IFUEKO QUEEN OSARUONAMEN

This study examines the effect of the auditor-client relationship on audit quality in Nigerian microfinance institutions, using LAPO Microfinance Bank in Edo State as a case study. The main objective is to assess how auditor professionalism, communication, and independence influence audit quality and financial transparency. The study adopted a descriptive survey research design, with data collected from 50 respondents including auditors, audit managers, and finance staff directly involved in LAPO’s audit process. A structured questionnaire was used to obtain primary data, which were analyzed using descriptive statistics, correlation
analysis, and multiple regression techniques with SPSS. The study finds that auditor professionalism positively and significantly improves audit quality by enhancing ethical conduct, competence, and adherence to auditing standards. Effective communication between auditors and clients strengthens mutual understanding and promotes accurate financial reporting. Auditor independence also has a significant positive impact, ensuring objectivity and reducing the risk of bias or undue influence from clients.
The study recommends that microfinance institutions should reinforce auditor independence through strict policies and periodic rotation of auditors. Continuous professional development and ethics training should be prioritized to strengthen professionalism. Furthermore, establishing clear and open communication channels between auditors and management will help to improve audit quality, strengthen stakeholder confidence, and support regulatory compliance.