit fees. The study recommended that, further academic researchers should employ more corporate governance variables on audit fees and period covered should fall between six to seven years for the purpose of analyzing the data. Similarly, future researchers in relation to this study should equally cover a period of six to seven years using the same panel least square or any other related statistical tool.
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This study aimed at ascertaining those corporate governance variables that determine the audit fees of listed pharmaceutical firms in Nigeria for a 6-year period from 2012 to 2017. The study adopts ex-post facto and Panel research design and secondary data are obtained from the annual audited accounts of the sample of seven (7) out of the population of eleven (11) listed pharmaceutical firms based on a purposive sampling technique. Descriptive statistics, correlation, and multiple regression techniques are used to analyse the effect of corporate governance attributes on the audit fees paid by the sampled firms. The study found that board diligence has positive significant effect on audit fees, while board size and board independence have a negative insignificant effect on audit fees. Thus, the study concludes that the directors of listed pharmaceutical firms in Nigeria should always consider their degree of diligence in determining the amount of audit fees since the extent of their thoroughness in addressing reporting issues would play a role in how much external auditors would accept as their fees. Consequently, the study recommends that listed pharmaceutical firms should ensure efficient management of their total asset, maintain an average number of meetings annually, and maintain an audit tenure in line with statutory requirements to curtail excess fees.
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International Journal of Service Science, Management and Engineering, 2018
Audit failures such as in the case of Enron Corporation, WorldCom Corporation, Global Crossing, ImClone Systems Incorporation and Tyco International have raised concerns on the auditors' ability in discharging their duties. Emergent economies are not exceptional from large corporate failures; for instance the corporate failures in the Nigerian financial sector in the early 1990s brought auditors into sharp focus and caused the public to question the role of accountants and auditors. This study assessed the impact of audit fees on audit quality of listed conglomerates in Nigeria over the periods 2004 to 2015. Data for the study were collected from the annual reports and accounts of the companies. A panel data was employed specifically using, OLS and Random Effect regressions. The paper observed that both audit fees and audit firm size have positive impact on company audit quality. The paper suggested the need for regulatory bodies in line with best practices to look critically into proper modalities for charging audit fees that is commensurate with the audit effort.
Determinants of Audit Fees of Listed Insurance Companies in Nigeria
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Controversies had risen among investors and other stakeholders of corporations why external auditors receive a substantial amount as remuneration of the audit and non-audit services rendered to their clients. These fees had been charged to add trustworthiness to the financial reports prepared by the management and also to protect the interest of the shareholders. A lot of problems occurred on what are such factors that determine (increases or decreases) the audit fees charged by external auditors. This study is aimed at examining the factors that determined audit fees of listed insurance companies in Nigeria using a correlational research design. The study’s population comprised of twenty-six (26) listed insurance companies in Nigeria. Panel data were generated from the annual report and accounts of the sampled insurance companies for the periods 2011-2020 arrived at using a judgmental sampling technique. The study used random effect Generalized Least Square (GLS) regression for data analysis. The study revealed that client size and audit firm size are the important factors determining audit fees of listed insurance companies in Nigeria. While client profitability, client complexity, client underwriting risk, and client liquidity risk are found to have an insignificant and negative effect on audit fees of listed insurance companies in Nigeria. The study, therefore, recommended that auditors of Nigerian insurance companies should inspire their clients in increasing their total assets including their investments which increases the size of their businesses. This increases the companies’ financial performances, as well as, the professional fees collected by auditors of insurance companies in Nigeria.
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