AUDITOR INDEPENDENCE

This study examined the influence of audit characteristics on the financial reporting quality of deposit money banks listed on the Nigerian Exchange. The main objective was to assess the effects of audit firm tenure, audit firm size, and non-audit services on the credibility and transparency of financial reports. The study adopted an ex-post facto research design and utilized secondary data collected from annual reports of twelve listed banks covering the period 2016 to 2023. The data were analysed using panel regression analysis with robust standard errors to account for heteroskedasticity. The study finds that audit firm tenure has no significant impact on financial reporting quality, indicating that the duration of auditor-client relationships does not independently determine reporting outcomes in the Nigerian banking sector. However, audit firm size showed a significant positive relationship with financial reporting quality, suggesting that larger audit firms contribute to higher transparency and reliability due to their extensive expertise and stronger regulatory oversight. Additionally, non-audit services exhibited a significant positive effect on financial reporting quality, implying that when properly managed, these services can enhance auditors’ operational understanding and improve audit effectiveness rather than compromise independence. The study concludes that audit firm size and non-audit services are critical determinants of financial reporting quality among Nigerian deposit money banks, while audit firm tenure plays a limited role. The study recommends that regulators encourage the use of reputable large audit firms and implement guidelines to manage non-audit services effectively to strengthen overall audit quality and financial transparency in the sector

This study examines the relationship between auditor independence and corporate fraud across 8 Publicly listed companies spanning multiple sectors in Nigeria. The research investigates five key determinants of auditor independence; audit tenure, non-audit services, audit firm rotation, audit firm size, and audit fee dependence, and their impact on fraud detection. A quantitative research design was employed, utilizing secondary data from financial statements, audit reports, and corporate filings from 2018 to 2023. Descriptive and inferential statistical analyses were conducted to assess how each factor influences corporate fraud risk. The findings indicate that prolonged audit tenure can either enhance fraud detection by improving auditors’ understanding of clients or impair independence due to familiarity threats. The provision of non-audit services was found to significantly increase fraud risk, as financial dependence on additional consulting engagements compromises auditors' objectivity. Mandatory audit firm rotation was associated with reduced fraud risks by introducing fresh perspectives and minimizing complacency, although frequent rotations posed transitional challenges. The study also found that audit firm size had an inconclusive effect on fraud detection, with Big Four firms benefiting from greater regulatory scrutiny but still susceptible to financial incentives. Furthermore, audit fee dependence was strongly linked to increased fraud risks, as auditors reliant on a single client’s fees were less likely to issue adverse opinions. The study concludes that strengthening auditor independence through stricter regulatory enforcement, mandatory firm rotation, and limitations on non-audit services is essential for mitigating corporate fraud. The findings provide practical insights for policymakers, auditors, and corporate governance bodies to enhance financial reporting integrity and fraud prevention mechanisms in Nigeria