EFFECT OF AUDITORS INDEPENDENCE

This study on the effect of auditor independence and audit quality in accounting reports. The study adopts audit familiarity, audit rotation, audit intimidation and contribution both external and internal auditor were measured as dependent variables in this study. Survey data gathering in form of Likert scale were used in gathering data which constitute opinion of professionals from accounting field on the impact of these variables on audit quality. Descriptive and simple linear regression statistical analysis were used in measuring the accumulated data for the survey with the result showing that auditor familiarity and auditor intimidation has a significant impact and negative effect on audit quality. The result show that auditor familiarity leads to 14% fall in audit quality. also, the result show auditor intimidation contributed to up to 48% below par on audit quality. The tested data result also show audit rotation has a significant impact and positive effect on audit quality contributing to 12% rise in audit quality and internal auditor shows to be effective if independent from management of the company compared to external auditor when trying to achieve a greater audit quality. This study also recommends accounting regulating bodies and corporate regulations should try to reduce auditor tenure to improve more auditor rotation thereby also act as important tools in preventing audit familiarity and intimidation. This study also encourages proper spelt out of duties of accounting and management department to reduce work interference thereby promoting independent of accounting and audit department from management office which will be vital in promoting audit quality