That is the higher the compliance with statutory provisions and audit fees, the higher the quality audit report.
Statutory Provisions and Audit Fees
The table above revealed that there is a positive significant correlation between quality audit report, compliance with statutory provisions and audit fees with specific values of 0.344** for professional exposure, 0.328** for compliance with statutory provisions and 0.367** for audit fees. This connotes that quality audit report moves in the same direction with compliance with statutory provisions and audit fees. That is the higher the compliance with statutory provisions and audit fees, the higher the quality audit report.
On the other result, it revealed there is a positive significant relationship between compliance with statutory provisions and audit fees with Pearson correlation values of 0.344** for compliance with statutory provisions and 0.346** for audit fees. This means that compliance with statutory provisions and audit fees moves together, signifying a positive relationship. Lastly, there exists a positive significant relationship between compliance with statutory provisions and audit fees with Pearson correlation coefficient of 0.442.
According International Journal of Zambrut (2011), Estimation result presented above reported coefficient estimate of 0.224, 0.177 and 0.234 alongside probability values of 0.000, 0.004 and 0.000 compliance with statutory provisions and audit fees respectively. This result showed that compliance with statutory provisions exerts a positive significant influence on quality audit report in Nigeria, reflecting the result to reveal that compliance with statutory audit exerts a positive significant influence on the quality audit report in Nigeria financial institutions, indicating that 1% increase in compliance with statutory provisions would breed 0.177 increases in the quality of audit report.
In the same vein, this result showed that audit fees exert a positive significant influence on quality audit report; reflecting that when audit fees increase by 1%, audit report quality will increase by 0.234. R-square value reported in table 2 stood at 0.207 which implies that about 20.7% of the systematic variation in the quality audit report can be explained by professional exposure, compliance with statutory provisions and audit fees. The F-statistics of 32.079 along its probability value of 0.000 showed that the model is statistically significant
Recommendations. The following recommendations were made in line with the findings of this study:
a. As it was established that compliance with statutory provisions enhances credibility of audit report, therefore, auditors must be encouraged to comply with their rules of engagements.
b. The appointment of auditors must be based among other things, their professional exposure which is believe to contribute to independence of auditors and in turn positively influence the quality of audit report.
c. Compliance with statutory provision should constitute a germane factor that should always be put into consideration during the engagement of an audit firm. It is affirmed that auditors that conform their activities to the statutory provisions perform better and produce quality report.
d. Adequate compliance with statutory provision of audit fees should be maintained by organizations. It is believed that when auditors are well remunerated, their conscience might not be easily bought and their judgement might not be easily impaired.
e. Audit engagement must be well defined and that both parties must always adhere to the rules and regulations as provided.
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