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PROFESSIONAL INDEPENDENCE
AND QUALITY CONTROL IN AUDIT PRACTICE OF SELECTED ACCOUNTING FIRMS
ABSTRACT
The failure of many business organization after an
unqualified audit opinion has been given by the external auditors in the same
accounting year, have made the public to question the credibility, independence
and integrity of external auditors. This research work was carried out to:
Find out the challenges to auditors independence in an audit
and
The methods and techniques adopted in ensuring independence.
The population of the study was made up of employees of two
(2) selected audit firms in Uyo. A sample size of twenty four (24) auditors
were selected and a primary data were sourced through the use of questionnaire.
Data were analyzed and four research questions were validated.
The study reveals that auditors are not independent due to
the following factors: undue dependence on client for loans, acceptance of
goods and services as a gift or hospitality from clients. The study concludes
that although the code of professional ethics are provided for auditors to
ensure their independence, most auditors only adhere partially to the code.
The study therefore recommends the creation of conducive
atmosphere for external auditors by the professional bodies, the government,
and also the users of the audited financial statement
TABLE OF CONTENT
Content Pages
Title page
Declaration
Certification
Dedication
Acknowledgment
Table of content
List of tables
Abstract
CHAPTER ONE: INTRODUCTION
1.1Back ground of the study
1.2 Statement of the
problem
1.3 Objective of the
study
1.4 Research question
1.5 Significance of
the study
1.6 Scope and
limitation of the study
1.7 Definition of
terms
1.8 Organization of
the study
1.9 Historical
background of the
Firms under study
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.0 Introduction
2.1 History of
Auditing
2.2 Broad definition
of Auditing
2.3 The need for an
Audit practice
2.4 Organization of
the Audit profession
2.5 The role of an
independent Auditor
2.6 Types of Audit
2.7 The
independence of external Auditors
2.8 Types of
Independence
2.9 Professional
ethics relevant to professional independence
10 Auditing standards for control in Audit work
2.11 Threat to
independence
2.12 Restriction to
independence
2.13 Safeguarding
independence
2.14 Quality control
of Audit
2.15 quality control
procedures that enhance
independence in Audit firms practice
2.16 Theoretical and
empirical frame work
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research design
3.3 Sources and
methods of data collection
3.4 Questionnaire
design
3.5 Population
distribution and sample size determination
3.6 Instrument and
design and administration
3.7 Methods of data
analysis
C HAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0 Introduction
4.1 Questionnaire
administration
4.2 Data analysis
4.3 Validation of
research question
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMMENDATION
5.1 Introduction
5.2 Summary of the
study
5.3 Conclusion
5.4 Recommendation
References
Appendix 1: Transmittal letter
Appendix 2: Questionnaire
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