Effect of Auditors’ Independence on Corporate Survival of Listed Deposit Money Banks in Nigeria
Keywords:
Auditors Independence, Audit Tenure, Audit Fees, Net Assets Per ShareAbstract
The study examined the effect of auditors’ independence on corporate survival: evidence from listed deposit money banks in Nigeria. Auditors’ independence was proxy using audit tenure (AUDT) and audit fees (AUDF) while corporate survival was measured using net assets per share (NAPS). The ex-post facto research design was adopted and the data for the study was collected from the annual reports and accounts of the 14 listed deposit money banks on Nigeria Exchange Group (NGX) as of Dec. 31 st, 2022, from 2015 through 2022. Panel Least squares model was used in the data analysis and the results of the study show a significant and positive association between audit fees (AUDF) and corporate survival (NAPS) at a 1-5% significant level. Audit tenure (AUDT) on the other hand was found to have a negative and significant effect on corporate survival at a 1% significant level. The study recommends among others that, paying a sufficient audit fee will incentivize the auditor to complete the assurance engagement assignment in accordance with the high level of standardization required.