An Examination of the Role of External Audits in Reducing Agency Conflicts: A Study of MTN Nigeria
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Agency conflicts arise from the divergence of interests between shareholders and managers in corporations. External audits act as a mitigating tool, ensuring that management decisions align with the interests of shareholders and other stakeholders. By providing independent verification of financial statements, external audits foster transparency, accountability, and trust (Johnson et al., 2024).
MTN Nigeria, as one of the largest telecommunications companies in the country, operates within a governance framework susceptible to agency conflicts due to its complex ownership structure and high public visibility. Effective external audits are critical in minimizing these conflicts, ensuring that the company adheres to regulatory requirements and ethical standards.
Despite the theoretical benefits of external audits, their effectiveness in reducing agency conflicts remains a subject of debate. Factors such as auditor independence, audit quality, and management resistance often undermine their role. This study seeks to investigate the contributions of external audits to reducing agency conflicts in MTN Nigeria, providing insights into governance best practices.
Statement of the Problem
Agency conflicts have significant implications for corporate governance, including financial mismanagement, ethical lapses, and reduced investor confidence. While external audits are designed to address these conflicts, their impact in organizations like MTN Nigeria remains underexplored. Challenges such as auditor-client relationships, limited regulatory enforcement, and resource constraints further complicate the role of audits.
Existing research primarily focuses on developed markets, leaving a gap in understanding the dynamics of external audits and agency conflicts in emerging economies like Nigeria. This study aims to fill this gap by examining the specific mechanisms through which external audits reduce agency conflicts in MTN Nigeria.
Objectives of the Study
-
To analyze the role of external audits in minimizing agency conflicts at MTN Nigeria.
-
To evaluate the effectiveness of external audits in promoting transparency and accountability in MTN Nigeria.
-
To identify challenges external auditors face in addressing agency conflicts in MTN Nigeria.
Research Questions
-
How do external audits minimize agency conflicts at MTN Nigeria?
-
How effective are external audits in promoting transparency and accountability in MTN Nigeria?
-
What challenges do external auditors face in addressing agency conflicts in MTN Nigeria?
Research Hypotheses
-
H₀: External audits do not significantly minimize agency conflicts at MTN Nigeria.
-
H₀: External audits are not effective in promoting transparency and accountability in MTN Nigeria.
-
H₀: External auditors do not face significant challenges in addressing agency conflicts in MTN Nigeria.
Scope and Limitations of the Study
The study focuses on MTN Nigeria and its external audit practices from 2023 to 2025. It examines the role of audits in reducing agency conflicts, with an emphasis on transparency and accountability. Limitations include restricted access to proprietary audit reports and potential biases in data collection.
Definitions of Terms
-
Agency Conflicts: Disputes or misalignments between principals (shareholders) and agents (managers) in a corporation.
-
External Audits: Independent examinations of financial statements to ensure their accuracy and compliance with regulations.
-
MTN Nigeria: A leading telecommunications provider in Nigeria with extensive operations and public accountability.
Related Project Materials
The Effect of IFRS Implementation on Audit Delays in Nigerian Companies
Background of the Study
Audit delays are a significant concern for companies and investors, as they can...
21. The Effectiveness of Newspaper Campaigns Against Domestic Violence in Sokoto North Local Government, Sokoto State
Chapter One: Introduction
1.1 Background of the Study
Domestic violence is a pervasive societal issue that affects individuals,...
An investigation of the role of traditional rulers in local conflict resolution: A case study of Orlu Local Government Area, Imo State
Background of the study
Traditional rulers have historically played a central role in maintaining social order and resolvi...
ORGANIZATIONAL LEARNING AND EMPLOYEE PERFORMANCE OF SELECTED BREWERY FIRMS
ABSTRACT
This study was carried out to examine organizational learning and employee performance of sele...
THE CHALLENGES OF IMPROVING FREE AND COMPULSORY EDUCATION
BACKGROUND OF THE STUDY
Education is an investment on human being, the investment and characteristics o...
An Examination of Tax Compliance Among Logistics Companies in Abuja
Background of the Study
Tax compliance is crucial for economic development, as it ensures government revenue for infrastructure and publi...
The Impact of Social Media on Nigerian Morphosyntax: A Comparative Study of Twitter vs. WhatsApp Language
Background of the Study
Digital communication platforms have become integral to language evolution, and in Nigeria, social...
The effect of audience design on discourse structure in Hausa storytelling among traditional performers
Background of the Study
Audience design is a crucial concept in sociolinguistics, referring to the ways in which speakers...
An assessment of sleep disorders and their impact on mental health in older adults in Rivers State
Background of the Study
Sleep is a fundamental component of overall health, and sleep disorders can have profound effects on mental well-...
The effect of digital disruption on corporate banking strategic planning: A case study of Sterling Bank, Kano.
Background of the Study
Digital disruption refers to the transformative impact of emerging digital technologies that challenge traditiona...
