THE IMPACT OF STATUTORY AUDIT APPROACH ON THE QUALITY OF AUDIT IN NIGERIA

Abstract

This paper examines public confidence in the financial statements of Nigeria and the problems associated with better ways of understanding the problems faced by Nigerian auditors. The purpose of this study is to evaluate the audit approach in terms of audit quality and assurance provided by financial reporting. Despite the number of changes that have taken place in the audit profession during the past twenty years which have changed the way external auditors operate and manage their activities in proving the statutory attest function on the financial statements, there is scarcity of research focused on the way auditors’ carry out their attest function in the midst of dwindling investors’ confidence in Nigeria. Using a survey design, the questions that were raised in the study were answered using descriptive and inferential statistics. F statistics is used for the proposed answers during training. According to the survey, respondents indicate that the auditor believes that adherence to ethical standards is a key factor in maintaining investor confidence. When choosing an audit approach in Nigeria, there are indications that the size, complexity, and risk of the client are very important. The auditor’s understanding of audit quality is very different, but the audit approach also affects the quality of the audit. This study demonstrates that professionals must work to adhere to the professional ethics of Nigeria to ensure adherence to high ethical standards. The audit approach should be based on the size of the client, its complexity and business risks in order to restore customer confidence in the Nigerian financial statements.