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Economy

Financial Statement

Financial Statement
The report of this auditor on financial statement must give an unbiased and impartial view of the company’s financial activities in order to be useful to the users
Financial Statement

Enofe, Chijioke and Adeyemi (2013). The report of this auditor on financial statement must give an unbiased and impartial view of the company’s financial activities in order to be useful to the users (Enofe and Nbgane2013).the reality facing the stakeholders of financial reporting is that corporate financial reporting failure have been on the increase (Adeyemi, Okpala and Dabor 2012). Babatolu, Aigienohuwa and Uniamikogbo (2018), examined auditors independence and audit quality, a study of selected money deposit banks in Nigeria. Their tests revealed that the need to ensure reliable and high quality of audit work, it must be ensured that auditors must not be too familiar with their clients so as not to jeopardise their integrity and in return impair their independent opinion. Their study also revealed that there is a positive relationship between audit fee, audit firm rotation and audit quality. It therefore recommends that Auditor’s in dependence should be strengthened by taking different measures to address the issue which could create threats for auditors. The researchers failed to proxy other variables like compliance with statutory provisions and professional exposure of auditors to actually juxtapose their findings ( Zambrut International Journal , 2011).
Sheu. U.H and Musa. A.F. 2014, examined audit quality and financial performance of quoted cement firms in Nigeria. The study is descriptive in nature and correlational and ex – post facto designs were adopted in carrying out the research. The results of findings shows that auditor size and auditor independence have significant impacts on the financial performance. It recommended that auditors remuneration be increased in order to Improve their financial performance. The study failed to show the effect that audit fees and compliance to statutory provision would have on audit quality ( International Journal of Zambrut , 2011).
Data and Method. In this research work, data collected were computed using frequency distribution and simple percentages in order to meaningfully describe the data gathered for the study. Also, the simple Ordinary Least Square was used to test the hypotheses earlier set for the study. The Ordinary Least (OLS) was used based on the fact that it would give the best linear unbiased estimate for the parameters involved in the study.
Analysis of the Administered Questionnaires. The result above reveals that out of the 100 questionnaires that were administered, 93 representing 93% were filled and returned while the remaining 7 representing 7% were not returned. This implies that the analysis of the items on the questionnaires will be based on 93 respondents, being the number of the questionnaires filled and returned.
Analysis of the Bio-data of the Respondents
The discovery above shows that 46(49.5%) of the respondents were male while 47(50.5%) were female. This infers that most of the respondents were female.
The table above shows that 14(15.1%) of the respondents were within the age range of 21-30, 43(46.2%) were 31-40, 26(28.0%) were 41-50 while 10(10.8%) were above 50. This shows that most of the respondents were within the age range of 31-40.
The finding of the table above shows that 19(20.4%) of the respondents were within the experience range of 1-5, 33(35.5%) were within the experience range of 6-10, 36(38.7%) were within the experience range of 11-15 while 34(14.9%) were within the experience range of above 15. This implies that majority of the respondents were within the experience range of 11-15.
The table above shows that 74(79.6%) of the respondents were Christian while 18(19.4%) were Muslim. This gathers that most of the respondents were Christian.
It was gathered from the table above that 10(10.8%) of the respondents were Single while 83(89.2%) were married. This concludes that most of the respondents were married.
Analysis of the Item of the Questionnaire
Table 4.7 Audit report quality is subject to the understanding of accounting standards and auditing standards e.g. IFRS, GAAP and SAS
The outcome of the result above shows that 61(65.6%) of the respondents strongly agreed that audit report quality is subject to the understanding of accounting standards and auditing standards e.g. IFRS, GAAP AND SAS, 26(28%) agreed, 1(1.1%) disagree while 5(5.5%) strongly disagreed. This clarifies that most of the respondents strongly agreed that audit report quality is subject to the understanding of accounting standards and auditing standards e.g. IFRS, GAAP AND SAS.
Table 4.8: Compliance with statutory provisions in the cause of auditing or audit works enhance audit quality
From the information above 54(58.1%) of the respondents strongly agreed that compliance with statutory provisions in the cause of auditing or audit works enhance audit quality, 29(31.2%) agreed, 7(7.5%) disagreed while 3(3.2%) strongly disagreed. This proves that most of the respondents strongly agr eed that compliance with statutory provisions in the cause of auditing or audit works enhance audit quality.
Financial Statement - Image 1
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