PROFESSIONAL ACCOUNTANTS PERCEPTION ON MANDATORY AUDIT FIRMS ROTATION AS A PANACEA TO REGAINING PUBLIC CONFIDENCE IN AUDIT PRACTICE IN NIGERIA.
Abstract
The current study assesses the effect of mandatory Audit firm Rotation from the perspective of the professional Accountants in the big four Audit firms in Nigeria and in tertiary institutions in the South east Geopolitical zone of Nigeria on how it affects performance of financial institutions in Nigeria using FirstBank Nigeria PLC. as a study base. The three major factors bothering on mandatory rotation of Audit firms; Audit independence, Audit quality and audit cost were examined and data for this study were gathered through a questionnaire survey using Likert five point scaling. Analysis of variance (ANOVA) was used in testing the null hypotheses formulated. The results reveals the rejection of the three null hypotheses, which invariable means that the mandatory Audit firm Rotation impacts significantly on audit independence, quality and cost. It was also noted that the cost of mandatory Audit from Rotation outweighs its benefits. We therefore recommended among other things. That rotation of the lead partners rather than mandatory rotation should be enforced, revisiting of the policy already been implemented in Nigeria financial sector and the strengthening of the various corporate governance mechanism such as audit committee among others.
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