THE ROLE OF EXTERNAL AUDITORS IN ENSURING FINANCIAL REPORTING ACCURACY
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- NGN 3000
ABSTRACT:
This research investigates the role of external auditors in ensuring financial reporting accuracy in Lagos State, Nigeria. The objectives are to: (1) evaluate the impact of external audits on financial statement reliability, (2) assess the effectiveness of external auditors in detecting financial irregularities, and (3) analyze the influence of auditor independence on reporting accuracy. A survey design was employed to gather data from auditors and corporate financial managers. The sample size, determined using Taro Yamane's formula, ensures representativeness. PwC Nigeria was chosen as the case study due to its reputation for rigorous external audits. The reliability coefficient score of the survey was 0.89. Findings indicate that external audits significantly enhance the accuracy and reliability of financial reports, with auditor independence being a crucial factor. It is recommended that companies in Lagos State engage reputable external auditors and uphold auditor independence to ensure accurate financial reporting.
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