Assessment of the Institutional Regulatory Framework of Auditor Independence in Nigeria

  • Mary Kehinde Salawu


The study assessed the effectiveness of the institutional regulatory framework of Auditor Independence in Nigeria. The study is purely a library research aided by content analysis. The results identified weakness inherent in the regulatory framework assessed such as ineffectiveness of whistle blowing in Nigeria; violation of Auditor’s reporting independence; negligence on the Part of Audit Regulators and External Auditors in Nigeria; absence of unified Code of Corporate Governance in Nigeria and proliferation of Accounting Professional Bodies and decline in Ethics. The study, recommended that, harmonisation of the multiplicity of corporate governance codes and accounting professional bodies in Nigeria by Financial Reporting Council of Nigeria is a pre-requisite for promoting auditor independence among external auditors. Also, regulators in Nigeria should create more stringent regulatory procedures to detect fraud, mete out appropriate disciplinary measure and well as penalise companies and audit firms for erring. Furthermore, the accountancy professional body (ICAN) should promote the dignity of its members by making the appointment of external auditors less dependent on the executive directors and more dependent on the non-executive directors, audit committees and shareholders.

Key words: Auditor, Regulation, Independence, Framework


Journal Identifiers

eISSN: 2070-0083
print ISSN: 1994-9057