AUDITOR INDEPENDENCE AND ITS SIGNIFICANCE IN FINANCIAL REPORTING
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- Recommended for : Student Researchers
- NGN 3000
ABSTRACT:
This study examines the significance of auditor independence in financial reporting in Lagos State, Nigeria. The objectives are to: (1) evaluate the impact of auditor independence on financial statement reliability, (2) assess the factors affecting auditor independence, and (3) analyze the relationship between auditor independence and stakeholder trust. A survey design was employed to gather data from auditors and financial managers. The sample size, derived using Taro Yamane's formula, ensures statistical validity. PwC Nigeria was selected as the case study due to its reputation for maintaining auditor independence. The reliability coefficient score of the survey was 0.87. Findings reveal that auditor independence is crucial for ensuring the reliability of financial statements and maintaining stakeholder trust. It is recommended that auditing firms in Lagos State enforce strict independence policies and provide regular training to auditors to uphold these standards.
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