NEXUS BEWEEN AUDIT EXPECTATION GAP AND RELIANCE ON AUDITED FINANCIAL STATEMENTS IN NIGERIA

Ezuwore, Obodoekwe and Agbo, Elias Igwebuike (2020) NEXUS BEWEEN AUDIT EXPECTATION GAP AND RELIANCE ON AUDITED FINANCIAL STATEMENTS IN NIGERIA. European Journal of Accounting, Finance and Investment, 6 (8). pp. 27-38. ISSN 3466 – 7037

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Abstract

The sudden financial failures that occurred in the companies like Enron, WorldCom, and Xerox in the United States of America, Lehman Brothers, Polly Peck in the United Kingdom and African Petroleum Plc., Cadbury Plc., in Nigeria have created public distrust with the auditors. Unlike before, auditors must now earn the public trust before they are trusted. This study provides an empirical analysis of the connection between audit expectation gap and the reliance on audited financial statements in Nigeria. The survey research design was employed to achieve the objective of the study. Data were also collected through primary source, using structured questionnaire. The study used Chi-square for the analysis of data. The population for the study is two hundred and twenty-four, while the sample size is one hundred and forty-four. Findings show that the process of appointing auditors has a significant relationship with the public reliance on audited financial statements, audit expectation gap is significantly connected with public reliance on audited financial statements and the quantity of frauds detected by auditors has a significant relationship with the public reliance on audited financial statements in Nigeria. The study recommends that a new business-reporting model be put in place aimed at releasing more non-financial information to the public and providing clear description of the role of independent audit.

Item Type: Article
Subjects: H Social Sciences > HJ Public Finance
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 04 Oct 2021 10:19
Last Modified: 04 Oct 2021 10:19
URI: http://eprints.gouni.edu.ng/id/eprint/3194

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